Overview: Are short-term rentals allowed in McAllen, TX?

Yes. Short-term rentals are allowed in McAllen, Texas, under a defined regulatory framework. The City’s Code of Ordinances (Chapter 46, Article VII) regulates short-term rentals of less than 30 consecutive days in residential dwelling units or accessory buildings and requires annual registration, safety standards, a designated 24/7 local contact, monthly hotel occupancy tax reporting, and compliance with city nuisances and noise ordinances. City registration fees apply ($100 per unit), and state hotel occupancy tax obligations also apply.

— Source: City of McAllen Code of Ordinances, Ordinance No. 2023-80; City STR Application form

How to start a short-term rental business in McAllen, TX

1. Confirm zoning and eligibility:

   • The STR must be a residential single-family dwelling unit or accessory building rented for fewer than 30 consecutive days.
   • STRs that are not owner-occupied and associated with an owner-occupied principal residential unit and that offer multiple rooms or units for lease are not permitted under the ordinance.
   • Private deed restrictions (CC&Rs) may prohibit STRs regardless of city allowance.

2. Designate an operator and 24/7 local contact:

   • The owner may act as the operator or designate an agent/representative.
   • A local contact person must be available 24/7 to respond to complaints in person within one hour and take corrective action.

3. Secure the property:

   • Maintain appropriate liability/property insurance for the STR unit.

4. Prepare and submit the city STR registration:

   • Apply annually with the City of McAllen Environmental Health & Code Compliance Department at the McAllen Development Center.
   • Pay the $100 annual registration fee per unit.
   • Submit required documents and information (see “Required documents, permits, licenses, and guidelines” below).

5. Comply with safety and guest communication standards:

   • Install functioning smoke detectors in each sleeping room/space.
   • Provide and display a prominent egress map.
   • Provide renters with a brochure or publication outlining basic standards of conduct and direct them to the City’s website for additional rules.

6. Establish monthly tax compliance:

   • City hotel occupancy tax: file a monthly collection report (even if no rentals occurred), using the City’s required form.
   • State hotel occupancy tax (6%): register with the Texas Comptroller to obtain a state hotel tax permit and remit monthly.

7. Set operating policies:

   • Enforce quiet hours, no outdoor overnight sleeping, and general good-neighbor standards.
   • Monitor and respond quickly to any violations.

8. Annual renewal and recordkeeping:

   • Renew the registration each year, maintain records, and retain compliance documentation.

— Source: City of McAllen Code of Ordinances, Ordinance No. 2023-80; McAllen STR Application; City application notes on taxes and reporting

Required documents, permits, licenses, and guidelines

City of McAllen STR Registration Application (annual):

• Application form (per unit).
• Property information: address, number of bedrooms, occupancy limits (for the unit).
• Owner/operator information: name, address, email, and telephone number.
• HCAD Property ID (Hidalgo County Appraisal District ID).
• Local contact person: name, address, email, and 24/7 phone (must be able to respond in person within 1 hour).
• Site plan, floor plan, and parking plan.
• Copy of the lease if the property is rented.
• Liability insurance and proof of property insurance.
• Emergency contact information (including 24/7 phone and email).
• Signature attesting to accuracy and agreement to remit hotel occupancy taxes.

Safety and guest information:

• Functioning smoke detector in each sleeping room/space.
• Prominently displayed egress map.
• Brochure/publication to renters with minimum standards of conduct and reference to city codes/resources.

Permits and fees:

• City STR registration permit: $100 per unit (annual).
• Annual renewal: $100 per unit.
• State Hotel Occupancy Tax Permit: obtained from the Texas Comptroller (required to collect and remit state hotel occupancy tax; not provided in the sources but widely required by Texas).

Reporting:

• Monthly City hotel occupancy tax collection report (required even if no rentals).
• Maintain guest registry and provide guests with conduct information/standards.

Definitions and scope:

• STR is defined as a residential dwelling unit or accessory building used for temporary/transient stays of fewer than 30 consecutive days.
• Exemptions exist for properties that were already compliant with the City’s hotel occupancy tax regulations as of September 30, 2017 (grandfathered from paying the annual registration fee); however, all entities must still register each individual property.

— Source: City of McAllen Code of Ordinances, Ordinance No. 2023-80; McAllen STR Application; City application penalties/reporting language

Specific regulations (City, County, State)

City of McAllen regulations (Chapter 46, Article VII):

• Definition: STRs include residential dwelling units or accessory buildings used for stays < 30 consecutive days; excludes non-owner-occupied structures not associated with an owner-occupied principal residential unit that seek to offer multiple rooms or units.
• Owner responsibility: The owner remains personally responsible and liable for noncompliance even if committed by agents, representatives, occupants, or guests.
• Registration administration: Handled by the Environmental Health & Code Compliance Department at the McAllen Development Center.
• Annual registration: $100 per unit; valid for one year; a registration number is issued for each property.
• Compliance obligations:
  • Provide renters with conduct brochure and reference to city website/resources.
  • Install smoke detectors in all sleeping areas; display egress map.
  • Inform occupants of city codes and liability for violations.
  • Prohibit excessive noise or disturbances under city Nuisances and Noise ordinances (including decks, porches, balconies, patios, hot tubs, pools, saunas/spas).
  • No overnight outdoor sleeping or outdoor sleeping spaces for rent.
  • No advertising for unauthorized uses.
• Reporting and taxes:
  • Submit monthly City hotel occupancy tax collection reports even if no rentals occurred.
  • Comply with city hotel occupancy tax (HOT) and the 2% City HOT, as applicable.
• Penalties:
  • Violations are Class C misdemeanors punishable upon conviction by a fine not to exceed $500 per offense; each day is a separate offense.
  • Maximum penalty for code violations (fire safety, zoning, public health, sanitation) shall not exceed $2,000.
  • Penalties are in addition to other enforcement remedies the city may pursue under ordinances and state law.
• Revocation:
  • The Environmental Health & Code Compliance Director may suspend/revoke a permit for errors, incorrect information, or violations; if revoked, reapplication for the same property is barred for 12 months.

County (Hidalgo County):

• No county-specific STR rules were identified in the provided sources. City compliance remains primary.

State (Texas):

• Texas Hotel Occupancy Tax: A state tax of 6% applies to STRs. Hosts must register with the Texas Comptroller to obtain a hotel tax permit and remit state hotel occupancy tax monthly. (Required by Texas law; not provided in the sources but standard for STRs.)
• Municipal/local rules can be stricter than state rules; McAllen’s rules are the baseline for operation.

Key limits and compatibility:

• No outdoor sleeping for rent, and STRs must remain compatible with neighborhoods (safety, cleanliness, order).
• Advertising must reflect authorized uses only.

— Source: City of McAllen Code of Ordinances, Ordinance No. 2023-80; McAllen STR Application and penalties; City tax reporting requirements; RedAwning overview confirming state 6% hotel occupancy tax and Texas Comptroller registration

Contact information for the local authority in charge of STRs

Administrative authority:

• City of McAllen Environmental Health & Code Compliance Department
• McAllen Development Center
• 311 N. 15th Street
• McAllen, TX 78501
• Website: www.mcallen.net
• Note: Contact details (phone/email) were not provided in the sources; obtain current phone/email from www.mcallen.net or city offices.

— Source: City of McAllen Code of Ordinances; City STR Application form

Links to source pages (if available)

• City of McAllen Short-Term Rental Application and ordinance references:
  • mcallen.net/docs/default-source/code/short-term-rentals.pdf?sfvrsn=2
• McAllen Code of Ordinances, Ordinance No. 2023-80 (Chapter 46, Article VII — Short Term Rentals):
  • ecode360.com/MC6775/laws/LF2200097.pdf
• Market/regulation overview for McAllen STRs (for context and Texas tax reference):
  • www.redawning.com/pm/market-overview/mcallen-texas
• General investor/manager guidance (compliance tips):
  • www.mcallenpropertymanagementinc.com/blog/a-guide-to-a-successful-short-term-rental-management-in-mcallen-texas

Notes for investors

• Register each unit individually; a single tax ID does not substitute for per-unit registration.
• Maintain a detailed guest registry and thorough communications to avoid violations; noise and nuisance standards are actively enforced.
• The 24/7 local contact requirement is not optional; it is core to McAllen’s enforcement model.
• If a permit is revoked, there is a 12-month reapplication bar for the same property—prioritize compliance and rapid response.