Sherman, Texas Short Term Rental Regulations Guide for Airbnb hosts

Overview

Yes, short-term rentals are allowed in Sherman, TX. The City of Sherman explicitly permits short-term rentals, defined as the rental of a residential dwelling unit, or portion thereof, for a period of fewer than 30 consecutive days. Property owners and operators must register with the city within 30 days after commencing business in the City of Sherman, and this registration requirement also applies to changes in ownership.

What do Airbnb hosts actually earn in Sherman?

Sherman hosts earn a median $22,901/year with $124 ADR and 65% occupancy.

Top performers pull in $30,074+ per year.

See the full Sherman market breakdown

How to Start a Short-Term Rental Business in Sherman, TX

Step 1: Initial Registration

Timeline: Register with the City of Sherman within 30 days of commencing business
Required for: All property owners and operators of short-term rentals
Renewal: Annual renewal required (multi-family complexes must renew by January 15 each year)

Step 2: Determine Property Classification

Single-Family Rentals: Exempt from the Residential Rental Property License and Standards ordinance (Article 3.11)
Multi-Family Complexes: Must obtain registration prior to Certificate of Occupancy issuance and renew annually

Step 3: Hotel Occupancy Tax Compliance

Visit the City's Hotel Occupancy Tax webpage for specific requirements and compliance procedures
This is critical for legal operation of short-term rentals

Step 4: Fire Safety Compliance (Grayson County)

For properties in unincorporated Grayson County or Short-Term Rental Communities:

Comply with the 2021 International Fire Code with local amendments
Meet Grayson County Fire Code requirements for commercial operations

Required Documents, Permits, Licenses, and Guidelines

City of Sherman Requirements

Short-Term Rental Registration
- Must be filed within 30 days of business commencement
- Required for all short-term rental operations
- Must be updated upon ownership changes
Hotel Occupancy Tax Registration
- Refer to City of Sherman Hotel Occupancy Tax webpage for specific requirements
- Critical for legal tax collection and remittance
Multi-Family Complex Registration (if applicable)
- Required before Certificate of Occupancy issuance
- Annual renewal by January 15
- Must be completed through MyGov portal

Grayson County Fire Safety Requirements

For Short-Term Rental Communities and properties in unincorporated areas:

Fire Lane/Road Requirements
- Minimum 24-foot width with appropriate signage
- All-weather surface (concrete, asphalt, or crushed stone)
- Must support 85,000 lbs
- 13'6" minimum unobstructed vertical clearance
Emergency Access
- 30+ sites require 2 points of emergency vehicle access
- Dead-end roads over 150' need turnaround for fire apparatus
- Automatic gates require siren sensor operation
Fire Protection Equipment
- Fire hydrants or water storage tanks (NFPA 10 or 1142 compliant)
- All unit sites within 150 feet of fire lane
- Fire extinguishing equipment per fire code
Emergency Preparedness
- Emergency Preparedness Plan on file
- Fire safety rules conspicuously posted with:
  - Fire department, police, and EMS phone numbers
  - After-hours contact information
  - Evacuation procedures and routes
Address and Lot Marking
- Visible addresses from roadway
- Contrasting characters on addresses
- Clear lot number markings visible from fire lanes

Additional Compliance Documents

Landlord/Tenant Checklist (required for multi-family complexes)
Residential Rental Property Readiness Guide
Propane Container Compliance (NFPA 1192 and 58 standards)

Specific Regulations

City of Sherman Regulations

Definition: Short-term rentals are for periods fewer than 30 consecutive days
Registration: Mandatory within 30 days of business commencement
Multi-Family Focus: Residential Rental Property License primarily targets multi-family complexes
Single-Family Exemption: Single-family rental units are exempt from the residential rental property license requirements

Grayson County Fire Code Requirements

Code Adoption: 2021 International Fire Code with local amendments
Commercial Classification: Short-Term Rental Communities are considered commercial
Additional Standards: NFPA 1194 and NFPA 1142 referenced for additional guidance

State-Level Regulations (Texas)

While specific state-level STR regulations weren't provided in the source materials, Texas state law applies, including:

Property Code Chapter 92. Residential Tenancies
Attorney General's renter rights guidelines

Contact Information

City of Sherman - Development Services

Address: 317 S Travis Street, Sherman, TX 75090
Phone: 903-892-7206
Email: calebg@cityofsherman.com
Website: www.ci.sherman.tx.us/

Grayson County Fire Marshal's Office

Address: 100 W. Houston Suite # A3-2, Sherman, TX 75090
Phone: (903) 813-4200
Purpose: Fire code requirements for Short-Term Rental Communities

Additional Contacts

Hotel Occupancy Tax: Refer to City of Sherman Hotel Occupancy Tax webpage
Planning Department: planning@cityofsherman.com
Rental Property Violations: Submit through City's rental property violation form

Links to Source Pages

City of Sherman Short-Term Rentals: www.ci.sherman.tx.us/3342/Short-Term-Rentals
Hotel Occupancy Tax Information: www.ci.sherman.tx.us/150/Hotel-Occupancy-Tax
Grayson County Fire Marshal STR Requirements: www.co.grayson.tx.us/upload/page/0193/docs/GCFMO_RV_Fire_Requirements.pdf
Ordinance Updates: cityofsherman.com/1255/Ordinance-Updates
Residential Rental Property License and Standards: www.ci.sherman.tx.us/2294/Residential-Rental-Property-License-and-
MyGov Portal for Multi-Family Complex Registration: web.mygov.us/app/#%7B%2522page%2522:%5B%7B%2522url%2522:%2522/app/home%2522,%2522params%2522:%7B%2522container%2522:%2522#mn%2522,%2522bc%2522:%2522Dashboard%2522%7D%7D%5D,%2522modal%2522:%5B%5D%7D
Rental Property Violations Form: www.ci.sherman.tx.us/FormCenter/Development-Services-20/Rental-Property-Violation-130
City of Sherman Code of Ordinances: ecode360.com/39013084
City of Sherman Zoning Ordinance: ecode360.com/38906554#38906554

Important Notes for Investors

Registration is Mandatory: Operating without proper registration within 30 days of commencement is non-compliant
Multi-Family Focus: The city has placed emphasis on multi-family rental property standards while exempting single-family units
Fire Safety Critical: For unincorporated county areas or STR communities, fire safety compliance is extensive and must be planned for during development
Annual Renewal: Multi-family properties must renew registration annually by January 15
Tax Compliance: Hotel occupancy tax requirements must be addressed for all STR operations
New Permitting Software: Effective March 31, 2025, the city will implement new permitting software that may affect application processes

This guide provides the foundation for legal short-term rental investment in Sherman, TX, but investors should confirm current requirements with the City of Sherman Development Services department before proceeding.

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Ask the AI Advisor about Sherman

Sherman is a mid-sized city in north Texas, serving as the seat of Grayson County along the Red River, which marks the border with Oklahoma. The city has a population of roughly 43,000 and carries a comfortable, lived-in character that blends small-town tradition with the steady growth spilling outward from the Dallas–Fort Worth metroplex. Sherman is best known as a gateway to Lake Texoma, one of the largest reservoirs in the United States, and as the home of Austin College, the oldest continuously operating institution of higher education in Texas. It sits about 60 miles north of Dallas and roughly equidistant from the Oklahoma border, making it a natural crossroads between the two states and a convenient base for travelers exploring the broader Texoma region.

Just north of the city, Lake Texoma anchors much of the area's outdoor appeal. The lake stretches for miles along the Texas–Oklahoma line and offers boating, fishing, sailing, and shoreline camping. Striped bass and catfish draws anglers from across the region, while sandy beaches and marinas make it a warm-weather destination. The lake is roughly a 15-to-20-minute drive from downtown Sherman, depending on the chosen access point, and it hosts several state parks and wildlife areas on its shores.

A short drive west of town, Hagerman National Wildlife Refuge covers more than 11,000 acres along the Big Mineral Arm of Lake Texoma. The refuge protects bottomland hardwood forest, marsh, and open water, drawing photographers and birders who come for wintering bald eagles, white pelicans, and dozens of migratory species. Its trails, auto loop, and wildlife drives make it a rewarding half-day outing within about 20 minutes of Sherman's center.

In the heart of the city, the downtown square and surrounding historic neighborhoods showcase Sherman's 19th-century roots. A block off the square, Austin College anchors the community with its tree-lined campus of red-brick buildings, founded in 1849 and still operating as a small liberal arts college. Visitors can stroll the grounds, take in a lecture or concert, and then wander back into downtown for local restaurants and shops. The Sherman Museum, located in a historic depot near the railroad tracks, adds another layer with exhibits on regional and railroad history.

Sherman's appeal as a short-term rental market comes from its position at the intersection of two states, a thriving college presence, and steady access to Lake Texoma's recreation. Visitors tend to arrive for fishing trips, college visits, family gatherings, and weekend escapes from the DFW metroplex, giving the city a varied and year-round demand profile that rewards owners who can offer comfortable, well-located stays.

Sherman, Texas

Generally Investor Friendly

STR Regulations for Sherman, Texas