Overview: Are Short-Term Rentals Allowed in Royse City, TX?

YES — Short-term rentals are permitted in Royse City, Texas. The city currently operates under a low-regulation environment for STRs, with no city-specific ordinances governing the operation of vacation rentals. This creates a business-friendly environment for STR investors, though state-level requirements and county regulations still apply.

How to Start a Short-Term Rental Business in Royse City

Step 1: Verify Zoning Compliance

• Confirm your property is zoned appropriately for short-term rental use
• Review Royse City zoning ordinances at library.municode.com/tx/royse_city/codes/code_of_ordinances
• Check with Development Services department for zoning verification

Step 2: Property Preparation

• Ensure compliance with standard housing and rental regulations
• Maintain property safety and cleanliness standards
• Consider insurance requirements and liability coverage
• Verify HOA restrictions if applicable

Step 3: State Tax Compliance

• Register for Texas state hotel occupancy tax collection
• Collect and remit the required 6% state hotel occupancy tax from guests
• Note: Airbnb does not automatically collect this tax

Step 4: Federal Tax Considerations

• Report STR income on federal tax returns
• Consider consulting with a tax professional for compliance

Step 5: Listing and Operations

• Create professional listings on major booking platforms
• Implement dynamic pricing strategies
• Establish local maintenance and cleaning networks
• Develop guest communication protocols

Required Documents, Permits, Licenses, and Guidelines

Current Requirements:

No city-specific permits or licenses are currently required for STR operations in Royse City. However, the following apply:

State-Level Requirements:

1. Texas Hotel Occupancy Tax Registration
   • 6% state tax collection requirement
   • Monthly remittance to Texas Comptroller

Local Guidelines:

1. Standard Housing Regulations

   • Property safety and cleanliness maintenance
   • Compliance with building codes and standards

2. HOA Considerations

   • Review and comply with homeowner association rules
   • Obtain necessary approvals if required

Recommended Documentation:

• Property insurance policies
• Business liability coverage
• Guest screening procedures
• Emergency contact information
• House rules and regulations

Specific Regulations by Level

Royse City (Municipal) Level:

• No specific STR ordinances currently in place
• General housing and rental regulations apply
• Standard zoning requirements for residential properties
• Business license requirements may apply depending on operation type

Hunt County (County) Level:

NEW REGULATIONS APPROVED: Hunt County has implemented regulations for short-term rental communities, specifically addressing:

County Ordinance Coverage:

• Recreational vehicles (RVs)
• Motor homes and pick-up coaches
• Tiny houses and cottages
• Short-term rental facility communities

Key County Requirements:

• Fire safety standards due to increased fire risk in clustered developments
• Health and safety regulations for vehicle-based accommodations
• Permitting requirements and fees for STR facilities
• Development standards for STR communities

Full County Ordinance: Available at [www.huntcounty.net/upload/page/10268/docs/Hunt Co Short Term Rental Facility Resolution 2022.07.12.pdf](http://www.huntcounty.net/upload/page/10268/docs/Hunt Co Short Term Rental Facility Resolution 2022.07.12.pdf)

County Contact:

• County Development Coordinator: Bryan Toole
• Address: Hunt County Administration Offices
• Phone: Contact through county main number

Texas State Level:

1. Hotel Occupancy Tax (HOT)

   • 6% state tax on short-term rentals
   • Monthly filing and remittance requirements
   • Registration with Texas Comptroller required

2. Business Tax Implications

   • Franchise tax considerations for STR businesses
   • Federal income tax reporting requirements

3. Property Tax

   • Assessed at standard residential rates (no special classification for STR use)

Market Performance and Investment Data

Key Metrics (2025 Data):

• Average Daily Rate: $201
• Occupancy Rate: 36.7%
• Median Annual Revenue: $25,002
• Revenue Growth: 27.7% YoY
• Active Listings: 33 properties

Seasonal Performance:

• Peak Month: July
• Low Month: September
• Peak Season: May-July (44.1% occupancy)
• Low Season: February, August, September (34.6% occupancy)

Best Investment Areas:

• Downtown Royse City
• Lake Ray Hubbard proximity
• FM 548 corridor
• Historic downtown district

Contact Information for Local Authorities

Royse City Municipal Government:

Royse City City Hall

• Address: PO Box 638, 100 W. Main Street, Royse City, TX 75189
• Phone: 972-636-2250
• Website: www.roysecity.com
• Development Services: I Have a Question Form
• Code Compliance: Code Compliance Department

Hunt County Government:

• County Development Coordinator: Bryan Toole
• Website: www.huntcounty.net
• Fire Marshal's Office: Contact for fire safety regulations
• Planning Department: Contact for county development requirements

State-Level Contacts:

• Texas Comptroller: For hotel occupancy tax registration and reporting
• Website: comptroller.texas.gov
• Tax assistance: 1-800-252-5555

Important Links and Resources

Municipal Resources:

• Royse City Code of Ordinances
• Royse City Zoning Maps
• Development Services Department
• Planning & Zoning Information

County Resources:

• [Hunt County Short-Term Rental Facility Resolution (2022)](http://www.huntcounty.net/upload/page/10268/docs/Hunt Co Short Term Rental Facility Resolution 2022.07.12.pdf)
• Hunt County Government Website

Market Analysis:

• AirROI Royse City Market Report

Property Management Resources:

• SummerOS Platform
• Checkmate Rentals

Investment Recommendations

Due Diligence Checklist:

1. Zoning Verification: Confirm STR permitted use in your zoning district
2. HOA Review: Check for rental restrictions and approval requirements
3. Tax Registration: Obtain Texas HOT registration and understand reporting
4. Insurance: Secure appropriate coverage for STR operations
5. County Compliance: If developing STR communities, review county regulations

Market Advantages:

• Low regulatory burden
• Strong revenue growth trajectory
• Growing DFW metro proximity
• Diverse guest appeal (business, leisure, group travel)

Risk Considerations:

• Potential for future city ordinance development
• County regulations evolving for STR communities
• Seasonal demand fluctuations
• HOA restrictions vary by property

This low-regulation environment creates significant opportunities for STR investors while requiring proactive compliance with state and county requirements. The strong market performance data and growing demand indicate positive investment potential for well-managed properties in strategic locations within Royse City.