Hood County, TX

Where short-term rentals are allowed in Granbury, TX

Granbury allows a short-term rental only inside its two historic overlay districts, so your address settles the question first. Even advertising the property counts as a use that needs the permit in hand.[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. The permit comes 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 and a certificate of occupancy. A health permit is also needed 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. That insurance provides coverage 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. The premises must be found compliant with the minimum health and safety requirements for use and occupancy. 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 coverage of up to $1 million per occurrence. The certificate stays 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]

Apply on the Granbury site

What Texas asks wherever you host

These rules apply at this address whatever the city decides.

  • Texas issues no state short-term rental license. What the state does impose is its hotel occupancy tax. The Comptroller applies it to houses, condominiums and apartments, not only to hotels.[1]

  • A room priced at $15 or more a day owes the state 6 percent. Local hotel taxes start lower, at $2 a day for a sleeping room. The local taxing authority collects those itself.[1]

  • After thirty consecutive days without interruption, a guest becomes a permanent resident, exempt from the tax. A guest who announces that plan in writing is exempt from the date of the notice. Any interruption voids it.[2]

Texas short-term rental rules

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.

Short-term rental tax layers in Granbury
LayerRateRemitted to
Texas state hotel occupancy tax[1]6%The state revenue department
Granbury hotel occupancy tax[3]Not publishedThe 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]

What 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. That is 16 out of every 1,000. It ranks Granbury 18th of the 23 Texas cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
18th of 23
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

San Antonio, TX

Permit required

Type 1 if the owner or operator lives on site, Type 2 if not. Type 2 rentals are capped at 12.5% of a block face.

San Antonio short-term rental rules

Wimberley, TX

Allowed by zone

20 seasonal homes, 14 per 1,000 housing units.

Wimberley short-term rental rules

New Braunfels, TX

Allowed by zone

1,008 seasonal homes, 23 per 1,000 housing units.

New Braunfels short-term rental rules

Kerrville, TX

Allowed by zone

104 seasonal homes, 9 per 1,000 housing units.

Kerrville short-term rental rules
StatewideEvery Texas city on this site, in one tableState law, the tax stack and every city we cover in Texas, with what each one asks of a host.Texas short-term rental rules

FAQ

Granbury short-term rental questions

Where can a short-term rental operate in Granbury?

Only within the Historic Preservation Overlay district and the Historic Compatibility Overlay district. Outside those two overlays the use is not allowed.[3]

How big can a Granbury short-term rental be?

Three bedrooms at most in a residential district, with one parking space provided for each bedroom.[3]

Can I advertise before the permit is issued?

No. The permit must be valid and active before you use the premises as a short-term rental, allow such use, or advertise them as one.[3]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Hotel Occupancy Tax, Texas Comptroller of Public Accounts, read on September 20, 2026
  2. Hotel Occupancy Tax Exemptions (publication 96-224), Texas Comptroller of Public Accounts, read on September 20, 2026
  3. 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.

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