Where short-term rentals are allowed in Granbury, TX
Granbury draws its line around the old town. Short-term rentals and hosted bed and breakfasts are limited to properties inside the Historic Preservation Overlay and the Historic Compatibility Overlay — two districts, and nothing outside them. Within those, a rental in a residential district is capped at three bedrooms and must provide a parking space for each one. The permit has to exist before you use the property, allow it to be used, or even advertise it, and no permit or renewal issues until the city has inspected the premises.[3]
Every rule below links to the official source it comes from, verified September 20, 2026.
Can you rent short term in Granbury?
Your zoning decides
What you apply for: Short-term Rental and Bed & Breakfast, Hosted permit
- Seasonal homes
- 98
- Housing units
- 6,134
- Residents
- 12,136
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleAllowed by zone
- City feeNone published
- Tax on each staySet locally
- Seasonal homes16 per 1,000
Granbury short-term rental permit
Granbury requires an owner to hold a valid, active short-term rental permit from the city before using the premises as a short-term rental, allowing them to be so used, or advertising them as such. Every short-term rental and hosted bed and breakfast needs the permit, a certificate of occupancy, and a health permit where food is prepared or served on site. The use is geographically confined: short-term rentals and hosted bed and breakfasts are limited to properties within the city's Historic Preservation Overlay district and Historic Compatibility Overlay district. In residential districts a short-term rental is limited to three bedrooms and must provide one parking space per bedroom. The owner must designate a local responsible party and carry host protection or other liability insurance commensurate with the operation, providing cover of up to $1 million per occurrence, with the certificate of insurance on file with the Administrator. No permit or renewal is approved until the city has inspected the premises and found them compliant with the minimum health and safety requirements for use and occupancy, and hotel occupancy taxes are due from hosted and un-hosted rentals alike.[3]
What Granbury asks of you
An owner must hold a valid, active short-term rental permit before using the premises as a short-term rental, allowing such use, or advertising it.[3]
Every short-term rental and hosted bed and breakfast needs the permit, a certificate of occupancy, and a health permit where food is prepared or served on site.[3]
The use is limited to properties within the Historic Preservation Overlay district and the Historic Compatibility Overlay district.[3]
In residential districts, a short-term rental is limited to three bedrooms and must provide a parking space for each bedroom.[3]
The owner designates a local responsible party and carries host protection or other liability insurance giving cover of up to $1 million per occurrence, with the certificate on file with the Administrator.[3]
No permit or renewal is approved until the city has inspected the premises and found them compliant with the minimum health and safety requirements for use and occupancy.[3]
What Texas asks wherever you host
These rules apply at this address whatever the city decides.
Texas issues no state short-term rental licence. The statewide obligation is the hotel occupancy tax, and the Comptroller applies it to houses, condominiums and apartments as well as hotels.[1]
The state rate is 6 percent on a room costing $15 or more each day. Local hotel taxes reach further down, to sleeping rooms costing $2 or more each day, and the local taxing authority collects them itself.[1]
A guest who stays thirty or more consecutive days without interruption becomes a permanent resident and is exempt. Written notice of that intention makes the exemption run from the notice date; any interruption voids it.[2]
What a guest pays on top of your nightly rate in Granbury
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| Texas state hotel occupancy tax[1] | 6% | The state revenue department |
| Granbury hotel occupancy tax[3] | Not published | The city |
The city is explicit that hotel occupancy taxes are due from hosted and un-hosted short-term rentals alike, and from hosted bed and breakfasts, inside the city limits.[3]
How short-term rental taxes work for US hostsWhat the census counts
How much of Granbury is already a second home
The Census Bureau counts 98 of Granbury's 6,134 homes as vacant for seasonal, recreational or occasional use — 16 out of every 1,000. That ranks Granbury 12th of the 13 Texas cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 12th of 13
- Share of housing
- 16 per 1,000
- Median home value
- $315,800
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Granbury sits among its neighbors
Kerrville, TX
Allowed by zone
104 seasonal homes, 9 per 1,000 housing units.
Rules in KerrvilleNew Braunfels, TX
Allowed by zone
1,008 seasonal homes, 23 per 1,000 housing units.
Rules in New BraunfelsFredericksburg, TX
Allowed by zone
751 seasonal homes, 115 per 1,000 housing units.
Rules in FredericksburgBoerne, TX
Capped
179 seasonal homes, 22 per 1,000 housing units.
Rules in BoerneFAQ
Granbury short-term rental questions
Where can a short-term rental operate in Granbury?
How big can a Granbury short-term rental be?
Can I advertise before the permit is issued?
Sources
- Hotel Occupancy Tax, Texas Comptroller of Public Accounts, read on September 20, 2026
- Hotel Occupancy Tax Exemptions (publication 96-224), Texas Comptroller of Public Accounts, read on September 20, 2026
- Short-term Rentals and Bed & Breakfasts, zoning ordinance article 4, City of Granbury, read on September 20, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on September 20, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.
Rental arbitrage calculator
Rent, deposit, furnishing, nightly rate and occupancy. You get monthly cash flow, the occupancy you break even at, and how long the setup takes to pay back.
Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.