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.

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

1. 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

2. Hotel Occupancy Tax Registration

   • Refer to City of Sherman Hotel Occupancy Tax webpage for specific requirements
   • Critical for legal tax collection and remittance

3. 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:

1. 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

2. 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

3. 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

4. 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

5. Address and Lot Marking

   • Visible addresses from roadway
   • Contrasting characters on addresses
   • Clear lot number markings visible from fire lanes

Additional Compliance Documents

1. Landlord/Tenant Checklist (required for multi-family complexes)
2. Residential Rental Property Readiness Guide
3. 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

1. City of Sherman Short-Term Rentals: www.ci.sherman.tx.us/3342/Short-Term-Rentals
2. Hotel Occupancy Tax Information: www.ci.sherman.tx.us/150/Hotel-Occupancy-Tax
3. Grayson County Fire Marshal STR Requirements: www.co.grayson.tx.us/upload/page/0193/docs/GCFMO_RV_Fire_Requirements.pdf
4. Ordinance Updates: cityofsherman.com/1255/Ordinance-Updates
5. Residential Rental Property License and Standards: www.ci.sherman.tx.us/2294/Residential-Rental-Property-License-and-
6. 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
7. Rental Property Violations Form: www.ci.sherman.tx.us/FormCenter/Development-Services-20/Rental-Property-Violation-130
8. City of Sherman Code of Ordinances: ecode360.com/39013084
9. 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.