Short‑Term Rentals in East Dallas: Current Rules

Thinking about running a short-term rental in Old East Dallas, or buying a home with STR potential? The rules here are specific, and parts of the city’s program have shifted due to court actions. You deserve a clear, local guide so you can plan with confidence. Below you’ll find what is allowed by zoning, what Chapter 42B requires, how taxes work, and what is being enforced right now. Let’s dive in.

How Dallas defines STRs

Short-term rental lodging in Dallas means renting a full or partial unit with a kitchen, bathroom, and bedroom for fewer than 30 consecutive days. The formal definition appears in the Dallas Development Code’s lodging section. You can review the definition and where the use is listed in Section 51A‑4.205 of the Dallas Development Code.

Where STRs are allowed in East Dallas

Dallas regulates where STRs can operate through zoning. Old East Dallas sits inside the City of Dallas, so city zoning applies.

Single-family districts

Under the development code, short-term rental lodging is not a permitted use in single-family, duplex, or townhome residential districts. Many Old East Dallas blocks are single-family, so this rule is often decisive. Check your specific parcel before making plans by using the city’s Zoning Resources and map.

Multifamily and mixed-use areas

STR lodging is allowed by right in certain districts such as multifamily, mixed-use, and several commercial categories. Some buildings have extra caps or conditions. You can confirm the allowed districts and notes in Section 51A‑4.205, and the city’s Short-Term Rentals page is a helpful hub for updates and resources.

Historic and conservation districts

Old East Dallas includes several historic and conservation districts. Many of these areas overlay single-family zoning, which typically excludes STR lodging. If a property sits in a Planned Development or Conservation District, read the specific ordinance for that area. Start with the city’s STR hub and the zoning map to identify overlays.

HOAs and deed restrictions

Even when city zoning may allow an STR, private covenants can prohibit or limit rentals. Texas courts have upheld or rejected HOA restrictions based on the exact declaration language. Always review recorded CCRs and HOA policies. For background on how courts analyze these issues, see this Texas appellate decision summary on HOA short-term rental restrictions.

What Chapter 42B requires

Dallas created Chapter 42B to set operating rules and a registration system for STRs. The chapter covers registration, inspections, posting requirements, a local responsible party, occupancy and parking limits, and more. Browse the full chapter at Dallas City Code, Chapter 42B.

Key provisions include:

• Annual STR registration and posting of the registration certificate and certificate of occupancy where required.
• A local responsible party who can be reached 24/7 and respond within specified timeframes.
• Minimum two-night stay, occupancy limits per bedroom with a city cap, and one off-street parking space per bedroom.
• Quiet hours that prohibit amplified sound audible beyond the property line during set night hours.
• Listing requirements that display the city registration number and key limits.

For fee details, renewals, and inspections, review the registration and fee sections in Chapter 42B procedures.

Taxes you must handle

Hotel Occupancy Tax applies to short stays in Dallas. The state rate is 6 percent, and the City of Dallas rate is 9 percent. The city Controller’s Office explains how to register and file, and whether your platform collects any portion for you. Get the current rules and registration links from the City Controller’s Hotel Occupancy Tax page.

Enforcement and litigation status

City rules exist in two parts: where STRs are allowed by zoning, and how they must operate under Chapter 42B. Courts have limited the city’s ability to fully enforce portions of the 2023 STR ordinances while litigation proceeds.

• June 14, 2023: City Council adopted the STR zoning and operations program. See the city’s Short-Term Rentals page for background.
• December 6, 2023: A trial court issued a temporary injunction blocking enforcement of the new ban in single-family areas and parts of Chapter 42B while the case continued, as reported by Dallas Express.
• July 18, 2025: The Fifth Court of Appeals issued a rehearing opinion that affirmed in part and reversed in part, which narrowed and clarified the injunction. You can read the appellate opinion summary on Justia.

As of October 2025: City enforcement of some STR provisions remains affected by the litigation. Nuisance, noise, parking, and minimum property standards still apply, and HOT taxes remain due. For the latest on active enforcement, check the city’s STR resource page before taking action.

Steps to take before you buy or host

1. Confirm zoning and overlays. Use the city’s zoning map and resources to verify your parcel’s district and any PD or conservation overlay.

2. Review private restrictions. Obtain the CCRs and any HOA rules to see if STRs are prohibited or restricted. When in doubt, consult the HOA or an attorney.

3. Register for HOT and verify platform collection. Register and remit Dallas HOT if required, and confirm whether your platform collects city HOT on your bookings through the City Controller’s page.

4. Prepare for 42B operations. If and when Chapter 42B applies to your property, line up a local responsible party, post required documents, observe occupancy and parking limits, and comply with quiet hours. See Chapter 42B procedures.

5. Know how complaints work. Neighbors can report issues through Dallas 311, and Code Compliance may investigate. Learn how reporting and responses work on the city’s 311 FAQ page.

Ready for local guidance?

If you are weighing an STR purchase, prepping a sale, or deciding how to use a property in Old East Dallas, you deserve clear, neighborhood-first advice. Reach out to Jason Landry for a confidential consult tailored to your goals and the latest city rules.

FAQs

What is a short-term rental under Dallas code?

• Dallas defines it as renting a full or partial unit for fewer than 30 consecutive days, per Section 51A‑4.205.

Are STRs allowed in single-family areas of Old East Dallas?

• The development code does not permit STR lodging in single-family, duplex, or townhome districts, and current enforcement may be affected by ongoing litigation.

What are the core operating rules if Chapter 42B applies?

• Expect annual registration, posting requirements, a local responsible party, occupancy and parking limits, quiet hours, and listing disclosures per Chapter 42B.

What hotel taxes do Dallas hosts owe?

• The City of Dallas hotel occupancy tax is 9 percent in addition to state HOT, with registration and filing steps on the Controller’s page.

How do neighbors report STR issues in East Dallas?

• Start with Dallas 311 for noise, parking, and nuisance concerns, as outlined on the city’s 311 FAQ.