Politics
El Paso Caps Short-Term Rentals at Three Per Block
The measure caps short-term rentals at three per block in residential zones and requires annual permits, directing fee revenue to the city's housing assistance programs.
How we reported this
The El Paso City Council passed a short-term rental licensing ordinance during its July 8 meeting. The rules require operators to obtain permits, pay annual fees and adhere to a three-unit cap per residential block. Property owners who list homes on platforms such as Airbnb and local renters seeking long-term leases are the groups directly affected by the changes.
Comparison to Other Texas Cities
El Paso sets its cap at three units per block, matching the limit adopted by San Antonio last year while remaining lower than the five-unit threshold used in Houston. Dallas allows up to ten percent of a neighborhood's housing stock to be used for short-term rentals. City staff noted that the El Paso ordinance also includes a $250 annual permit fee, which is $50 higher than Austin's current rate but includes an exemption for owner-occupied properties that San Antonio does not provide.
The policy addresses rising housing demand in neighborhoods such as Kern Place and Sunset Heights. Residents who rely on stable rental agreements may face fewer competing listings from short-term operators. Homeowners who currently earn supplemental income from occasional rentals must now comply with registration requirements or remove their listings by the October 1 deadline.
Budget Impact and Next Steps
According to the city's 2026 budget document, the ordinance is projected to generate $480,000 in permit fees during the first full year. That revenue is allocated to the Housing Opportunity Fund, which supports security deposit assistance for income-qualified households. The same document lists $175,000 for code enforcement staff to conduct compliance checks starting in the fourth quarter of 2026.
Applications for permits open on August 1 through the city's online portal. Operators who fail to register by October 1 face fines of $500 per day. City officials have scheduled two public workshops in August to explain the registration process to current hosts and property managers.
Enforcement will begin with a 90-day grace period for existing listings. After that period, the city will conduct random inspections in the four council districts with the highest concentration of short-term rentals. The ordinance text states that the cap may be reviewed after 18 months based on data from the permit system.