Short-Term Rental Rules in Bastrop, TX: What Owners Need to Know

If you are buying a property in Bastrop to run as an Airbnb or VRBO, the rules changed recently and most listings and investor guides have not caught up. The City of Bastrop adopted a short-term rental ordinance that came fully into effect on April 26, 2025. Every STR inside the city now has to be registered, and the tax picture catches people out because it reaches further than the city limits. Here is the practical version.

I am a REALTOR®, not a tax attorney or a city official. Everything below is from the City of Bastrop’s own ordinance and tax pages and is current as of August 2026. Ordinances change — confirm with Development Services before you buy on the strength of a rental plan.

The first question: are you actually in the city?

This decides which rules apply, and it is not obvious from an address. A property with a Bastrop mailing address can sit in the city limits, in the city’s extraterritorial jurisdiction (ETJ), or in unincorporated Bastrop County — three different situations.

Inside the city limits: City registration and the city, county, and state hotel-occupancy-tax requirements apply.
In the City of Bastrop ETJ: current City and County guidance says the City’s registration/application process and the city, county, and state hotel-occupancy-tax requirements apply. Confirm the parcel’s current ETJ status before operating.
Unincorporated county outside a city or ETJ: Bastrop County does not currently have a general STR registration process, but state and county hotel occupancy taxes still apply. Current County guidance shows 6% to the State and 7% to Bastrop County, for a 13% combined rate. Other permits and private restrictions may still apply.

Check the parcel rather than the postcode. If you are looking at a specific property and want this confirmed before you write an offer, send me the address.

Registration: what the city actually requires

Under Ordinance No. 2025-07, the City requires short-term-rental registration. Review the City’s current registration page and confirm whether a property in the City or its ETJ must complete the application before relying on a rental plan.

Property address and owner information
A local contact available 24 hours a day, seven days a week
Proof of tax payments
Safety information — fire alarms and an evacuation plan
Details of the platforms you list on (Airbnb, VRBO and so on)

The 24/7 local contact is the one that changes the math for out-of-town owners. If you live in Austin or Houston and were planning to self-manage remotely, you need a named local person who can respond at 2 a.m. That is either a property manager, which has a cost, or a friend willing to take the call.

Application fee	$25
Renewal	Annually
One registration per unit	Yes — each STR registers separately, even if several sit on the same property
Where to register	The city’s MyGov portal
Questions	Development Services, (512) 332-8840

That “one registration per unit” line matters if you are buying a property with a main house and a casita, or a multi-unit building. Two rentable units means two registrations and two renewals.

Hotel occupancy tax: 13.75% in the City or ETJ, 13% outside

The applicable hotel occupancy tax depends on location. For a lodging property inside the City of Bastrop or its ETJ, the current stack is:

Levied by	Rate
State of Texas	6.00%
City of Bastrop	7.00%
Bastrop County	0.75%
Combined	13.75%

For a property outside every city limit and ETJ, current Bastrop County guidance shows 6% State tax plus 7% County tax, for a 13% combined rate. Owners, operators, or managers remain responsible for correct collection, filing, and payment. Some platforms may remit certain portions, but do not assume all local taxes are handled. Verify platform agreements and the property’s jurisdiction with the Bastrop County hotel-occupancy-tax guidance and the City tax page.

The City of Bastrop collects through a third-party service called Localgov rather than directly, and returns are subject to verification by a city auditor. Keep detailed records of receipts, exemptions and reimbursements.

What this does to the numbers

For illustration, a property inside the City or ETJ renting at $200 a night with 60% occupancy would have roughly 219 occupied nights and about $43,800 in gross nightly charges before other taxable fees.

Hotel occupancy tax at 13.75% — around $6,023 passing through your hands, whether or not it is separately itemized to the guest
Registration — $25 a year, per unit. Negligible.
Local 24/7 contact — the real recurring cost if you are not local

Hotel occupancy tax is generally collected from the guest and remitted rather than treated as operating income. The pro forma should separately model taxable charges, platform collection, owner remittance obligations, management, insurance, utilities, maintenance, vacancy, financing, and reserves.

Two things to check before you buy, not after

Your HOA or POA. The city ordinance is not the only rule that can stop you. Plenty of Bastrop County subdivisions restrict or prohibit short-term rentals in their recorded covenants, and a deed restriction is enforceable regardless of what the city allows. Get the restrictions and read them before the option period ends.

Your septic system, if the property is on one. An on-site sewage facility is permitted for a design load. A three-bedroom house permitted for a family and then run at maximum occupancy every weekend is a different load than the system was sized for. Bastrop County permits every installation and modification regardless of acreage, and aerobic systems carry a mandatory maintenance contract. The septic guide covers what to check.

And know the market you are buying into

For current for-sale context, the July 2026 Unlock MLS report showed 6.3 months of inventory in Bastrop County, down 0.3 month year over year; a $346,140 median price, up 2.3%; and a 92.7% average close-to-list price.

Higher inventory may create more selection and negotiating room, but it does not by itself make a property a good investment or predict appreciation. Evaluate the purchase using conservative rental assumptions, verified expenses, financing, taxes, insurance, maintenance, and an exit plan.

Sources checked: Unlock MLS July 2026 Central Texas Housing Report.

Scope: This is a dated Bastrop County residential for-sale snapshot. It does not establish short-term-rental legality, demand, occupancy, nightly rates, expenses, financing, appreciation, resale, or investment return for a specific property.

Review again: When Unlock MLS publishes the next Bastrop County report and before using a market figure in any short-term-rental or investment analysis.

Thinking about an STR purchase in Bastrop County?

Send me an address and I can help identify the City, ETJ, or unincorporated location; locate association and appraisal records; and organize the tax, restriction, insurance, and septic questions that need confirmation. The City or County, association, tax professional, insurer, and appropriate legal or septic professionals should confirm the controlling requirements. Call or text (512) 993-8488 or get in touch.

Written by Bre Meador, REALTOR® — All City Real Estate, Bastrop County, TX · U.S. Army veteran and former nurse · TREC #0835116
Read client reviews. Last updated August 5, 2026. General information from a licensed REALTOR®, not tax or legal advice.

Is there an association here? HOA and POA fees in Bastrop County explains the resale certificate you are entitled to, the 10-business-day deadline, and the restrictions that matter more than the dues.