No Constitutional Right to STRs, Federal Court Rules in New Braunfels Case

6/29/2026

A federal appellate court has upheld New Braunfels’ (Texas) restrictions on short-term rentals, ruling that there is no constitutional right for property owners to use their homes as short-term rental properties. The case involved homeowners who challenged city zoning rules that prohibit rentals of less than 30 days in certain residential districts, arguing the restrictions violated due process and equal protection rights. The Fifth Circuit rejected those claims, finding that courts have not recognized a vested right to short-term leasing and that cities may reasonably regulate rentals to preserve neighborhood character and address nuisances. The court also upheld the city’s zoning distinctions, saying local governments are allowed to draw lines—such as 29 versus 30 days—as part of legitimate regulatory frameworks.

Texas Scorecard (06/25/26)