Overview: Are Short‑Term Rentals Allowed in San Marcos, TX?

Explicit answer: YES. Short‑term rentals (STRs) are explicitly allowed in San Marcos and are regulated through a city ordinance and permit system. As of April 16, 2024, the city adopted updates that removed the owner‑occupancy requirement and party/gathering prohibitions, while expanding registration citywide (previously limited to residential zones) and introducing clear zoning classifications with distance and notification rules for residential neighborhoods. This change followed a federal circuit court ruling that found owner‑occupancy restrictions unconstitutional. [Source: City ordinance summary and local reporting]

How to Start a Short‑Term Rental Business in San Marcos

San Marcos uses an online application and inspection workflow.

1. Create an account and apply online

• Go to www.mygovernmentonline.org.
• Select “Planning and Zoning,” then “Apply Online.”
• Choose “San Marcos” as the jurisdiction and “Zoning” as the project type.
• Complete the “Home Share Rental Application.”

2. Prepare and submit required documents (see Required Documents below).

3. Pay the permit fee

• $90 application fee.

4. Schedule and pass a safety inspection

• Contact Code Compliance at 512.393.8479 to schedule.
• Permits are issued only after passing the inspection.
• Permits must be renewed annually.

5. Register for Hotel Occupancy Tax (HOT)

• Required before operating.
• Submit a separate HOT registration with the city.
• Proof of HOT registration is typically required to operate.

6. Ongoing compliance

• Maintain guest information in the unit/guest book as specified below.
• Renew your STR permit annually.
• Monitor any ordinance updates. [Source: City STR page]

Required Documents, Permits, Licenses, and Guidelines

Required documents (all must be submitted via the portal unless otherwise noted):

• Warranty Deed (or equivalent proof of ownership; obtain from the County Clerk Office if not available).
• Parking Plan (a clear depiction or written instructions showing where tenants may and may not park).
• Floor and Fire Plan (a simple drawing showing exits from each bedroom and fire extinguisher locations; must be posted in each bedroom; fire escape and floor plans may be combined on a single drawing).
• Emergency Evacuation Plan (written directions for escaping during natural disasters; may be provided in the guest book).
• Emergency Contact Information (name, address, and phone number of designated contact(s) who can arrive at the property within 60 minutes if needed; multiple contacts recommended).

Permits and fees:

• STR permit: $90.
• Safety inspection: Required (schedule via Code Compliance).
• Annual renewal: Required.

Licenses/taxes:

• Hotel Occupancy Tax (HOT) registration: Required; the city maintains a HOT page and requires proof of HOT registration before operating. Collect and remit state and local HOT as applicable.

Practical guidance:

• The city provides templates/examples for the Parking Plan, Floor/Fire Escape Plan, and a Short‑Term Rental Checklist.
• A 5‑pound minimum fire extinguisher is required; clearly indicate extinguisher locations on the Floor and Fire Plan. [Source: City STR page]

Specific Regulations for San Marcos, Hays County, and Texas

San Marcos regulations (effective April 16, 2024):

• Registration: All STRs must register with the city, with annual renewal.
• Limit: One STR permitted per owner within city limits.
• Zoning classifications:
  • Type 1 (Residential Neighborhoods): Minimum 660 feet between STRs; owner must notify all residential property owners within 400 feet.
  • Type 2 (Commercial Neighborhoods): No distance separation between STRs; no neighbor notification required.
• Safety requirements: All STRs must pass a city safety inspection. Typical items include fire extinguishers (5‑lb minimum), smoke detectors, electrical panel access, and general safety compliance.
• Guest information requirements (provide in the unit/guest book): Maximum occupancy; designated parking; quiet hours; restrictions for outdoor facilities (pools, fire pits); and cleanliness/trash requirements and schedules.
• Recent changes: Owner‑occupancy requirement removed; ban on parties/gatherings eliminated (court‑driven change).

Hays County: No separate county STR permitting or licensing framework was identified in the provided content. County rules may apply to property taxation, development, and public health, but these are not STR‑specific programs based on the available sources.

Texas state‑level requirements:

• Hotel Occupancy Tax (HOT): Texas charges a state HOT, and counties/cities may add local HOT. STR operators must register, collect, and remit HOT. This is a separate registration/license requirement from the city STR permit.
• State oversight: The Texas Comptroller administers the HOT program; detailed guidance is available on the Comptroller’s website (see sources below).
• Preemption/local authority: Texas does not impose a statewide ban or general license requirement for STRs; cities have broad authority to regulate. The recent court‑driven change in San Marcos reflects this local authority coupled with constitutional constraints.

Contact Information for the Local Authority in Charge of STRs

Code Compliance (primary STR permitting and inspections):

• Phone: 512.393.8479
• Email: codecompliance@sanmarcostx.gov
• Address: 630 E Hopkins, San Marcos, TX 78666

City of San Marcos (main):

• Phone: 512.393.8000
• Fax: 855.246.9100
• Website: sanmarcostx.gov

Short‑Term Rentals page: sanmarcostx.gov/4537/Short-Term-Rentals [Source: City STR page]

Links to Source Pages

Note: The links below are provided as they appear in the search content. Use them to verify current requirements before acting.

• City STR Portal: www.mygovernmentonline.org [Apply, schedule inspections]
• San Marcos STR Page: sanmarcostx.gov/4537/Short-Term-Rentals [Permitting process and documents]
• Short‑Term Rental Ordinance (Effective 04‑16‑2024): sanmarcostx.gov/DocumentCenter/View/43229/Short-Term-Rental-Ordinance-Effective--04-16-2024 [Full ordinance text]
• Hotel Occupancy Tax (San Marcos): sanmarcostx.gov/697/Hotel-Occupancy-Taxes [Tax registration and information]
• STRProfitMap San Marcos Page: www.strprofitmap.com/regulations/TX/san-marcos [Summary of regulatory framework and market context]
• Express News Report (April 17, 2024): www.expressnews.com/hill-country/article/san-marcos-short-term-rental-rules-limits-19408394.php [Background on ordinance changes and council discussion]
• Texas Comptroller HOT Info: comptroller.texas.gov/taxes/hotel/ [State‑level tax requirements]

Key Takeaways for Investors

• San Marcos explicitly permits STRs and has a clear application/inspection/renewal process.
• Costs are straightforward: $90 permit fee plus inspection; annual renewals required.
• Zoning and neighborhood rules matter: Residential neighborhoods (Type 1) have 660‑foot separation and 400‑foot neighbor notification; commercial neighborhoods (Type 2) do not.
• Safety and guest information: Post and maintain required plans; keep a guest book with occupancy, parking, quiet hours, outdoor facility restrictions, and cleanliness/trash details.
• Taxes: Register for and collect/remit Texas and local HOT; proof of HOT registration is required to operate.
• Post‑2024 environment: Removal of owner‑occupancy and party/gathering restrictions (court‑driven) increases market opportunities; however, registration and safety compliance remain mandatory.