Overview: Are STRs allowed in Denison, TX?

Yes—short-term rentals (STRs) such as Airbnb and VRBO are allowed in Denison, Texas. Operability hinges on two primary conditions:

1. The subject property must be zoned appropriately for an STR (Single-Family (SF) or Multi-Family (MF) zoning, or other zones confirmed acceptable by the city); and
2. The STR operator must comply with Denison’s Hotel Occupancy Tax (7%), collected monthly on lodging fees.

There is no city-issued STR permit or mandatory STR-specific inspection identified in the provided sources. However, the standard rental property registration and inspection programs may apply to long-term rentals, not STRs.

How to Start an STR in Denison: Step-by-Step

1. Verify zoning and eligibility

• Use the City of Denison interactive zoning map to confirm whether the property is zoned Single-Family (SF) or Multi-Family (MF).
• If the property is zoned something other than SF or MF, email the Planning office to determine STR eligibility. The city’s FAQ specifically invites inquiry for non-SF/MF cases. Contact: planning@denisontx.gov.

2. Confirm whether any building permits are needed

• STRs do not appear to require a city-issued STR permit in the provided sources. However, if you plan structural alterations, major renovations, or improvements that normally trigger a building permit in Denison, you must obtain those permits through standard city procedures.
• If you are unsure, contact the Building Department through the city’s main line (903-465-2720, option 3).

3. Register for and remit Hotel Occupancy Tax (HOT)

• STR lodging fees in Denison are subject to a 7% HOT.
• Register and set up your tax remittance with Avenu Insights online or by phone. Taxes on the prior month’s fees are due by the 15th of the current month.
• Registration/Support: Avenu Insights (866-240-3665).

4. Maintain compliance with base zoning and neighborhood standards

• While the FAQ indicates SF and MF are appropriate for STRs, always confirm the specific zoning district’s land-use rules, setbacks, parking, and other standards for your property.
• Note: Statewide STR regulation is evolving and varies by municipality; stay engaged with city communications.

5. Optional: Long-term rental registration and inspection programs

• Denison offers a voluntary rental registration program (with a voluntary inspection option) aimed at long-term rentals. It’s not an STR program but may be relevant if you operate both STR and long-term inventory or consider transitioning properties.
• Benefits include trash/disposal incentives and permit discounts; interior inspections are optional and tied to the voluntary inspection track.

Required Documents, Permits, Licenses, and Guidelines

• No STR-specific permit identified in the provided sources; zoning confirmation is the critical gate.
• HOT registration and monthly remittance: required.
• Building permits: only if the STR involves work that would otherwise require a city building permit (e.g., structural changes).
• Optional: Rental Registration Program application (for long-term rental context; not mandatory for STRs).
• Zoning verification: via City of Denison interactive zoning map or email to the Planning office for non-SF/MF zoned parcels.
• Standard compliance: adhere to the zoning district’s standards and Denison’s general ordinances.

Regulations Specific to Denison, Grayson County, and Texas

City of Denison

• Zoning: SF and MF are appropriate for STRs. If the property is zoned otherwise, contact Planning to verify eligibility.
• HOT: 7% levy on STR lodging fees; payable monthly by the 15th (based on the prior month’s collections).
• Registration/Tax Setup: Through Avenu Insights online or by phone (866-240-3665).
• No city-issued STR permit or mandatory STR inspection indicated in the sources.
• Additional context: Denison’s rental registration and inspection program is voluntary and intended for long-term rentals (not STRs), offering incentives and optional inspections.

Grayson County

• No STR-specific county rules were provided in the sources.

State of Texas

• No state-level STR permit or registration is identified in the provided sources. However, Texas localities regulate STRs through zoning and taxation; you must follow applicable local rules where the property is located. The provided THLA update (2018) notes that many Texas cities regulate STRs, but details vary and can evolve rapidly.
• State HOT applies where applicable; Denison’s local 7% HOT must be collected and remitted in addition to state and any other applicable local taxes. Confirm which state and local taxes apply to your specific property and occupancy scenario.

Local Authority Contacts

• City of Denison – Planning & Zoning
  • Email: planning@denisontx.gov
  • Phone: 903-465-2720 (main city line)
• Denison Interactive Zoning Map: denison.maps.arcgis.com/apps/webappviewer/index.html?id=bc2d6a3793cd4defa7d00b3867aa0f26
• Hotel Occupancy Tax (registration and remittance): Avenu Insights (866-240-3665)

Source Links and Direct Access

• City of Denison – Short-Term Rental FAQ (AirBnB): cityofdenison.com/FAQ.aspx?QID=107
• Denison Hotel Occupancy Tax (7%): library.municode.com/tx/denison/codes/code_of_ordinances?nodeId=COOR_CH24TA_ARTIIIHOOCTA
• Avenu Insights – Hotel Occupancy Tax Setup: www.avenuinsights.com/
• City of Denison – Zoning Map: denison.maps.arcgis.com/apps/webappviewer/index.html?id=bc2d6a3793cd4defa7d00b3867aa0f26
• City of Denison – Rental Registration Program Page: www.denisontx.gov/688/Rental-Registration-Program
• Rental Registration Program Information (benefits and structure): www.denisontx.gov/DocumentCenter/View/1762/Rental-Registration-Program-Information-
• City of Denison – Code of Ordinances (zoning reference): library.municode.com/tx/denison/codes/code_of_ordinances?nodeId=COOR_CH28ZO_ARTIIIZODI
• Texas Hotel & Lodging Association – STR Update 2018: texaslodging.com/short-term-rental-str-update-2018/

Notes and practical reminders:

• If your property is not zoned SF or MF, initiate zoning confirmation before listing the STR.
• Align STR operations with zoning standards for parking, setbacks, and neighborhood impacts. The city’s ordinances apply regardless of STR status.
• Because STR rules evolve, revisit the city’s FAQ and Planning contacts for any ordinance updates that may affect eligibility or compliance obligations.