How to Start a Short-Term Rental in Houston: Permit, Taxes and Rules

If you plan to rent a house, condo, apartment or even one bedroom to guests for fewer than 30 consecutive days in Houston, you now need a city registration before you take a booking. The city's first short-term rental (STR) ordinance was adopted on April 16, 2025 and took effect on January 1, 2026. Registration opened on October 1, 2025 at houstonstr.org. The city calls the document a Certificate of Registration, but most owners search for a houston short term rental permit or houston short term rental registration, and both lead to the same process.

This guide walks through the steps in order, covers the Texas business and tax filings that often come with an STR, and points out the mistakes that cause delays.

This is informational content, not legal or tax advice. Ordinances get amended and fees change, so confirm every figure on the city and state pages listed below before you pay or file. Talk to a qualified attorney about your lease, HOA and liability questions, and a CPA about entity choice and taxes.

What counts as a short-term rental in Houston

Under the ordinance, a short-term rental is any dwelling unit, or part of one, rented for fewer than 30 consecutive days. That definition covers a whole house, an apartment, a condo, a converted garage apartment, or a single room in a home you live in. Stays of 30 consecutive days or more fall outside that definition.

Because the rule applies to the unit or the part of a unit that is rented, a homeowner who rents a spare room on a short-term basis is in scope. Do not assume a small or occasional rental is exempt.

Materials and information you need before you start

Gather these items before you open the portal. Missing documents are the most common reason a registration stalls.

• Owner and property details: the legal owner's name, the property address and the information that matches your deed or lease.
• Owner authorization or lease: if you rent the property you plan to list, you need written authorization from the owner, or a lease that allows short-term rental use.
• An emergency contact: a person the city can reach about the property at any time.
• Links to every platform listing: the registration asks for your listing links, and the registration number must be given to each platform.
• A human-trafficking awareness training certificate: complete the training before you apply and keep a copy of the certificate.
• Proof of hotel occupancy tax remittance or registration: listings that appear only on Airbnb do not need this proof.
• A payment method: the Certificate of Registration fee is reported at $275 per year per property. Check the city's fee schedule for any added processing charge.
• If you form an LLC: a Texas Secretary of State account on SOSDirect, and a registered agent with a physical Texas address.

Step 1: Confirm the property is allowed to host guests

The city registration does not decide whether your property may host short-term guests. Check three things before you spend money on filing.

• Your lease or HOA documents. Many leases and HOA covenants ban short-term rentals outright or limit them. Read the actual document, not a summary from a neighbor or a listing site.
• Your zoning. Ask the City of Houston how your address is zoned and whether any rule applies to that location. This guide does not state zoning rules for individual addresses.
• Your insurance. Standard homeowner and renter policies may exclude paid short-term guests. Ask your insurer in writing what is covered and what they require.

If a lease or HOA rule conflicts with your plan, stop here. A registration will not override a private restriction, and a city certificate will not protect you from a lease violation.

Step 2: Decide how you will operate

You can run an STR in your own name or through a business entity. The choice affects personal liability, taxes and paperwork. It is a decision to make with a CPA or attorney, not a form to fill out in a hurry.

Option A: Sole proprietor with an assumed name. If you operate under a name other than your own legal name, you file an Assumed Name Certificate with the county clerk in each county where you conduct business. Sole proprietors and general partnerships file with the county clerk, not the Secretary of State. County clerk fees vary by county, so check the clerk's page for the county where your property sits. Most of Houston is in Harris County.

Option B: Texas LLC. The Certificate of Formation (Form 205) costs $300. Here are the timing options from the Secretary of State:

• Standard Expedite: $50 per document, typically processed in two to three business days.
• Next Day Expedite: $500 per document, processed by close of business the next business day for filings received by 12:00 p.m.
• Same Day Expedite: $750 per document, processed by close of business the same day for filings received by 12:00 p.m.

Expedite fees are added to the filing fee. The Secretary of State does not publish a guaranteed standard turnaround, and electronic filing through SOSDirect is the fastest route. Mailed or hand-delivered documents generally take at least one business day just to show as received.

Before you file, check the name. An LLC name must include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C., and it must be distinguishable from existing registered names. Call (512) 463-5555 for preliminary availability. If you need time, a name reservation costs $40 and lasts 120 days. Your LLC must also keep a registered agent with a physical Texas street address. A post office box or mail forwarding service is not enough, and the entity cannot act as its own agent. Changing the agent or office costs $15.

If you form an LLC and want to operate under a trade name, the assumed name filing with the Secretary of State (Form 503) costs $25. An LLC does not file that certificate with the county clerk.

Step 3: Sort out the tax filings

Texas has no state personal income tax and no state corporate income tax, but there are filings that apply to most owners. Work through them before you list.

• Texas franchise tax (LLCs and corporations). The no-tax-due threshold is $2,650,000 in total revenue for the 2026 and 2027 report years. Entities at or below that amount owe no franchise tax, but they still file a Public Information Report with the Texas Comptroller by May 15 each year. The Secretary of State does not collect an annual report fee for this.
• Sales and use tax permit. The Texas state sales tax rate is 6.25 percent. Most businesses selling taxable goods or services need a sales and use tax permit. The permit is issued at no charge and typically takes two to three weeks to process. Ask the Comptroller whether your rental activity requires it.
• Hotel occupancy tax. The city asks for proof that you remit hotel occupancy tax or are registered to do so. Airbnb-only listings are exempt from that proof requirement, but if you also list on another platform or take direct bookings, plan on providing it. Confirm the registration route and the current rate with the Comptroller at https://comptroller.texas.gov/taxes/ and with the City of Houston before you assume a number.

Texas does not issue a general state business license, so you will not find one to apply for at the state level. Your STR permit, meaning the city Certificate of Registration, is the main approval for this activity.

Step 4: Complete the human-trafficking awareness training

The ordinance requires a human-trafficking awareness training certificate. Complete the training before you start the online application so you can upload the certificate without interrupting your session. Save a digital copy and a printed copy, and file the original with your rental records. You will be asked to show it again if the city requests your documentation.

Step 5: Submit the Certificate of Registration

Go to https://houstonstr.org, which is run by the City of Houston's Administration and Regulatory Affairs department. Create an account and enter the information from your materials list in this order:

1. Owner and property details, matching your deed or lease exactly.
2. The emergency contact.
3. Links to every platform listing you plan to use.
4. Your owner authorization letter or lease.
5. The human-trafficking awareness training certificate.
6. Proof of hotel occupancy tax remittance or registration, unless every listing is on Airbnb only.
7. The $275 per year fee, after confirming the current total on the portal.

Review every field before you submit. A mismatched address or owner name is the most common reason for a request for more information. If the portal shows an error or a status you do not understand, call Administration and Regulatory Affairs at 832-394-8802 rather than submitting a second application for the same property.

Do not list the property on any platform until you have a registration number. Operating without a certificate can draw a fine of $100 to $500 per day.

Step 6: Put the registration number on every listing

Once the city issues your certificate, copy the registration number into every platform listing. Each platform needs the number, and the city has said it will begin asking platforms to remove listings that lack a certificate starting January 1, 2027. A listing without the number is a listing at risk of removal.

The ordinance also bars advertising the property as event space. Keep your listing descriptions focused on overnight lodging. Do not describe the home as a venue for parties, weddings, corporate retreats or other gatherings.

Step 7: Calendar your deadlines

Certificates issued by December 31, 2026 expire on December 31, 2027. Put that date in your calendar now, then set a reminder several weeks earlier so you can renew without a gap. Confirm the renewal steps on houstonstr.org when the time comes, because the portal's requirements may change.

Item	Date or timing
Registration portal opened	October 1, 2025
Ordinance adopted	April 16, 2025
Ordinance took effect	January 1, 2026
Platforms asked to remove listings without a certificate	Starting January 1, 2027
Certificates issued by December 31, 2026 expire	December 31, 2027
Texas LLC Certificate of Formation	$300 filing fee, plus any expedite fee
Texas franchise tax Public Information Report	Due May 15 each year to the Comptroller

Tips that save time

• Register before you list. Treat the certificate as the first step in your launch plan, not a cleanup task.
• Match names exactly. Use the same owner name and address on your deed or lease, your registration, your Secretary of State filings and your tax accounts.
• Keep one folder. Store the lease or authorization letter, the training certificate, the registration confirmation, the tax permit and your entity documents together, digital and printed.
• Check the name before you pay for an LLC. A $40 name reservation is cheaper than refiling under a new name.
• Track bookings from day one. Your platform reports and your own ledger should match, which makes hotel occupancy tax and franchise tax filings easier.

Common mistakes to avoid

Mistake	What to do instead
Listing the property before the registration is issued	Wait for the certificate, then add the number to every listing.
Assuming Airbnb-only means no tax filing	Airbnb-only listings skip the proof requirement, but confirm your tax status with the Comptroller and the city.
Looking for a Texas state business license	Texas does not require a general state business license. The city registration is the approval that matters here.
Subletting a rental without the owner's written permission	Get written owner authorization or a lease that expressly allows short-term rental use.
Using a post office box as the LLC's registered office	Use a physical Texas street address where the agent can be served in person during business hours.
Advertising the home as event space	Describe the property as lodging only.
Missing the December 31, 2027 expiration	Calendar the date and renew before the certificate lapses.
Calling the county for a state filing	Use the Secretary of State for LLC and trade name filings. Use the county clerk only for sole proprietor assumed names.

Expected results

A completed registration is what allows you to list a Houston short-term rental on the city's terms. With the certificate in hand and the number on your listings, you can reasonably expect to avoid the $100 to $500 per day penalty for operating without one, and you may keep your listings live when the city begins asking platforms to remove uncertified properties on January 1, 2027.

Booking volume, nightly rates and profit depend on your property, location, season, pricing and management. Nothing in this guide promises any level of income. Treat registration as the cost of entry, then judge the investment on your own numbers with a CPA.

Frequently asked questions

Do I need a Texas state license to run a short-term rental?

Texas does not issue or require a general state business license. The Texas Business Licenses and Permits Guide from the Texas Economic Development and Tourism Office is the state's reference for specific approvals that apply to your activity. The city registration is the approval to confirm first.

Does my county issue a license?

Counties license nothing for this activity except the assumed name filing that sole proprietors make with the county clerk. Confirm the fee with your county clerk.

Do I need an LLC?

The registration requirements in this guide do not include forming an entity. Whether an LLC protects you enough to justify the $300 filing fee and ongoing filings is a question for an attorney and a CPA who know your finances and your lease.

Where do I get help with the business side?

The Texas Small Business Development Center Network offers free advising in many areas. Find your nearest center at https://www.sbdctexas.org/. For questions about the Texas Secretary of State, start at https://www.sos.state.tx.us/corp/index.shtml, and use SOSDirect at https://direct.sos.state.tx.us/acct/acct-login.asp for online filings.

Final checklist

1. Confirm your lease or HOA allows short-term rentals and check zoning and insurance.
2. Choose sole proprietor with an assumed name or a Texas LLC, and make the filings.
3. Set up the sales and use tax permit and confirm hotel occupancy tax status.
4. Complete the human-trafficking awareness training and save the certificate.
5. Submit the Certificate of Registration at https://houstonstr.org and pay the $275 fee.
6. Add the registration number to every listing and avoid event-space advertising.
7. Calendar December 31, 2027 and the January 1, 2027 platform deadline.

If your situation involves several properties, a company entity, a financed property or a lease that may not allow subletting, pay for an hour with a qualified attorney and a CPA before you file. Those conversations cost far less than fixing a registration, a tax filing or a lease dispute after the fact.