Are you weighing a nightly Airbnb-style rental or a 30-day furnished lease in Houston? You are not alone. Houston’s unique planning landscape and the 30-day tax threshold make this decision both promising and complex. In this guide, you will learn how local rules, taxes, HOAs, operations, and submarket demand shape your strategy so you can choose the model that fits your returns and risk tolerance. Let’s dive in.
STR vs. 30-day MTR basics
Short-term rentals are booked by the night, usually for less than 30 consecutive days. Typical guests include tourists, convention and event attendees, short business travelers, or visiting family. A 30-day minimum furnished rental targets month-plus stays from relocating employees, contract workers, and extended-stay medical visitors.
The critical divide is the 30-day threshold. Rentals under 30 days are often treated as transient lodging for tax and regulatory purposes. Stays of 30 days or longer are frequently exempt from hotel or occupancy taxes and may follow standard residential lease rules. Your decision should start with where you want to sit relative to that line.
Houston rules and taxes explained
Houston’s no-zoning reality
Houston does not use traditional zoning. Instead, a mix of development ordinances and private deed restrictions and HOA rules shapes land use. Do not assume city zoning will block your STR. In practice, HOAs and recorded covenants are the most common constraints you will face.
Registration and inspections
Across the U.S., some cities require STR registration and safety inspections while others rely on tax registration and complaint-driven enforcement. In Houston and unincorporated Harris County, you should confirm whether nightly STRs need any local registration, inspections, permits, or posted safety items. Rentals of 30 days or longer are often treated like standard residential leases, but always verify how your local code defines “transient occupancy.”
Taxes and the 30-day line
Under 30-day stays are typically subject to hotel or occupancy taxes and related sales taxes. For 30-day or longer stays, many jurisdictions do not apply transient lodging taxes, treating income under general rental rules instead. In Texas, you should contact the Texas Comptroller of Public Accounts for statewide lodging and sales tax guidance, and check the Harris County tax office and City of Houston finance department for local hotel occupancy tax specifics. If you use platforms, note that some collect and remit certain taxes automatically, but coverage varies and you may still need to register or file.
HOAs and deed restrictions
In Houston, HOA and deed restrictions matter. Many HOAs prohibit or limit short-term rentals or set a minimum lease period of 30, 60, or 90 days. Others require owner occupancy or HOA registration for any rental. Review the community’s CC&Rs and bylaws, ask management about their enforcement history, and verify recorded restrictions through the Harris County Clerk or your title company.
Insurance and safety
Standard homeowner or landlord policies may exclude nightly STR activity. STR-specific endorsements or commercial general liability coverage are common for by-the-night hosting. For 30-day furnished leases, conventional landlord policies may fit more easily, but always confirm coverage for furnishing and short-term leasing. Safety basics like smoke and carbon monoxide detectors, egress, fire extinguishers, and posted emergency contacts are commonly required by cities, insurance carriers, or platforms.
Enforcement risks
Common triggers include neighbor complaints about noise or parking, code issues, tax non-compliance, and HOA enforcement. Penalties can include fines, civil actions, and orders to stop operating. You can reduce risk with clear house rules, neighbor communication, professional management, adequate insurance, and consistent screening.
Operations and numbers comparison
Revenue patterns
STRs can achieve higher average nightly rates with event-driven spikes around conventions, the Houston Livestock Show and Rodeo, sports, and concerts. They also carry more seasonality and vacancy variability. 30-day furnished rentals usually produce lower nightly equivalents but steadier occupancy and more predictable income, which helps with mortgage coverage during slower periods.
Cost and management load
STRs are operations-heavy. Expect frequent cleaning and laundry, dynamic pricing, 24/7 guest communications, automation, and rapid maintenance. Many owners hire professional management or co-hosting services. 30-day furnished rentals reduce turnover and the number of cleanings, shifting your focus to screening, lease compliance, and periodic maintenance.
Vacancy and cash flow
STR performance swings with the calendar and key events. You need disciplined revenue management and marketing to keep occupancy strong. 30-day furnished leases typically deliver stable monthly cash flow and easier forecasting.
Furnishing and capex
Both models require furnishing. STRs often need fuller hospitality packages and more frequent replacement due to wear. A 30-day furnished rental should deliver a functional home setup with a workspace, laundry access, and a well-equipped kitchen, with less emphasis on short-stay touches.
Financing and lender fit
Some conventional loans, especially owner-occupied or FHA/VA, restrict short-term rental activity. Investment loans may allow rentals but can include carve-outs for STRs. Condo associations may also limit STR occupancy. Always review loan documents and building bylaws.
Insurance and liability
Nightly hosting often requires STR-specific liability protection. Month-plus furnished leases more often fit traditional landlord coverage, but you should confirm policy language for short-term leasing and furnishing.
Accounting and taxes
STRs can create extra local tax registrations and filings, and more deductible operating expenses related to hospitality. Consult a CPA familiar with Texas STRs for tax classification, reporting, and deductions.
Where each model works in Houston
Nightly STR hot spots
- Downtown, Theater District, Discovery Green: Walkable to conventions, events, and dining.
- Midtown and Montrose: Restaurants and nightlife with quick access to downtown.
- Museum District, Rice Village, West University areas: Museum visits, university guests, some medical-related short stays.
- Near NRG Stadium and Reliant Park: Spikes around large events like the Rodeo, concerts, and games.
- Medical Center (select properties): Families of patients and visiting clinicians on short stays.
- Galleria and Uptown: Business and shopping demand, especially for short business trips.
- Near IAH and Hobby: Airline crews and transient travelers.
Always confirm HOA, building policy, and parking rules at the property level, even in high-demand zones.
30-day furnished sweet spots
- Energy Corridor, Westchase, Memorial: Corporate housing demand from energy sector assignees and contractors.
- Galleria and Uptown: Extended business projects and corporate transfers.
- Texas Medical Center and Rice Village: Visiting researchers, trainees, and longer medical stays.
- Baytown, Pasadena, Channelview, southeast industrial corridor: Project and contractor housing near petrochemical and refinery operations.
- Clear Lake, Webster, Seabrook: NASA contractors and aerospace staff on longer assignments.
- Katy, Sugar Land, West Houston suburbs: Family relocations and corporate transfers that prefer longer-term furnished options.
Condos vs. single-family
Condo buildings commonly restrict or prohibit nightly STRs through bylaws. Single-family homes in certain deed-restricted neighborhoods may allow STRs, but many HOAs set minimum lease terms. Always read the documents and verify enforcement.
Due diligence checklist
Use this step-by-step process before you buy or pivot a property.
- Regulatory and taxes
- Confirm current City of Houston and Harris County STR registration, inspection, and permit requirements.
- Contact the Texas Comptroller, Harris County tax office, and City of Houston finance for lodging and sales tax rules, exemptions, and whether platforms collect for you.
- Title and deed restrictions
- Order a title report and read recorded CC&Rs and deed restrictions via the Harris County Clerk. Flag any occupancy term rules or rental prohibitions.
- HOA or condo rules
- Get the full bylaws and rental policies. Verify minimum lease terms, owner occupancy rules, registration steps, and fines for violations.
- Insurance and lender confirmation
- Review coverage options with your broker for STR endorsements or commercial policies. Confirm your loan documents allow your intended rental model.
- Market demand and financial model
- For STRs, pull comps on ADR, occupancy, and seasonality from data tools such as AirDNA or similar sources.
- For 30-day furnished rentals, analyze corporate housing and long-term furnished rates.
- Build conservative cash-flow scenarios including vacancy, cleanings, management, taxes, HOA dues, insurance, and capex.
- Operational plan
- Decide on self-management versus professional management. For STRs, plan for guest communications, cleaning turnaround, linens, and key exchange.
- Neighborhood, parking, safety
- Confirm street parking rules, any noise ordinances, trash pickup limits, and required safety devices.
- Legal counsel and CPA
- Review tax classification, potential filings, and entity structure with a CPA. Consult a Texas real estate attorney on HOA and covenant enforcement risks.
- Exit strategy
- Assess resale demand for STR-ready homes versus long-term rentals. Evaluate how easily you can convert between nightly STR and 30-day furnished operations.
Which strategy fits your goals?
Consider these questions to align your model with your objectives:
- Do you want higher revenue potential with more hands-on management, or steadier cash flow with lower intensity? STRs aim for top-line spikes. 30-day furnished rentals focus on predictability.
- Are you comfortable with regulatory and HOA risk? Nightly STRs face more potential friction from rules, taxes, and neighbor complaints.
- How does your property type and location line up with demand drivers? Proximity to events, convention centers, and entertainment favors STRs. Corporate nodes, hospitals, and industrial corridors favor 30-day+.
- What does your loan and insurance allow? Confirm this early to avoid costly pivots.
If you are targeting reliable mortgage coverage and simpler compliance, 30-day furnished is often the safer first step. If your property sits in a true event or convention corridor and you can handle the operations, STRs can outperform while conditions are favorable.
Pivoting between models
Many investors value the option to switch from nightly STR to 30-day furnished or vice versa. This can help you respond to seasonality or changes in rules. Before you count on a pivot, confirm that HOAs and deed restrictions allow both models and that your insurance and lender will approve either approach. Build a plan for furnishings, pricing, and marketing to switch efficiently if needed.
Work with a local, hands-on partner
Choosing between STR and 30-day furnished in Houston is not one-size-fits-all. Property type, HOA rules, demand drivers, taxes, and operations all matter. If you want design-forward guidance with real investor know-how, connect with a local partner who understands inner-loop neighborhood nuance and cross-market dynamics across the Houston–Galveston corridor.
Let’s connect — find your next home or investment with Unknown Company.
FAQs
What is the main difference between STR and 30-day furnished rentals in Houston?
- The critical difference is the 30-day threshold. Stays under 30 days are commonly treated as transient lodging for taxes and rules, while 30-day or longer stays often follow standard residential lease treatment.
Do I need a permit to run an STR in Houston?
- Requirements vary and can change. Confirm with the City of Houston and Harris County whether any registration, inspection, or permit is required for nightly rentals in your property’s location.
How do hotel and sales taxes apply to STRs versus 30-day leases?
- Under 30-day stays are typically subject to hotel or occupancy taxes and related sales taxes. 30-day or longer stays are often exempt from these transient lodging taxes. Verify with the Texas Comptroller and local tax offices.
Can my HOA stop me from doing a nightly STR?
- Many HOAs and deed restrictions limit or prohibit short-term rentals or set minimum lease terms. Review your CC&Rs and bylaws and verify enforcement practices before buying or listing.
Which Houston areas are best for 30-day furnished rentals?
- Corporate and project-driven nodes such as the Energy Corridor, Westchase, Galleria, Texas Medical Center, and industrial corridors like Baytown and Pasadena often support month-plus demand.
What insurance do I need for a nightly STR?
- Standard homeowner or landlord policies may exclude nightly hosting. STR-specific liability coverage or commercial policies are commonly required. For 30-day furnished rentals, traditional landlord coverage may fit, subject to policy terms.
Can I switch from STR to 30-day furnished if rules change?
- Many owners plan for a pivot, but you must first confirm HOA, deed restriction, lender, and insurance compatibility with both models to avoid compliance or coverage gaps.
