Cedar Park Edition | May 2026

Vacation rentals face new oversight From the cover

By the numbers

Some context

few years, and he expects it to continue to remain steady. The average cost of a short-term rental stay has, however, dramatically increased in recent years, and in 2025, Gallagher said short-term rentals in Cedar Park brought in over $6 million in revenue. With 250 registered short-term rentals bringing in over $6 million in revenue, the city could gener- ate about $450,000 in hotel occupancy tax. “By far, the largest owners of short-term rentals are locals,” Gallagher said. “So, that’s $6 million almost certainly going to people that live in and around the area.”

City sta estimate there are currently 200 short-term rental properties operating in the city, according to city documents. Bram Gallagher, director of economics at short-term rental data analytics company AirDNA, conrmed that as of March 2026, an average of 251 short-term rentals were on the market in Cedar Park at any given time. The number of short-term rentals on the market has generally trended upward over the last ve years, with a signicant spike in early 2022. However, Gallagher explained that the rate at which more short-term rental properties are added to the market has gradually slowed over the last

In the past, it has been dicult to track short-term rentals and to ensure owners are paying hotel occupancy tax, Cedar Park ocials said. Registration would also address any code compliance issues surrounding short- term rentals. A majority of similar cities, like Round Rock and Buda, require an annual permit or registration, as well as an annual fee.

HOT topic

What is hotel occupancy tax?

Cedar Park short-term rentals by daily rate Cedar Park city limits $75 or less $76-$162

Short-term rental owners, like traditional hotels, are required to pay a tax equal to 7% of the price paid to rent a room.

$163-$322

$323 or higher

What does HOT money fund?

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The city code of ordinances states that HOT revenue “may be used only to promote tourism and the convention and hotel industry.” Those uses include:

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Arts funding

WHITESTONE BLVD.

Historic preservation and restoration

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ANDERSON MILL RD.

Tourism advertising

Cedar Park

Building and maintaining convention facilities Public transportation to and from hotels

W. PARMER LN.

MOPAC

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SOURCE: CITY OF CEDAR PARK‡COMMUNITY IMPACT

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SOURCE: AIRDNA‰COMMUNITY IMPACT

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