AIRBNB & SHORT-TERM RENTAL RULES

Addison

,
Texas

Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Updated
Oct 2, 2026
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ARBITRAGE VERDICT

Red light: only your own primary residence can be a short-term rental

Addison makes it unlawful to run a short-term rental anywhere that isn't the registrant's primary residence, so subletting a property you rent doesn't fit.[1] Registration is $115 a year and the rules apply in residential zoning districts.[1] Texas H.B. 2464 (2025) doesn't change that, because it says it doesn't stop a city from enforcing a short-term rental ordinance.[2]

Our verdict, based on the sources at the end of this guide.

AT A GLANCE
Non-owner-occupied
Not allowed
Only the registrant's primary residence qualifies[1]
Who holds the permit
The resident applicant
Must live there; the code's "owner" also covers anyone in control of the property[1]
City permit
$115 a year
Valid one year; the late fee is double[1, 3]
Permit cap
None stated
No cap in the code, but a person has only one primary residence[1]
Lodging taxes
13%
6% state plus 7% Town hotel tax (our sum)[4, 5]
Stays of 30+ days
Not an STR
The article covers stays under 30 days;[1] permanent residents skip the hotel tax[4]

Addison allows a short-term rental only at the registrant's own primary residence, so renting a place to sublet isn't an option.[1] The rules cover stays under 30 days in residential zoning districts.[1] Registration costs $115 a year, and you also owe the Town's 7% hotel tax.[1, 4] Texas H.B. 2464, signed June 12, 2025, limits cities on home-based businesses but says it doesn't stop a city from enforcing a short-term rental ordinance.[2, 6]

01

Key requirements

Primary residence only

It's unlawful to operate a short-term rental in any location that isn't the registrant's primary residence.[1] You prove a primary residence with at least two of: vehicle registration, driver's license, Texas ID, voter registration or property tax documents, and a person can have only one.[1]

Registration

Register with the Town before you advertise, offer or rent the property.[1] The application asks for owner contact details, proof of primary residence, a local emergency contact, the maximum number of occupants, a floor plan sketch and a site plan showing legal parking.[1] The Town's registration page says to file through its Citizen Self Service Portal.[3]

Fee and term

Registration is $115 and lasts one year from the date it's issued.[1] The late fee is twice the fee, which the Town's page lists as $230.[1, 3]

Where it applies

Article VIII is written for single-family living units and applies only to short-term rentals in residential zoning districts.[1] We found no Addison code text on short-term rentals in other districts, so ask the Town before relying on one.[1]

Separate rental registration

The Town's 2024 residential rental registration ordinance leaves short-term rentals out, saying they stay under Article VIII.[7]

02

Operational and safety standards

Guest and vehicle limits

Allow no more than two adult guests per bedroom plus two more adults, and never more than ten people, adults and children together.[1] Vehicles are capped at one per bedroom or what the garage and driveway hold without reaching the street, sidewalk or alley, whichever is less.[1] Your ads and rental contracts must state both limits.[1]

Parties and signs

Don't offer the rental as a party venue, and say so in writing in every listing.[1] No outside signs or displays can show the property is a short-term rental.[1]

Safety gear and brochure

Provide working smoke detectors, at least one carbon monoxide detector and alarm, and one fire extinguisher.[1] Give guests a brochure with your 24-hour contact, local parking, noise and trash information, and emergency numbers.[1]

Emergency contact

Name a local emergency contact other than you who lives within 20 miles and can be reached 24 hours a day.[1] That person needs access to the property and your authority to handle complaints and emergencies.[1]

Inspections

The Town can inspect with reasonable notice to check compliance and the International Property Maintenance Code.[1] If it finds a violation, it sets a re-inspection date and the problem must be fixed before the property is occupied.[1]

03

Tax obligations

Town hotel tax

Short-term rentals count as hotels for Addison's hotel occupancy tax, which is 7% of what the guest pays.[4] The operator collects it and must file and pay by the 20th of the month after the stay.[4]

State hotel tax

The state hotel occupancy tax rate is 6% of the cost of a room.[5] The Comptroller says people leasing their houses must collect it the way a hotel does.[5] Added to the Town's 7%, that makes 13% in total (our sum).[4, 5]

Booking platforms

If a platform has an agreement with the Comptroller to collect and remit the state tax, you don't remit it yourself, but you stay responsible for local taxes.[8] If you use another platform or your own site, you collect and remit the state tax.[8]

30-day stays

The Town's tax can't be charged to a permanent resident, meaning someone with the right to use the room for at least 30 consecutive days with no break in payment.[4] The state says a guest should notify the hotel in writing first, or pay tax for the first month.[8]

04

Enforcement

Fines

A violation is punishable by a fine up to $500 for each offense, and each day it continues is a separate offense.[1] Documented advertising of the property as a short-term rental, online or offline, counts as evidence of a violation.[1]

Renewal denial

The Town can deny a renewal if there is reasonable cause to believe you pled no contest to or were convicted of a related violation, or if there are grounds for suspension or revocation.[1] Such violations can include parking, noise, littering, destruction of property or disorderly conduct.[1]

Neighbors and complaints

Within ten days of an approval, the Town notifies all property owners within 200 feet and includes the 24-hour complaint line.[1] Neighbors can call 972-450-2800 in business hours or 972-450-7156 after hours for non-emergencies.[3]

Late hotel tax

Paying the Town's hotel tax late adds a 10% penalty, another 10% after 30 days, and interest of 10% a year starting 30 days after the due date.[4]

State law

H.B. 2464 was signed June 12, 2025 and took effect immediately.[6] It bars cities from banning no-impact home-based businesses or requiring a permit for them, but it says it doesn't prohibit a city from adopting or enforcing an ordinance regulating a short-term rental unit.[2]

Bottom line for arbitrage

Not STR Friendly
|Our take

Skip Addison if your plan is to sublet. The code only lets you run a short-term rental at your own primary residence.

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        Sources

        The bracketed numbers in this guide point here. All sources checked
        Oct 2, 2026
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        More guides in this state

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        Article VIII. Short-Term Rental (Code of Ordinances, Secs. 22-250 to 22-259) | Town of Addison (Municode) | https://library.municode.com/tx/addison/codes/code_of_ordinances?nodeId=PTIICOOR_CH22BU_ARTVIIISHRMRE H.B. 2464, enrolled version (89th Legislature, 2025) | Texas Legislature | https://capitol.texas.gov/tlodocs/89R/billtext/html/HB02464F.htm Short-Term Rental Registration | Town of Addison Development and Neighborhood Services | https://developmentservices.addisontx.gov/Resources/Short-Term-Rental-Registration Chapter 74, Taxation (Article IV, Hotel Occupancy Tax) | Town of Addison (Municode) | https://library.municode.com/tx/addison/codes/code_of_ordinances?nodeId=PTIICOOR_CH74TA Hotel Occupancy Tax | Texas Comptroller of Public Accounts | https://comptroller.texas.gov/taxes/hotel/ History for 89(R) HB 2464 | Texas Legislature Online | https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2464 Ordinance creating Chapter 22, Article X, Residential Rental Registration (Nov 12, 2024) | Town of Addison | https://agendas.addisontx.gov/docs/2024/CM/20241112_7281/5629_FINAL-_Town_of_Addison_Rental_Registration_Ord_11.7.2024.pdf Hotel Occupancy Tax FAQs | Texas Comptroller of Public Accounts | https://comptroller.texas.gov/taxes/hotel/faq.php
        Registration is a flat $115 a year[1, 3] The code sets no cap on the number of registrations[1] Stays of 30 days or more fall outside the short-term rental article[1] Inspections come with reasonable notice to the owner[1]
        Running one anywhere but your own primary residence is unlawful[1] Fines up to $500 per offense, and each day counts as a separate offense[1] Maximum 10 guests and one car per bedroom, or what the garage and driveway hold[1] 7% Town plus 6% state hotel tax on every stay[4, 5]
        Don't plan an Addison sublet. If you would live in the home, ask the Town in writing whether a tenant can register, and get your landlord's OK first.[1] Check the zoning, since the article covers residential districts only and the code text we read says nothing about other districts.[1] Budget $115 a year for registration and about 13% in hotel taxes, filed monthly by the 20th.[1, 4, 5]
        Oct 2, 2026
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