Considering short-term rentals as part of a multifamily investment in Grapevine? The city reshaped the landscape in 2024, and the details matter. You want clear rules, real limits, and a practical path to approval so you can model returns with confidence. This guide explains what is allowed, how many units you can operate, the costs and taxes to expect, and the steps to move from concept to compliant operation. Let’s dive in.
What changed in 2024
Grapevine now allows short-term rentals only in select multifamily settings and only with approvals. Single-family STRs remain prohibited. The city created a two-step process that requires a conditional-use approval by City Council and a separate permit issued by Planning Services. You must complete a pre-application meeting before filing.
For the official overview, review the city’s Multifamily Short-term Rentals guidance and FAQs:
- See the city’s summary of multifamily STR rules and process on the Planning Services page. (City of Grapevine MSTR guidance)
- Confirm the baseline rule that single-family STRs are not allowed. (City FAQ: Are STRs allowed?)
Where STRs are allowed and key limits
Grapevine’s ordinance focuses on larger multifamily communities and places strict caps and buffers on STR use.
- Zoning: Only R-MF and R-MF-2 districts are eligible. A City Council conditional-use approval is required before permits.
- Minimum size: The property must have at least 50 units.
- Cap per complex: No more than 3% of units in a qualifying complex may operate as STRs.
- Location buffers: Eligible units must be more than 500 feet from single-family zoned property. STRs are not allowed in the Historic Township or in Transit District overlays.
- Use limits: Each approved unit can operate no more than 180 days per year, with a 24-hour minimum stay. Parties and certain amplified activities are restricted during quiet hours.
City staff materials noted the rules would likely limit the total number of STR units citywide to a small figure based on existing projects. The numeric caps, buffers, and operational limits were detailed in the public meeting record. (City Council staff presentation and discussion)
What this means for your pro forma
The 3% cap per complex, 50-unit minimum, and 180-day annual limit create a narrow, highly regulated STR opportunity. Plan for STR income as a supplemental line, not a building-wide strategy.
Grapevine’s tourism base is strong, with millions of annual visitors and a robust hotel sector. That demand can support selective STR use around peak convention and event periods, but hotels remain significant competitors. Local reporting highlights Grapevine’s major visitor draw and tourism activity that shape policy and demand patterns. (Tourism context and visitor activity)
The approval path, step by step
Follow a simple sequence to evaluate and pursue approvals:
- Screen the property online.
- Confirm zoning is R-MF or R-MF-2 and check overlay maps for Historic Township and Transit District areas.
- Verify the complex has at least 50 units and calculate the 3% cap for a unit count estimate.
- Measure buffers.
- Map distances to single-family zoned parcels. If candidate units are within 500 feet, they are not eligible.
- Meet with Planning Services.
- Schedule the required pre-application meeting and be ready to discuss operating controls like parking, noise mitigation, 24-hour contacts, and reporting. (Multifamily STR process overview)
- Seek the conditional use.
- Prepare materials for Planning & Zoning and City Council hearings. Allow time for scheduling and neighborhood input. (Public meeting discussion of conditions)
- Apply for the permit and inspections.
- After approval, submit for the multifamily STR permit. Expect unit-level inspections before issuance and at renewal.
For exact ordinance language, refer to Ordinance No. 2024-007 and Section 21 of the Comprehensive Zoning Ordinance. (Ordinance and Plans library)
Costs, taxes, and reporting to budget
Budget both upfront and ongoing costs to stay compliant and protect returns.
- Permit fee: Local reporting cites a $500 per-unit, per-year application and renewal fee. Fines can reach up to $2,000 per violation, and revocation can trigger a two-year bar on reapplying. (Adoption summary and fee/fine reporting)
- Hotel occupancy tax: STRs must remit lodging taxes consistent with city rules. Grapevine commonly references a combined 13% rate for hotel stays, with remittance to the city’s Finance Department as required. Confirm whether your platform collects any portion or if you must remit directly. (Local HOT context)
- Reporting and contacts: Expect quarterly booking reports if triggered by ordinance, posted guest notices, and a 24-hour local contact. (Staff presentation on operating conditions)
Operational guardrails to plan for
To protect neighbors and satisfy the city’s conditions, plan for:
- Clear house rules, quiet hours, and no-event policies.
- On-call responsiveness via a local 24-hour contact.
- Parking plans that do not burden neighboring residents.
- Permit numbers displayed in listings if required, plus accurate tax and record-keeping.
HOA, lease, and insurance realities
A city permit does not override private rules. Condominium CC&Rs, owner association rules, lender covenants, and leases can prohibit STR use even where the city allows it. Review recorded restrictions and insurance needs before committing. Start with the city’s process outline to frame your due diligence. (City MSTR guidance)
Legal background and enforcement risk
Grapevine has a documented history of STR regulation and related litigation, which underscores that rules can evolve. The city enforces compliance through approvals, inspections, fines, and potential permit revocation. For context on prior disputes, see court background materials. (Case background: City of Grapevine v. Muns)
Strategy tips for limited STR slots
With only a few units allowed per complex and a 180-day cap, focus on quality over quantity:
- Prioritize premium floor plans, views, or amenities that command strong nightly rates.
- Cluster stays around convention and holiday peaks to lift RevPAR.
- Price for the 180-day limit and minimum 24-hour stay.
- Invest in guest screening, noise sensors that respect privacy, and professional cleaning to reduce complaints.
Ready to evaluate a DFW property?
If you are weighing a purchase in the Dallas–Fort Worth suburbs and want a clear read on neighborhood value, resale potential, and property fit, our family-led team is here to help. We pair hands-on guidance with market insight so you can move forward with confidence. Start a conversation with Hunter Realty Group.
FAQs
Are single-family short-term rentals allowed in Grapevine?
- No. The city prohibits STRs in single-family residential zoning and limits STRs to specific multifamily settings with approvals. (City FAQ)
What zoning and size must a Grapevine apartment have for STR use?
- The complex must be zoned R-MF or R-MF-2 and have at least 50 units, then secure conditional-use approval and a permit. (City MSTR guidance)
How many STR units can a qualifying complex operate in Grapevine?
- No more than 3% of the total unit count, subject to buffers, overlays, and City Council approval. (Meeting discussion)
How many nights per year can a permitted STR run in Grapevine?
- Each approved unit is limited to 180 days of operation per year, with a minimum 24-hour rental period. (Meeting discussion)
What are the permit fees and penalties for Grapevine STRs?
- Annual permits have a reported $500 fee per unit; violations can bring fines up to $2,000 and revocation, with a two-year bar on reapplying after revocation. (Local reporting)
Who handles hotel occupancy tax for Grapevine STR stays?
- Operators are responsible for remitting local tax consistent with city rules; platform collection varies, so confirm if you must remit directly to the city. (HOT context)
