San Antonio Short-Term Rental Permits: Type 1 vs Type 2, Density Caps, and Hotel Occupancy Tax

If you want to rent a San Antonio home for stays under 30 days, you need a Short-Term Rental (STR) permit from the City's Development Services Department (DSD) before the first booking, and you need to be collecting and remitting hotel occupancy tax (HOT) at the state, city, and county levels. Skipping either one is the fastest way to eat a fine, get delisted by the platform, or trigger a code enforcement case that follows the property.

The rules live in San Antonio's STR ordinance, adopted in late 2018 and amended since. The two things that trip up new operators are (1) which permit type they actually qualify for, and (2) that Airbnb collecting some of the tax does not mean the tax obligation is handled.

The two permit types

San Antonio splits STRs into two categories. The distinction is entirely about whether the owner lives there.

• Type 1 — The STR is the owner's primary residence, or a unit on the same lot as the owner's primary residence (a casita, garage apartment, guest house). This includes hosted stays (renting a room) and unhosted stays when you are traveling.
• Type 2 — The STR is not the owner's primary residence. This is the classic investor-owned Airbnb: a house in Southtown, Dignowity Hill, or near the Pearl that the owner bought specifically to rent by the night.

Type 1 permits are essentially uncapped. If you own the home and live there, you can get one as long as the paperwork and inspection clear. Type 2 permits are the ones with density caps, and in some neighborhoods they are effectively closed.

Density caps and where Type 2 is full

In residential zoning districts, San Antonio caps Type 2 STRs at 12.5% of the units on a given block face. Block face means one side of a street between two intersections — not the whole block. Once that ratio is hit, no new Type 2 permits are issued on that block face until an existing permit lapses or is revoked.

DSD publishes an STR map showing which block faces are at cap. Before you close on a property whose numbers only work as a nightly rental, pull that map. Areas that have historically been at or near cap:

• King William and Lavaca (78204) — walkable to downtown and the River Walk, high demand, small blocks that hit 12.5% fast.
• Dignowity Hill and Denver Heights (78202) — east of I-37, close to the Alamodome and Pearl.
• Mahncke Park and parts of Government Hill (78209/78208) — near Fort Sam Houston and Brackenridge Park.
• Blocks immediately around the Pearl and Broadway corridor.

Outside residential zoning — commercial and mixed-use districts, downtown — the density cap does not apply the same way. That is one reason condo units in downtown high-rises are a common STR play.

Hotel occupancy tax: three layers, one operator on the hook

Stays under 30 consecutive days are subject to hotel occupancy tax. In San Antonio, that is three separate taxes stacked on the same booking:

Level	Rate	Remit to
State of Texas	6%	Texas Comptroller
City of San Antonio	9%	City Finance Department
Bexar County	1.75%	Bexar County

That is 16.75% on top of the nightly rate. A $200 night collects $33.50 in tax that is not yours to keep.

Airbnb and Vrbo have agreements with the state and the city that cover collection and remittance of some of these taxes on bookings made through their platforms. What that agreement covers has changed over time, and it does not automatically cover Bexar County's portion or direct bookings you take through your own website, Facebook, or a management platform that does not have an agreement in place. The operator — you — remains legally liable if any layer goes unpaid.

Register with the Texas Comptroller for a state HOT account regardless. Register with the City of San Antonio for local HOT. File returns even in months you had zero bookings, or the account goes delinquent.

What the DSD application actually requires

The permit itself is filed through DSD. Expect to provide:

• Proof of ownership (deed) or a notarized owner authorization if you are managing on behalf of the owner.
• Proof of primary residence for Type 1 (Texas driver's license address, homestead exemption, utility bills).
• A designated local contact who can respond to complaints within a set window — critical if you live out of state.
• Liability insurance meeting the ordinance's minimum (STR-specific or landlord policy with STR endorsement — a standard HO-3 will not cover this).
• State HOT permit number.
• Site plan showing parking. San Antonio requires off-street parking for STR guests; you cannot rely on the street in most residential zones.
• Permit fee, which varies by type and has been raised more than once — check the current DSD fee schedule rather than a number you saw on a forum.

Permits are typically issued for three years and are renewable. They do not transfer to a new owner — if you sell the house, the buyer applies fresh, and if the block face is now at cap, they may not qualify.

HOA and deed restrictions still control

A city permit does not override private deed restrictions. In much of Stone Oak (78258), Alamo Ranch (78253), Cibolo Canyons, and newer NEISD/NISD subdivisions, the HOA's CC&Rs prohibit rentals under a minimum term — often 6 or 12 months — which kills STR use regardless of what DSD says. Alamo Heights (78209) is its own municipality with its own rules layered on top of San Antonio's. Boerne and Helotes have their own STR ordinances entirely.

Read the CC&Rs before you buy. If the HOA has an active board and a management company, they will find your listing — usually within two weekends of the first guest.

Insurance and safety requirements

A standard homeowner's HO-3 excludes business use, and short-term rental is business use. Options:

• A landlord policy (DP-3) with a specific STR endorsement.
• A dedicated STR carrier (Proper, Obie, Steadily, and similar write in Texas).
• Platform host protection (Airbnb's AirCover, Vrbo's Liability Insurance) as a supplement, not a replacement — these have coverage gaps that show up in claims.

The ordinance also requires working smoke detectors in every sleeping area, a carbon monoxide detector if there is any gas appliance or attached garage, a fire extinguisher, and posted emergency contact information inside the unit. DSD can inspect on complaint.

What most people get wrong

• Assuming Airbnb handles the tax. Airbnb collects some HOT under its state and city agreements. You are still the responsible party, and county HOT plus any direct bookings are on you. Register with the Comptroller and the city, and file.
• Buying an investment property, then applying for the permit. Check the DSD density map for that specific block face before you write an offer. "The one across the street is on Airbnb" is not evidence the block face has room — they may be the one that closed it.
• Using Type 1 status while living elsewhere. If your homestead exemption is on a different address, DSD can and does revoke Type 1 permits. Pick a lane.
• Ignoring the HOA because "they've never bothered anyone." Enforcement is complaint-driven. One neighbor annoyed by a bachelor party is all it takes, and injunctive relief from a Texas HOA is not expensive for them to pursue.
• Running an STR on a mortgage that says owner-occupied. If you bought the house with an FHA or owner-occupied conventional loan and pivot to nightly rentals inside the occupancy period, you have a lender problem separate from a city problem.
• No local contact. If you live in Austin, Houston, or out of state, the ordinance requires someone reachable in the San Antonio area to respond to complaints. Missing that contact — or listing a number that goes to voicemail — is one of the most common revocation reasons.

When STR is not the right play

If your block face is capped, your HOA prohibits it, your numbers only work at 80%+ occupancy, or you do not want to run what is functionally a hospitality business (turnovers, guest messaging, damage claims, tax filings), a traditional 12-month lease usually nets better risk-adjusted return in San Antonio's current market. Run both pro formas honestly before you commit to the permit and the furniture spend.

If you decide the long-term rental path is the better fit, you can list your San Antonio property free at HomeFinder's /list-your-home, or browse /agents to find a local property manager who handles STR-to-LTR conversions. More landlord guides — screening, deposits, repair duty, evictions — are at /resources.