Short-Term Rental Laws in Dallas, Texas

Dallas City Council voted in June 2023 to restrict STRs to non-residential zones only — STRs are prohibited in all single-family residential zoning districts (R-7.5, R-10, R-16, R-1ac, D-1ac, TH-1, TH-2, TH-3, MF-1, MF-2). STRs are permitted only in mixed-use (MU), multi-family (MF-3, MF-4), and commercial zones (CR, CS, MC-1 through MC-5). The ordinance survived initial legal challenges in 2024 but is subject to ongoing Bohannan-line litigation. Operators must hold a city STR registration AND comply with hotel-occupancy-tax remittance.

The 2023 zoning restriction is the binding gate — STRs prohibited in all standard single-family and lower-density multi-family residential zones. Allowed only in MU (Mixed Use), MF-3/MF-4 (higher-density multi-family), CR (Community Retail), CS (Commercial Service), and MC-1 through MC-5 (Multiple Commercial). Existing STR operators in residential zones at ordinance adoption were given an amortization period; check current status with Dallas Code Compliance. Verify parcel zoning before any acquisition.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Dallas Code Compliance administers registration and zoning enforcement. Registration includes designated 24/7 local contact, insurance proof, life-safety certification, and zoning attestation. Operating in a prohibited zone: cease-and-desist + administrative fines up to $2,000 per violation, accumulating daily. The 2023 ordinance is being legally contested under the Bohannan precedent — monitor the Texas Court of Appeals 5th District for current case status.

Combined short-term lodging tax in Dallas is approximately 15.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Texas State HOT 6% + Dallas city HOT 7% + Dallas County venue tax 2% — combined ~15.0% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.