San Antonio STR rules: what investors miss (Oct 2026 update)

San Antonio STR rules: what investors miss (Oct 2026 update)

Michael GonzalesBusiness Member
Real Estate Agent · San Antonio · Member since 2018 · 34 posts · 13 votes

Hello All,

I help investors buy short-term rentals around San Antonio and have been a super host on four of my own short term rentals over about 5 years now. I have heard of, seen and made some of these mistakes before, and these are the high level rules that trip people up most that I wanted to get summarized:

1. Check the HOA before the city. Deed restrictions kill more deals than the city does. Under Tarr v. Timberwood Park (Tex. 2018), "single-family residential" wording alone doesn't ban STRs. An HOA that can amend its rules can still add an outright ban, though. Pull the declaration and every amendment.

2. Type 2 permits are capped. Non-owner-occupied STRs are capped at 12.5% of a block face, with at least one per block face. The street in the address decides the block face, so a corner lot doesn't get you around it. Over the cap, you can apply to the Board of Adjustment for an exception.

3. Permits don't transfer. A buyer has to apply fresh, so don't pay extra for an existing permit. As of Oct 1, 2026, fees are $450 for Type 1 and $1,000 for Type 2, plus surcharges, for a 3-year term.

4. Hotel tax is 16.75%. Airbnb and Vrbo remit the city's share, but you still have to file a monthly report, even at $0. Unpaid tax can cost you the permit.

5. Enforcement has teeth. Three confirmed citations in 3 years revokes the permit, with a 12-month wait to reapply. Fines run $200–$500 a day.

6. Some zoning is off-limits. STRs aren't allowed in C-3, L, I-1 or I-2 zoning, or on properties that got a city housing incentive.

7. Suburbs vary a lot.

  • Effectively banned in residential areas: New Braunfels (upheld by a federal appeals court in 2026 unless its grandfathered), Terrell Hills, Windcrest, Shavano Park and Hollywood Park.

  • Boerne: a permit, 2 guests per bedroom + 2, and 200 ft between rentals.

  • Leon Valley: new 2026 ordinance with 300-ft spacing, a guest cap of 1 per 200 sq ft, and non-transferable registrations.

  • Castle Hills: 25 permits total, 1,000-ft spacing, and the permit ends when the property sells.

  • Helotes and unincorporated Bexar County: hotel tax only.

Hoping this summary will save you some time and headache - happy to talk through specific properties or areas. Has anyone else run into items worth summarizing?

P.S. if all these items check out and you are buying an active short term rental, there are a handful of other items to consider for someone that has facilitated these transitions including some tips / tricks that i have used in the past, which is a topic for another thread.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2d

    Great post! I know there are some San Antonio investors on here but not a lot as its a national forum. I think this post would be great in local SA host groups on Facebook too.

  • Chris ColtonPro Member
    Investor · San Antonio, TX · Member since 2026 · 32 posts · 18 votes
    2d

    Thanks for putting this together, Michael — the permits-don't-transfer point is the one I see people miss most. I started half Airbnb and half midterm here in San Antonio, and I ended up moving to tenants only, because the operations got simpler when the agreements and payment tracking were consistent. Curious — are you seeing more owners make that same shift when the permit math gets tight, or are most still trying to stay short-term?

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    1d

    Michael, this is a really useful breakdown, especially for anyone buying an STR in San Antonio without realizing how much the local rules can affect the deal.

    I'd add one more layer before making an offer: the tax side of the underwriting. Once you've confirmed the property can legally operate as an STR, I'd look at the after-tax return, depreciation, potential cost segregation, and how the actual average stay and participation affect the tax treatment.

    A property can look great on STR revenue alone and still be a very different investment once you run the numbers after operating costs and taxes.

    Appreciate you putting this together. This is the kind of checklist investors should be looking at before they close.

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