Katy, Texas

Katy adopted its short-term rental ordinance (Article 4.10) on March 27, 2023, making STRs explicitly legal citywide with a permit requirement. A new permit costs $300, renewal costs $200, and an inspection fee of $50 applies at each cycle. Permits expire after 12 months and must be renewed annually. Operators must pass initial and renewal code and fire inspections and carry general-liability insurance. There is no owner-occupancy requirement, no primary-residence requirement, and no cap on annual rental nights, which makes Katy comparatively investor-friendly relative to many Texas cities. The city levies a 7% hotel occupancy tax on short-term stays (under 30 nights), which stacks on top of the 6% Texas state HOT for a combined 13% occupancy tax obligation. Violations carry a fine of up to $500 per occurrence, with repeat noncompliance potentially triggering permit revocation. Important use restrictions: the property cannot serve as an event or party venue, and only the physical dwelling may be rented (no RVs, campers, tents, or hammocks on the property as a rental unit). Enforcement severity is rated moderate, with complaints routed to the planning department, building official, and fire marshal. Investors should budget for annual permitting, two inspections per cycle, insurance, and 13% combined occupancy tax.