A two-year battle between Fort Worth neighborhoods and Airbnb-type rentals may be over
The city of Fort Worth prevailed in a lawsuit challenging its rules on short-term rentals like those listed on Airbnb and VRBO.
Short-term rental operators sued the city in June 2023 alleging the rules violated their property rights. But a Tarrant County District Court judge on Thursday ruled that Fort Worth had the authority to make that regulation.
The ruling comes just over two years after the City Council passed new zoning rules prohibiting short-term rentals in single family neighborhoods. The city’s rules also require operators to register and pay all applicable taxes.
Members of the Texas Neighborhood Coalition, a group opposing the proliferation of short-term rentals, celebrated the decision.
“These unstaffed mini-hotels are completely incompatible with the nature and character of residential neighborhoods. They supplant long-term residents with a revolving door of strangers,” said the group’s co-founder, David Schwarte, in a statement.
He also said short-term rentals threaten neighborhood security and the sense of community that leads people to buy homes in residential neighborhoods.
Lauren Brady, president of the Fort Worth Short-Term Rental Alliance, declined to comment Tuesday on the court’s decision, saying she needed to brief the other plaintiffs before speaking publicly.
“The City of Fort Worth appreciates the Court’s ruling in the short-term rental litigation, which reinforces the City’s authority to regulate STRs,” said city spokesperson Reyne Telles, adding the decision is significant not only for Fort Worth, but other cities around Texas facing similar challenges to their regulations.
“The ruling underscores the City’s commitment to maintaining the character of its neighborhoods and ensuring a balanced approach to land use,” Telles said. “Fort Worth will continue to defend its position in any appeal and remains dedicated to policies that protect residents and support responsible short-term rental practices.”
Fort Worth defines short-term rentals as any property rented out for less than 30 days. The city passed rules in 2018 banning short-term rentals from residential neighborhoods, such as Arlington Heights or Como, but allowing them in mixed-use districts like the Near Southside and downtown.
Property owners that want to operate a short-term rental in a residential neighborhood need to go through the city’s zoning process.
At least two have tried since Fort Worth updated its rules in 2023. Both were rejected by the City Council.
This story was originally published March 11, 2025 at 3:53 PM.
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