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The Colony, TX
Generally Investor Friendly
Local STR Agent
Local STR Agent

Yes. Short‑term rentals (STRs) are allowed in The Colony, Texas, subject to registration, Hotel Occupancy Tax (HOT) collection/remittance, and operational requirements. As of early 2022, the city adopted a registration and tax program for STRs. Ordinance No. 2024‑2545 (effective January 2, 2024) added detailed operating rules (e.g., minimum stay, occupancy limits, parking restrictions, signage and lighting limits, special-event prohibition, noise/curfew, designated operator, and signage/noise rules), and established penalties up to $2,000 per offense.
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The Colony hosts earn a median $42,656/year with $217 ADR and 65% occupancy.
Top performers pull in $53,728+ per year.
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Posting and documentation:
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City of The Colony (selected highlights):
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For licensing, program questions, support, and tax remittance:
The Colony Finance Department (Hotel Occupancy Tax):
The Colony STR general inquiries and complaints:
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City of The Colony main contact:
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The Colony is a suburban city in Denton County, Texas, situated on the southern shore of Lewisville Lake within the Dallas–Fort Worth metroplex. With a population of roughly 45,000 residents, it has grown rapidly in recent decades from a small lakeside community into a busy commercial and residential hub. The city carries a relaxed, family-friendly character, anchored by waterfront recreation, sprawling entertainment complexes, and easy access to the broader North Texas region. It sits about 30 miles north of downtown Dallas and roughly 25 minutes from DFW International Airport, making it a convenient base for travelers exploring the metro area without staying in the urban core.
Grandscape is the headline attraction in town, a massive outdoor lifestyle and entertainment development that draws visitors from across the metroplex. The complex features a wide range of restaurants, retail, and entertainment venues, and is anchored by one of the largest Scheels sporting goods stores in the country, which includes an indoor Ferris wheel, aquariums, and a 16-lane bowling alley. It is essentially in the heart of The Colony, just minutes from most short-term rentals in the area.
Just steps from the city center, Lewisville Lake offers nearly 30,000 acres of open water and shoreline for boating, fishing, swimming, and paddling. Stewart Creek Park and other nearby access points give visitors a place to launch boats, picnic, or simply enjoy the water, making the lake a year-round draw for guests who want outdoor recreation without leaving the immediate area.
A short drive east leads to Frisco, home of The Star, the Dallas Cowboys' world headquarters and practice facility. The complex includes the Ford Center, restaurants, and shops, and hosts public events that attract football fans throughout the year. Just a few minutes farther, the Dr Pepper Ballpark serves as home to the Frisco RoughRiders minor league baseball team, offering affordable family entertainment in a classic ballpark setting.
A bit farther afield, McKinney and Plano expand the dining and shopping options for visitors willing to explore. McKinney's historic downtown square is known for its preserved 19th-century architecture, locally owned restaurants, and weekend events, while Plano's Legacy West development is a polished destination for upscale retail and dining.
The Colony makes a compelling base for short-term rentals because it blends small-city calm with big-city access. Guests enjoy lake recreation, walkable entertainment at Grandscape, and quick drives to professional sports, shopping, and cultural attractions across the metroplex, all while staying in a quieter, more affordable pocket of North Texas.
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