Politics

Waco City Council Approves Short-Term Rental Ordinance, Matching Standards in Peer Texas Cities

The ordinance requires permits and occupancy caps for short-term rentals in Waco starting September 1, directly affecting property owners and neighbors in central neighborhoods.

By Waco Policy Desk · Published July 8, 2026

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. The Daily Waco is part of The Daily Network and follows our reasonable editorial care.

Waco City Council Approves Short-Term Rental Ordinance, Matching Standards in Peer Texas Cities — Photo by Openverse / rawpixel (cc0)

The Waco City Council voted 6-1 on July 8 to enact a new short-term rental ordinance that requires operators to register with the city, pay an annual fee and adhere to a 30-day occupancy limit per guest. The measure applies to all residential properties listed on platforms such as Airbnb and VRBO within city limits.

City staff presented the ordinance after reviewing similar rules adopted by Dallas in 2023 and Austin in 2024. The vote came during the council's regular meeting at Waco City Hall, where members cited the need to update local code before the fall tourism season.

Effects on Waco households and property owners

Under the new rules, owners of single-family homes used for short-term stays must display a city-issued permit number in all listings and maintain a local contact reachable within one hour. Residents in the Baylor University area and downtown historic districts, where listings are concentrated, will receive notice of any permit applications within 300 feet of their property. City code enforcement officers will handle complaints through the existing 311 system.

Local records show 452 active short-term rental listings in Waco as of June 2026. The $200 annual permit fee is set at the same level Dallas charges and $50 below the Austin rate. Revenue from the permits is projected to cover two additional code enforcement positions in the fiscal 2027 budget.

Next steps for implementation

City staff will begin accepting permit applications on August 1 through an online portal. Operators who fail to register by September 1 face fines starting at $500 per day. The ordinance also directs the planning department to report back to the council in January 2027 with data on compliance and complaint volumes.

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