Free Fredericksburg STR Buyer Checklist
The checklist I walk through with every short-term rental buyer — permits, HOA rules, septic, the numbers and what to ask before you close. Enter your info and it's yours.
Fredericksburg is one of the most rewarding short-term rental markets in Texas, and one of the most regulated. Two homes on the same street can have completely different rental potential depending on zoning, permits and whether they sit inside city limits or out in the county.
I'm not just a Realtor who sells STRs. I own one. So I'll tell it like it is: the right STR is a wonderful investment, and the wrong one can be a very expensive second home. Rest assured, you won't have to figure this out alone. Let's make a plan together.
See which Fredericksburg neighborhoods have short-term rentals →
Fredericksburg & Gillespie County STR Rules
The single biggest question for any Fredericksburg STR is where the property sits.
Inside city limits: any home rented for less than 30 days needs a city short-term rental permit, and zoning decides everything. Since the 2024 ordinance, R1 and R2 neighborhoods don't allow new unoccupied STRs, and R3 doesn't allow any type of STR. The commercial districts (C1, C1.5, C2 and the Central Business District) allow STRs by right. In-town STRs are capped at 12 guests, need one parking space per bedroom, and are inspected every year at renewal.
Existing permits are gold, and they're fragile. Grandfathered permits can keep operating and can transfer to a new owner within 90 days of closing. But the city has denied appeals from owners who let renewals lapse, and in 2026 declined to reissue a permit after a home was moved into a family trust. Before you close, or retitle the home into an LLC or trust, we'll confirm with the city that the permit will carry over.
Owner-occupied options: if you'll live in the home, an Accessory permit (a legal guest house on your homestead) or a B&B permit (rooms in your home) can open up neighborhoods where unoccupied STRs aren't allowed.
Outside city limits: homes in the city's ETJ and out in Gillespie County don't need a city STR permit, but deed restrictions, HOA rules, well and septic capacity, and road access become the things to check. I always pull the restrictions before we write an offer.
Hotel occupancy tax: guests pay 13% in most of the area: 6% to the State of Texas plus 7% to either the City of Fredericksburg (in town and the ETJ) or Gillespie County.
Rules change, so always confirm current requirements with the City of Fredericksburg or Gillespie County. Last reviewed November 2026.
WHAT THE MLS SAYS
I pulled every Fredericksburg sale since 2021 from the MLS to see which neighborhoods actually have permitted STRs. Here are the neighborhoods where they show up most:
Neighborhood | Location | Sold homes with an STR | HOA dues |
|---|---|---|---|
FBG Addition | In town | Common (38 of 98) | None |
South Heights | In town | Common (27 of 56) | Some homes |
Burgdorf | In town | Common (12 of 30) | None |
Carriage Hills | In town | Some (8 of 82) | None |
Cross Mountain Acres | In town | Some (8 of 45) | None |
Fredericksburg Addition | In town | Common (8 of 31) | None |
College Addition | In town | Common (8 of 21) | None |
Firefly RV & Tiny Home Condo | County | Some (5 of 8) | $2,400–$3,000/yr |
Henke | In town | Common (5 of 7) | None |
Sunrise Village | In town | Common (4 of 19) | None |
And some of the most popular neighborhoods where no sold home had an STR permit, which usually means restrictions:
Neighborhood | Location | Sold homes with an STR | HOA dues |
|---|---|---|---|
Stone Ridge | In town | None on record (0 of 111) | $47–$65/yr |
Oaks of Windcrest | In town | None on record (0 of 109) | $125–$150/yr |
Crabapple Grove | In town | None on record (0 of 82) | Some homes |
Heritage Hill Country | In town | None on record (0 of 74) | $1,628–$1,800/yr |
Boot Ranch | County | None on record (0 of 58) | $2,375–$4,000/yr |
Madrona | In town | None on record (0 of 46) | $50–$250/yr |
Straight answers to the questions STR buyers ask me most
Inside city limits, yes. Any home rented for less than 30 days needs a city short-term rental permit. Homes in the city's ETJ and out in Gillespie County don't need a city permit, but they still collect hotel occupancy tax.
It depends on the zoning. Most residential neighborhoods in town no longer allow new unoccupied STRs, so many buyers look for a home with an existing, transferable permit or a property outside city limits. I'll check this before we ever schedule a showing.
Existing permits can transfer to a new owner within 90 days of the sale, after an inspection. We'll build that timeline into the contract so nothing slips.
Talk to me before you do. Moving a permitted home into a trust or entity can count as a change of ownership, and the city has declined to reissue a permit after one. Plan the ownership structure before closing, not after.
Guests pay 13% in most of the area: 6% to the State of Texas plus 7% to either the City of Fredericksburg (in town and the ETJ) or Gillespie County, depending on where the property is.
Up to 12 guests, with one parking space required per bedroom. Out in the county, occupancy is usually set by deed restrictions and septic capacity, so we'll check both.
Yes! Kerrville, Stonewall, Comfort, Harper and Johnson City each have their own rules, and I'm happy to walk you through them.
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Jill has been in the real estate industry for over 18 years. Whether selling, investing, or looking for their dream home, she wants to offer the best buying or selling experience to her clients. Contact her today so she can guide you through the buying and selling process.
