What are the key requirements for Lake Texoma hosts?

Unincorporated properties are considered 'commercial' for fire code purposes and must have 24-foot wide fire lanes for groups over 30 sites.

What should Lake Texoma hosts know about denison requires registration with avenu?

Denison requires registration with Avenu Insights for all tax payments.

What should Lake Texoma hosts know about hoa restrictions are common and?

HOA restrictions are common and strictly enforced by Texas courts even if the city allows STRs.

What should Lake Texoma hosts know about occupancy is generally capped at?

Occupancy is generally capped at 2 people per bedroom plus 2, with a hard cap of 12 in many jurisdictions.

Short-Term Rental Laws in Lake Texoma, TX

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Verified: Feb 4, 2026

3 Official Sources

Summary

Short-term rentals in the Lake Texoma region are governed by a combination of Grayson County fire safety codes and specific municipal ordinances in cities like Pottsboro and Denison.

Restriction Level

⚠️

Moderate

Score: 11 (restrictive)

Why this classification:

•Standard permit fee: $150
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

If your rental is in a city like Pottsboro or Denison, you must obtain a local permit and pay city hotel taxes. For properties in unincorporated areas of the lake, you must follow Grayson County fire safety standards and register for state and county hotel occupancy taxes. All hosts must collect and remit a 6% state tax plus local taxes, which vary by exact location.

At a Glance

Permit Required

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$150

Max Fine

$2,000

4 Things Hosts Often Miss

1.Unincorporated properties are considered 'commercial' for fire code purposes and must have 24-foot wide fire lanes for groups over 30 sites.
2.Denison requires registration with Avenu Insights for all tax payments.
3.HOA restrictions are common and strictly enforced by Texas courts even if the city allows STRs.
4.Occupancy is generally capped at 2 people per bedroom plus 2, with a hard cap of 12 in many jurisdictions.

Regulation Details

Eligibility(3)

•Lake Texoma does NOT require the property to be a primary residence. Investment properties are allowed.
•Lake Texoma allows STRs in the following zones: Residential, Multi-family, Commercial.
•Lake Texoma allows STRs in the following property types: Single Family, Condo, Townhouse, RV.

Requirements(8)

•Texas requires STR registration. Apply at: https://comptroller.texas.gov/taxes/hotel/
•Lake Texoma STR warning: HOA restrictions are common and strictly enforced by Texas courts even if the city allows STRs.
•Lake Texoma STR warning: Occupancy is generally capped at 2 people per bedroom plus 2, with a hard cap of 12 in many jurisdictions.

Application Process(6)

•Lake Texoma STR permit - Step 3: Register for Local Hotel Occupancy Tax. In cities like Denison or Pottsboro, you must register to pay the local 7% tax. In unincorporated Grayson County, you must register for the 2% county tax. Required documents: State Tax Permit. Time: 1 week.

Fees & Costs(1)

•Lake Texoma charges a registration fee of $150 (annual).

Taxes(3)

•Grayson County charges a Transient Occupancy Tax of 0.02%.
•Texas charges a state-level Transient Occupancy Tax of 0.06%.
•Lake Texoma charges a Transient Occupancy Tax of 0.07%.

Limits & Restrictions(3)

•Lake Texoma limits STRs to a maximum of 4 vehicles.
•Grayson County limits STRs to a maximum of 10 guests.
•Lake Texoma limits STRs to a maximum of 12 guests.

Safety Requirements(1)

•Lake Texoma requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted emergency contact, parking, trash plan, noise restrictions (Quiet hours typically 10pm-7am).

Penalties(1)

•Lake Texoma enforces the following penalties for STR violations: First violation: $500 fine. Subsequent violations: Permit revocation. Maximum fine: $2000.

Exemptions(1)

•Lake Texoma exempts the following from STR regulations: bed and breakfast establishments, hotels and motels, long-term stays (30+ days), Stays over 30 days are exempt from HOT.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Lake Texoma

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(3)

Requirements(8)

Application Process(6)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(3)

Safety Requirements(1)

Penalties(1)

Exemptions(1)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Lake Texoma

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Lake Texoma?

2What is the TOT tax rate in Lake Texoma?

3What are the safety requirements for Lake Texoma STRs?

4How do I register for taxes in Lake Texoma?

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