How Much Should a Short Term Rental Permit Cost?

San Antonio short-term rental operators are facing a significant increase in permit fees under the City's proposed FY 2027 budget. The proposed fee for a Type 1 STR permit would increase from $300 to $450, a 50% increase. The Type 2 fee would jump from $450 to $1,000, an increase of 122%.

Those percentage increases understandably get attention. But how do the proposed fees actually compare with what short-term rental operators pay elsewhere in Texas?

We decided to take a look.

Comparing STR Permit Fees Across Texas

Cities structure their STR programs very differently. Some charge annually. Others issue permits for two or three years. Some include inspections in the permit fee, while others charge separately. Some require registration but charge little or nothing at all.

That means simply comparing the advertised permit fee doesn't tell the whole story. An annualized cost provides a better apples-to-apples comparison.

City	STR Permit/Registration Fee	Term	Approx. Annualized Cost
Rowlett	$2,000	1 year	$2,000
Grand Prairie	$480	1 year	$480
Lewisville	$400	1 year	$400
Austin – new license	$836.30	2 years	$418.15
San Antonio – proposed Type 2	$1,000	3 years	$333.33
Houston	$275 + administrative fee	Annual	About $308
Frisco	$300	1 year	$300
Waco – new license	$500 + $100 inspection	Initial	$600 initial
Waco – renewal	$250	Annual	$250
Austin – renewal	$385.30	2 years	$192.65
Seguin – new license	$250	1 year	$250 initial
Seguin – renewal	$150	Annual	$150
San Antonio – proposed Type 1	$450	3 years	$150
College Station – new permit	$100 + $100 inspection	1 year	$200 initial
College Station – renewal	$75	Annual	$75
Fort Worth – new registration	$150	1 year	$150 initial
Fort Worth – renewal	$100	Annual	$100
Denton	$100	1 year	$100
McKinney	$0	1 year	$0

Fees shown are intended as a comparison of standard STR permitting or registration costs and do not include Hotel Occupancy Tax, penalties, failed inspections or every possible ancillary charge. Local requirements and fees change frequently.

The range is striking. Rowlett is clearly at the high end, charging $2,000 annually. Its program also includes quarterly inspections. Lewisville charges $400 annually and requires an onsite inspection before a permit may be issued or renewed. Grand Prairie charges $480, with an inspection included in the permitting process. At the other end, Denton charges $100 annually, while McKinney's annual STR registration program is free.

Austin

Austin is frequently cited as an example of a Texas city with an expensive STR license. A new Austin license currently costs $836.30.

But Austin licenses are valid for two years.

That makes the initial cost about $418 per year. More importantly, the renewal fee is $385.30 for another two years, or about $193 per year.

It is a good example of why the permit term matters when comparing fees among cities.

Where Would San Antonio Fall?

San Antonio currently charges $300 for a Type 1 permit and $450 for a Type 2 permit. Permits are valid for three years.

Under the proposed FY 2027 fee schedule, Type 1 would increase to $450 and Type 2 to $1,000.

A $1,000 permit sounds high, particularly when the current fee is $450. But annualizing the cost changes the comparison.

A $1,000 Type 2 permit valid for three years costs approximately $333 per year.

A $450 Type 1 permit costs $150 per year.

Viewed that way, San Antonio would not be an extreme outlier among Texas cities that regulate STRs. The proposed Type 2 cost would be higher than Houston, Waco, Austin's renewal cost, Fort Worth, Denton and several other cities, but lower than Rowlett, Grand Prairie, Lewisville and the initial annualized cost of an Austin license.

The proposed Type 1 fee would remain relatively modest at $150 per year.

What Does the Fee Cover?

That's where the comparison becomes more difficult. Cities don't necessarily include the same services in their permit fees. Some conduct inspections. Some have dedicated STR enforcement programs. Others have relatively simple registration systems.

San Antonio also separately contracts with Neumo, formerly Avenu Insights & Analytics, to administer Hotel Occupancy Tax collection and provide monitoring and compliance services. That contract is separate from the STR permit fee and is not currently included in the permit-fee cost recovery being discussed.

STRASA understands that the City may establish permit fees to recover the reasonable costs associated with administering and enforcing its STR ordinance. We are still waiting, however, for information showing how the City calculated the proposed $450 Type 1 and $1,000 Type 2 fees and what specific costs are included in those amounts.

That information is particularly relevant to the Type 2 proposal. The Type 1 fee would increase by 50%, while the Type 2 fee would increase by 122%.

Understanding the City's methodology would provide useful context for operators—and help make a more meaningful comparison with cities where inspections or other regulatory services are explicitly included in the fee.

So, Is $1,000 Too Much?

The statewide comparison doesn't provide a simple answer. There is no standard STR permit fee in Texas. Some cities charge very little. Others charge several hundred dollars annually. Rowlett charges $2,000 per year. The regulatory programs behind those fees also vary considerably.

San Antonio's proposed Type 2 increase is substantial. But annualized over the City's three-year permit term, approximately $333 per year is not unprecedented among Texas cities. At the same time, comparing San Antonio with other cities doesn't tell us whether San Antonio's particular fee reflects San Antonio's actual cost of administering its program.

We hope to learn more about that calculation as the budget process continues.

In the meantime, we thought the statewide comparison was worth sharing.

Help Us Build the Texas Comparison

STR ordinances and fees change frequently, and dozens of Texas cities take different approaches to short-term rentals.

If your city isn't included here—or if you see a fee or requirement that has recently changed—let us know. We'd like to continue building this comparison as a resource for Texas STR operators and policymakers.