DetailsCypress, Texas, presents a unique regulatory environment because it is split between two jurisdictions: the City of Houston (annexed areas) and Unincorporated Harris County. Your compliance requirements depend entirely on which jurisdiction the property falls under, which can be verified via the Harris County Appraisal District (HCAD).

Key Requirements (City of Houston Jurisdiction)

• Permit Required: As of January 1, 2026, all short-term rental operators must obtain a valid Short-Term Rental Permit from the City of Houston.
• Owner Authorization: For arbitrage (non-owner occupied) models, the property owner must sign a specific "Property Owner Authorization & Acknowledgement Form" confirming they consent to the short-term rental use.
• Fees: The annual permit fee is $275 plus a small administrative fee.
• Training: Hosts are required to complete an annual human trafficking awareness training course and submit the certificate during registration.

Key Requirements (Unincorporated Harris County)

• No City Permit: Properties outside the city limits do not currently require a municipal short-term rental permit.
• HOA Dominance: Most of Cypress consists of master-planned communities (e.g., Bridgeland, Towne Lake) with strict Homeowners Association (HOA) covenants. Many HOAs explicitly ban rentals shorter than 30 days or enforce "single-family residential use" clauses to prohibit short-term rentals.
• Verification: Operators must verify deed restrictions before signing a lease, as HOA bans supersede county permissiveness.

Operational and Safety Standards

• Life Safety: Regardless of jurisdiction, properties should be equipped with working smoke detectors in every bedroom, carbon monoxide detectors, and fire extinguishers on every level.
• Emergency Contact: City properties must post a 24-hour emergency contact number inside the unit and provide it to the city during registration.
• Insurance: Operators should maintain commercial general liability insurance, as standard renter's insurance typically excludes business activity.

Tax Obligations

• City Limits: Operators must register for and pay Hotel Occupancy Tax (HOT). The total tax rate is approximately 17% (7% City, 6% State, 2% County, 2% Sports Authority).
• Unincorporated: Operators are responsible for the 6% Texas State HOT and the approximate 2-4% Harris County HOT, even if no city tax applies. Airbnb/Vrbo typically collect the State portion automatically, but County taxes often require manual remittance.

Enforcement

• Platforms: Hosting platforms are required to remove listings that do not display a valid City of Houston permit number.
• Fines: Operating without a permit in the city limits can result in fines of up to $500 per day.
• Revocation: Permits can be revoked if a property receives multiple citations for noise, nuisance, or criminal activity.