San Antonio Proposes Significant Increase in STR Permit Fees

IMPORTANT: This information reflects what STRASA knows as of August 17, 2026. The

is still under review, and we are continuing to seek clarification from City staff about how the proposed STR fees were calculated. This information may change as we learn more. STRASA will provide updates as additional details become available.

San Antonio short-term rental operators need to pay attention to the City’s FY 2027 budget process.

On Thursday, Aug. 13, City Manager Erik Walsh presented the proposed FY 2027 budget to Mayor Gina Ortiz Jones and City Council. Among the proposed changes is a significant increase in San Antonio’s short-term rental permit fees.

The proposed fees are:

• Type 1 STR permit: $300 to $450 — a 50% increase

• Type 2 STR permit: $450 to $1,000 — a 122% increase

San Antonio STR permits are issued for three years.

These increases have not been adopted. They are part of the proposed budget that City Council will review and ultimately vote on in September.

Where Did the Numbers Come From?

STRASA asked Development Services for clarification.

According to DSD, the fee proposal was developed by the City’s Budget Office.

When San Antonio last updated its STR ordinance, permit fees were increased to help recover the cost of DSD staff associated with administering the STR program.

The new proposal goes considerably further.

According to DSD, the proposed fees are intended to recover costs in three areas:

• DSD staff administering the STR program;

• STRs’ share of the City’s annual contract with Avenu Analytics/Neumo, which includes HOT reporting as well as services that help City staff identify illegal and unpermitted STRs; and

• Costs associated with SAPD responses to problematic STR locations.

Importantly, the SAPD costs are already included in the proposed fee increase. They are not simply being considered as part of a future study.

That gives STR operators considerably more information about what the City proposes to fund through permit fees. It also raises additional questions about how those costs were calculated and allocated.

Cost Recovery — But How Is It Calculated?

STRASA recognizes that the City incurs legitimate costs administering and enforcing its STR ordinance.

DSD staff process permits and oversee compliance. The City uses technology to identify unpermitted STRs and administer aspects of the program. Problematic properties can also require code enforcement and police resources.

The question now is not whether those services cost money. They do.

The question is how much of those costs should appropriately be recovered through permit fees and how the City arrived at $450 for Type 1 and $1,000 for Type 2.

The inclusion of police-response costs deserves particular attention.

Type 1 STRs have an owner living on site and generally generate fewer police and code compliance issues. That helps explain why the City would distinguish between Type 1 and Type 2 properties.

But for any calculation involving police responses, the methodology matters.

How many SAPD responses are actually attributable to STR activity? What qualifies as a “problematic STR location”? Are multiple calls concerning one incident counted separately? Are calls that result in no violation included? How does the City determine the cost of those responses, and how is that cost distributed among thousands of permitted STR operators?

Those are reasonable questions when police-response costs are being incorporated directly into the price of an STR permit.

There Is Another Question About Unpermitted STRs

The Avenu Analytics/Neumo allocation raises another issue.

Part of the service being funded through the proposed permit increase helps the City identify illegal and unpermitted STRs.

Permitted operators have a strong interest in effective enforcement against operators who ignore the ordinance. Those properties create unfair competition for businesses that obtain permits, collect and remit required taxes, and follow City regulations.

At the same time, the City should be transparent about how much of the Avenu/Neumo contract is being allocated to permitted STR operators and how that amount was determined.

Why This Matters Now

San Antonio is developing the FY 2027 budget during an unusually difficult financial year, with the City confronting a substantial General Fund shortfall.

STRASA now knows that the proposed STR fee amounts were developed by the Budget Office and that the increase is intended to recover a broader range of STR-related City expenses than the current fee.

What we do not yet have is the underlying calculation.

How much is allocated for DSD staff? What is STRs’ share of the Avenu/Neumo contract? What amount has been assigned to SAPD responses? How were those costs divided between Type 1 and Type 2 permits? What assumptions did the Budget Office use about the number of permits that will generate the projected revenue?

Those numbers matter.

This Is the Time to Participate

The proposed fees are not final. The City is holding community budget meetings throughout San Antonio before City Council adopts the FY 2027 budget.

STRASA encourages short-term rental operators to attend the meeting in their own City Council district and participate in the process.

You do not need to make a speech or simply tell Council that you oppose higher fees.

Ask for the numbers.

A good question is:

Can the City provide the cost-recovery calculation used by the Budget Office to establish the proposed $450 Type 1 and $1,000 Type 2 STR permit fees, including the amounts allocated for DSD staff, Avenu/Neumo, and SAPD responses?

STRASA has consistently supported responsible STR operation, permitting, Hotel Occupancy Tax compliance, and reasonable enforcement of San Antonio’s STR ordinance.

That includes effective enforcement against illegal and problematic STRs.

It is equally reasonable to expect the City to show permitted operators how a regulatory fee that will more than double for Type 2 properties was calculated, which costs are being recovered, and how those costs were allocated.

STRASA will continue asking those questions and sharing information as the FY 2027 budget process moves forward.

Community budget meetings:

Date	Time	District	Location
Mon., Aug. 17	6:30 p.m.	District 2	Wheatley Heights Sports Complex, 200 Noblewood Dr., 78220
Mon., Aug. 17	6:30 p.m.	District 7	Doris Griffin Senior Center, 6157 NW Loop 410, 78238
Tues., Aug. 18	6:30 p.m.	District 3	Southside Lions Senior Center, 3303 Pecan Valley Dr., 78210
Tues., Aug. 18	6:30 p.m.	District 6	Ron Darner Parks & Recreation Headquarters, 5800 Historic Old Hwy. 90 W., 78227
Wed., Aug. 19	6:30 p.m.	District 4	Robinette Community & Senior Center, 1423 S. Ellison Dr., 78245
Wed., Aug. 19	6:30 p.m.	District 9	Walker Ranch Senior Center, 835 W. Rhapsody Dr., 78216
Thurs., Aug. 20	6:30 p.m.	District 8	Phil Hardberger Urban Ecology Center, 8400 NW Military Hwy., 78231
Sat., Aug. 22	10:30 a.m.	Youth Town Hall	San Antonio Food Bank, 5200 Historic Old Hwy. 90 W., 78227
Mon., Aug. 24	6:30 p.m.	District 5	Las Palmas Branch Library, 515 Castroville Rd., 78237
Mon., Aug. 24	6:30 p.m.	District 10	Northeast Senior Center, 4135 Thousand Oaks Dr., 78217
Tues., Aug. 25	6:30 p.m.	District 1	Central Library, 600 Soledad St., 78205