New Braunfels Short-Term Rental Ordinance: 2026 Guide
- Jun 20
- 15 min read
The New Braunfels short-term rental ordinance is one of the most restrictive in the Texas Hill Country region, banning STR operations in all residential zoning districts and requiring a Special Use Permit in eligible non-residential zones. At Stay In The Heart of Texas, we manage properties in New Braunfels and work directly with owners navigating this regulatory landscape: and the single most expensive mistake we see is listing a property before confirming its zoning eligibility. If your property sits in a residential zone, the current ordinance prohibits short-term rentals entirely, regardless of what your neighbors are doing on Airbnb or VRBO.
The New Braunfels STR ordinance (Section 144-5.17 of the Code of Ordinances) bans short-term rentals in all residential zoning districts; only non-residential zones with an approved SUP may legally operate.
The initial permit fee is $206; annual renewal is $128, paid before scheduling your required fire inspection through the Online Permit Portal.
As of February 1, 2026, Hotel Occupancy Tax filings moved to the Rentalscape portal (portal.deckard.com): operators still using the old system need to migrate immediately.
The combined HOT rate in New Braunfels is 13%: 7% local plus 6% state, due by the 20th of each month for prior-month collections.
A Fifth Circuit appeal in Marfil v. City of New Braunfels is actively challenging the residential ban: the outcome could change who can legally operate an STR in the city.
New Braunfels drew over 6 million visitors in 2026, with average STR daily rates of $337: $348, making compliance worth the effort for eligible properties.
New Braunfels is not a permissive market. The city originally passed its STR restrictions in 2011, and while incremental updates have refined the operational requirements, the foundational residential ban has remained in place for over a decade. In 2026, the regulatory environment has grown more specific, not more lenient. The Rentalscape portal transition, escalating HOT penalties, and an active federal appeal have all added new complexity for owners trying to operate legally and profitably.
This guide covers every compliance requirement in effect as of 2026, the specific changes introduced this year, the ongoing legal challenge that could reshape the ordinance, and a practical compliance checklist you can use before your first guest checks in. Whether you own a property near Schlitterbahn, along the Comal River corridor, or elsewhere in the New Braunfels metro, understanding the exact rules that apply to your specific parcel is the starting point for every other decision.
Does New Braunfels Allow Airbnb and Short-Term Rentals?
New Braunfels does allow short-term rentals, but only in specific non-residential zoning districts with an approved Special Use Permit. The city explicitly prohibits STR operations in all residential zoning areas, which covers the majority of the housing stock in New Braunfels. This means most homes, cabins, and residential properties listed on Airbnb or VRBO within the city limits are technically operating without authorization under current city code: a risk that grows more significant as enforcement systems become more sophisticated in 2026.
What Exactly Does the Ordinance Define as a Short-Term Rental?
Under New Braunfels STR Ordinance Section 144-5.17 of the Code of Ordinances, a short-term rental is defined as a one- or two-family dwelling rented for overnight lodging for fewer than 30 consecutive days. This definition is deliberately narrow. Hotels, motels, bed and breakfasts, resort properties, apartment buildings, and stays of 30 days or longer are all excluded from the ordinance's scope and regulated separately. If you rent a single-family home or a duplex-style property for less than a month at a time, this is the ordinance that governs your operation.
Where Are STRs Permitted in New Braunfels?
Short-term rentals are permitted only in non-residential zoning districts in New Braunfels, and only with an approved SUP. Even within non-residential zones, the ordinance carves out exceptions: C-4, C-4A, and C-4B commercial districts explicitly exclude STR operations. Properties located in the floodway are also prohibited from STR use: this is distinct from the 100-year floodplain, so owners should verify their specific flood zone designation using the City of New Braunfels Interactive Flood Zone Map before investing in permitting.
In practice, eligible non-residential zones near major visitor destinations like the Comal River and the Schlitterbahn area tend to attract the most STR activity. If you are evaluating a property for STR potential in New Braunfels, zoning verification at the city's planning department is the first step before any other investment of time or money.
What Are the Step-by-Step Permit Requirements for New Braunfels STR Owners?
Registering a short-term rental in New Braunfels requires completing a multi-step application process through the city's Online Permit Portal, paying the required fees, submitting supporting documentation, passing a fire and life-safety inspection conducted by the Fire Marshal's Office, and then maintaining annual compliance through renewal inspections. Skipping any single step leaves an operator without a valid permit, which exposes the property to code enforcement and potential HOT tax liability.
Required Documents and Fees at a Glance
The initial STR permit application fee is $206, which covers the application review, fire inspection, and technology fees as a single combined payment. You submit this through the New Braunfels Online Permit Portal, along with a required document package that includes:
Proof of ownership (recorded deed)
Emergency contact information for a local contact person available 24 hours a day, 7 days a week
Letter of authorization, if a property manager will be acting on your behalf
Property site plan and floor plan
Proof of commercial general liability insurance with a minimum of $500,000 per occurrence
Tenant Notification Sheet with Utility Rate Information
One operational requirement that trips up many first-time applicants: every permitted STR unit must display a decal at the property entry that shows emergency contact information. This is not optional. The city uses this decal as both a guest safety tool and a visible compliance indicator during code enforcement sweeps.
Annual Renewal and Life-Safety Inspection Process
The annual renewal fee is $128, paid through the Online Permit Portal before scheduling your inspection. The Fire Marshal's Office conducts life-safety inspections as a condition of renewal each year. These inspections verify smoke detector placement, egress requirements, and other basic safety standards. Failing an inspection does not automatically revoke your permit, but operating with an expired permit does create immediate compliance risk.
From our experience supporting property owners in New Braunfels, the renewal window is the most commonly missed deadline. Set a calendar reminder at least 30 days before your permit anniversary date: the city does not automatically remind you, and operating with an expired permit is treated the same as operating without one.
What Changed in 2026: The Rentalscape HOT Tax Portal Transition
The most operationally significant change in 2026 for New Braunfels STR owners is the mandatory transition to Rentalscape, the city's new HOT tax payment portal operated by Deckard Technologies. Effective February 1, 2026, the city discontinued its prior processing system and requires all Hotel Occupancy Tax filings to move through the Rentalscape platform. Operators who had accounts in the previous system need to create a new account at portal.deckard.com and re-register their property information to avoid a filing gap.
How the New HOT Filing System Works
Hotel Occupancy Tax in New Braunfels applies to short-term rental stays costing $2.00 or more per day. The local rate is 7% of gross receipts. The State of Texas levies a separate 6% HOT through the Texas Comptroller's office, bringing the combined tax burden to 13% on qualifying stays.
HOT filings and payments are due on the 20th day of each month for the prior month's collections. For example, revenue collected during August must be reported and paid by September 20th. Even if you had zero rental activity in a given month, you must still file a $0 return. Skipping a zero-revenue month is treated as a missed filing.
The late penalty structure escalates quickly and is worth understanding before you set up your remittance schedule:
Days Late | Penalty |
Day 1 | $50 flat penalty |
Day 31 | $75 flat penalty |
Day 61 | $100 flat penalty |
Day 91+ | 15% of assessed HOT plus potential misdemeanor charges |
Within the Rentalscape portal, ACH bank transfers carry no transaction fee. Credit card payments incur a 2.75% merchant service fee. For most operators remitting several hundred dollars per month, that fee difference adds up quickly across a year. Set up ACH from the start.
No competitor content currently explains this portal migration in any operational detail. If you previously paid HOT through the city's prior system and have not yet created a Rentalscape account, you may have outstanding unfiled months in 2026 without realizing it. The city's enforcement posture around HOT compliance has grown more systematic, not less, since adopting Rentalscape's monitoring tools.
What Are the Quiet Hours and Operational Rules in New Braunfels?
Operational rules for short-term rentals in New Braunfels extend beyond the permit and tax requirements and govern day-to-day guest behavior and property management obligations. The city's STR ordinance establishes specific standards for occupancy limits, parking, and ongoing owner responsibilities that directly affect how you manage your listing and communicate house rules to guests.
Occupancy Limits, Parking, and Insurance Requirements
Maximum occupancy under the ordinance is set at two adults per sleeping area, plus two additional adults per property. A property with three bedrooms can legally accommodate up to eight adults. This formula applies to adults specifically: the ordinance does not cap children in the same way, though the practical constraint is sleeping capacity.
Parking requirements mandate a minimum of one off-street parking space per sleeping area, not counting garage spaces. A three-bedroom property therefore needs at least three dedicated off-street parking spots available for guests. Properties that rely solely on street parking to meet this requirement do not comply.
The $500,000 per occurrence commercial general liability insurance requirement deserves particular attention. Standard homeowner's insurance policies do not cover short-term rental commercial activity. You need a separate commercial policy or a rider specifically endorsing STR use. Airbnb's Host Protection Insurance does not satisfy this city requirement on its own: it supplements but does not replace a standalone commercial policy.
Regarding quiet hours specifically: the city's ordinance does not set a single standardized quiet hour window applicable to all STRs, but it does require the posted emergency contact to be available to respond to neighbor complaints and disturbances around the clock. Most operators in the New Braunfels market set quiet hours between 10 p.m. and 8 a.m. in their house rules as a practical measure to protect their permit status and avoid code enforcement calls.
What Is the Loophole Around the New Braunfels STR Ordinance?
There is no clean legal loophole around the New Braunfels short-term rental ordinance for residential properties. Owners who search for one are typically hearing about the ongoing constitutional challenge to the residential ban, which the Texas Public Policy Foundation is litigating in federal court. That case is a legal challenge, not a workaround, and operating in violation of the ordinance while the case proceeds still carries code enforcement and HOT liability risk. The practical "loophole" that some owners reference is operating under the 30-day threshold definition: stays of 30 consecutive days or longer are not regulated as short-term rentals under Section 144-5.17, placing them outside the ordinance entirely.
The Marfil v. City of New Braunfels Case and Fifth Circuit Appeal
Marfil v. City of New Braunfels refers to the federal lawsuit filed by a group of STR owners including Rafael Marfil, Verge Productions LLC, Enrico Marfil, Naomi Marfil, Korey A. Rholack, Daniel Olveda, and Douglas Wayne Mathes, represented by the Texas Public Policy Foundation. The plaintiffs argue that the city's residential STR ban violates both the U.S. Constitution and the Texas Constitution by infringing on fundamental property rights.
In January 2026, the federal district court granted the city's motion for summary judgment, ruling that the ordinance satisfies both constitutional frameworks. The Texas Public Policy Foundation filed an appeal with the Fifth Circuit Court of Appeals in April 2026, arguing the ban constitutes an unconstitutional infringement on property ownership. The Reason Foundation filed an amicus brief in the Fifth Circuit case citing Cedar Point Nursery v. Hassid (2021) and Zaatari v. City of Austin (2019) as supporting precedents for the property rights argument.
A notable discovery finding from the case: despite the city's stated rationale that STRs create nuisance conditions, the city had issued zero nuisance citations against STR properties in New Braunfels when discovery was conducted. City Attorney Ryan Greene has committed to vigorously defending the ordinance at the Fifth Circuit. As of 2026, the appeal is pending, and no ruling timeline has been publicly confirmed.
For additional news coverage of the appeal filing, the Fox San Antonio report from April 2026 provides a useful overview of both sides' positions.
What a Ruling Either Way Would Mean for Owners
If the Fifth Circuit rules in favor of the plaintiffs, the residential STR ban would likely be invalidated or remanded for reconsideration, potentially opening significant portions of New Braunfels to legal STR operation for the first time since 2011. Existing permitted STRs in non-residential zones would retain their permits, and the SUP requirement in residential zones would face immediate legal pressure.
If the Fifth Circuit upholds the city's ordinance, the residential ban remains fully in force and the path for constitutional challenge narrows considerably. The city would likely use that outcome to strengthen enforcement of existing violations.
The practical recommendation for 2026: do not make significant investment decisions based on the anticipated outcome of the appeal. Operate within the current ordinance. If you own a property in a residential zone, consult the city's planning department about zoning change possibilities or evaluate whether a 30-plus-day rental model fits your investment goals while the case proceeds.
How Does the New Braunfels STR Market Perform Despite the Restrictions?
The New Braunfels short-term rental market produces strong revenue for eligible properties despite its restrictive regulatory environment. According to data from RedAwning and third-party STR market analysis, the average daily rate for short-term rentals in New Braunfels runs approximately $337: $348, with an average annual revenue of roughly $36,000 per property and an occupancy rate of approximately 43%. These figures reflect a competitive but constrained supply environment created partly by the permit restrictions themselves.
The demand side is not in question. According to the New Braunfels Convention and Visitors Bureau, over 6 million people visited New Braunfels in 2026. The city's hospitality industry generates approximately $1.3 billion in annual economic impact, with hospitality accounting for 31.4% of total employment. Wurstfest alone drew over 240,000 visitors in 2026, and 14 signature annual events collectively attracted close to 1.5 million fall and holiday visitors.
Summer remains the peak demand period, driven by river tubing on the Comal and Guadalupe Rivers and Schlitterbahn Waterpark. But the market is diversifying. Fall and winter visitation grew 6% from 2023 to 2026 as signature events extended the visitor calendar beyond the traditional summer season. For STR owners with permitted properties, this trend means a longer viable booking window and reduced dependence on the June: August peak.
The properties Stay In The Heart of Texas manages in New Braunfels, including the Texas Haus near downtown and Schlitterbahn and the Water Spray Lane property along the I-35 corridor, reflect exactly the visitor profile the market attracts: a mix of leisure travelers, families, and business travelers moving between San Antonio and Austin. That location advantage translates directly into year-round booking potential that flat-rate pricing consistently undervalues. AirDNA market data supports the case for dynamic pricing in event-driven markets like New Braunfels, where demand can shift dramatically around Wurstfest, Comal River season weekends, and holiday periods. You can also explore some of the area's best must-see museums in New Braunfels and dog-friendly destinations: the kind of local context that drives repeat bookings and stronger guest reviews when your listing communicates it well. Similarly, if you want to understand what draws guests back to the broader Hill Country region, our guide to things to do at Canyon Lake illustrates the area's year-round recreational appeal.
Before You List: STR Compliance Checklist for New Braunfels Owners
Before accepting a single booking in New Braunfels, every STR operator should complete the following steps in order. Missing any item leaves the operation legally exposed and potentially subject to HOT penalties from the first night of revenue.
Verify zoning eligibility. Confirm your property is in a non-residential zoning district. Contact the New Braunfels Planning Department directly if you are unsure. Do not assume based on neighboring activity.
Check flood zone status. Use the city's Interactive Flood Zone Map to confirm the property is not in the floodway, where STRs are prohibited.
Obtain commercial liability insurance. Secure a commercial general liability policy with at least $500,000 per occurrence coverage. Confirm in writing with your insurer that the policy covers short-term rental activity.
Apply for your SUP. Submit a Special Use Permit application to the city's planning department as a prerequisite to STR registration in non-residential zones.
Register through the Online Permit Portal. Pay the $206 initial fee and submit all required documents: deed, floor plan, site plan, emergency contact, insurance proof, letter of authorization if applicable, and Tenant Notification Sheet.
Schedule and pass the fire inspection. The Fire Marshal's Office conducts life-safety inspections as part of permit issuance. Address any deficiencies before your first guest arrives.
Post the emergency contact decal. Display the required decal with emergency contact information at the property entry. This is a physical compliance indicator the city uses during enforcement checks.
Create your Rentalscape account. Register at portal.deckard.com to handle HOT tax remittance. File monthly returns by the 20th even in zero-revenue months.
Set guest occupancy limits in your listing. Configure your Airbnb or VRBO listing to cap at two adults per sleeping area plus two additional adults. Do not allow bookings that exceed permitted occupancy.
Confirm parking availability. Ensure at least one off-street parking space per bedroom is available to guests, excluding garage spaces if they are inaccessible to guests.
Frequently Asked Questions About the New Braunfels STR Ordinance
Does New Braunfels allow Airbnb?
New Braunfels allows Airbnb and VRBO-style short-term rentals only in non-residential zoning districts with an approved Special Use Permit. The city's ordinance bans STR operations in all residential zones, which includes most single-family neighborhoods. Properties in eligible commercial zones must complete the full permit registration process, including a fire inspection and HOT tax registration, before accepting bookings.
What is the loophole for short-term rentals in New Braunfels?
There is no legal loophole for operating a short-term rental in a residential zone in New Braunfels. The most cited workaround is renting for 30 consecutive days or longer, which places the arrangement outside the STR ordinance's scope entirely. An ongoing Fifth Circuit appeal (Marfil v. City of New Braunfels) challenges the residential ban as unconstitutional, but until the court rules, the ban remains in full effect and operating in violation carries enforcement and HOT penalty risk.
What are the quiet hours in New Braunfels for short-term rentals?
The New Braunfels STR ordinance does not establish a single mandated quiet hour window applicable to all permitted short-term rentals. However, the ordinance requires a local emergency contact to be available 24/7 to respond to noise complaints and disturbances. Most operators set quiet hours between 10 p.m. and 8 a.m. in their house rules as a practical measure to comply with the city's general noise ordinance and to protect their STR permit from complaint-driven enforcement actions.
What is the difference between an Airbnb and a short-term rental in New Braunfels?
In New Braunfels, "short-term rental" is the legal regulatory term defined in the city ordinance as a one- or two-family dwelling rented for overnight lodging for fewer than 30 consecutive days. Airbnb is simply a booking platform through which short-term rentals are marketed. The ordinance applies to the property and rental arrangement, not to the platform used. A property listed on Airbnb, VRBO, or any other channel must comply with the same city permit requirements.
How much is the New Braunfels STR permit fee?
The initial STR permit fee in New Braunfels is $206, covering the application review, fire inspection, and technology fees combined. The annual renewal fee is $128, paid through the Online Permit Portal before scheduling the required life-safety inspection with the Fire Marshal's Office. These fees are in addition to any Special Use Permit costs associated with the non-residential zoning approval process.
What HOT tax rate applies to New Braunfels short-term rentals?
New Braunfels short-term rentals are subject to a 7% local Hotel Occupancy Tax on gross receipts from stays costing $2.00 or more per day. The State of Texas levies an additional 6% HOT separately through the Texas Comptroller's office. The combined rate is 13%. As of February 1, 2026, local HOT payments must be filed through the Rentalscape portal (portal.deckard.com) by the 20th of each month for prior-month collections.
Can I manage a New Braunfels short-term rental remotely?
You can manage a New Braunfels STR remotely, but the ordinance requires a designated local contact person who can respond to emergencies and neighbor complaints 24 hours a day, 7 days a week. This person does not need to be the property owner, but they must be reliably reachable and capable of physically responding to the property when needed. Property management companies operating in New Braunfels can fulfill this requirement as part of a management agreement.
How to Stay Compliant and Maximize Your New Braunfels STR Investment
The New Braunfels short-term rental ordinance creates a high compliance bar, but for owners with eligible properties, that bar is also a competitive advantage. Fewer legally operating STRs means less supply pressure on nightly rates for the properties that do qualify. The city's $337: $348 average daily rate reflects a market where demand consistently runs ahead of permitted supply, particularly during Wurstfest, summer tubing season, and the growing fall event calendar.
Operating legally in this market requires getting the zoning verification, SUP process, permit registration, annual inspections, and HOT remittance right from the beginning. The Rentalscape portal transition in 2026 added one more system to manage, and late HOT penalties escalate fast enough to materially affect net revenue for small operators with a single property.
Managing these compliance obligations while simultaneously optimizing occupancy, adjusting rates for event-driven demand, and maintaining guest communication is genuinely a full-time operational challenge. That is the reality for most self-managing owners in New Braunfels, and it is exactly the kind of complexity where professional management pays for itself. Property management fees in the New Braunfels market typically range from 10% to 30% of gross revenue; for most operators, that cost is recovered through better pricing strategy alone, before accounting for the time value of not managing guest communications at 11 p.m. on a Wurstfest Saturday.
If you own a property in New Braunfels and want to operate it as a short-term rental with confidence in your compliance, pricing, and guest experience, the team at Stay In The Heart of Texas handles the operational weight so your investment actually performs the way you intended. From permit documentation support and HOT remittance coordination to dynamic pricing and guest communication, we manage properties in this exact market. Reach out at stayintx.com to start the conversation.
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