Short-Term Rental Zoning and the Right to Lease

·Jun 19, 2026The United States Court of Appeals for the Fifth Circuit recently affirmed a lower court's decision to uphold a New Braunfels, Texas, zoning ordinance that restricts short-term rentals in residential areas. Property owners challenged the law, arguing that it violated their due process and equal protection rights under both federal and state constitutions. The court determined that Texas law does not recognize a vested property right to lease a home on a short-term basis, particularly for those who bought property after regulations were already established. Furthermore, the judges ruled that the city’s distinction between short-term and long-term stays is a rational exercise of local authority intended to preserve neighborhood character. Ultimately, the court concluded that municipal line-drawing regarding land use is entitled to significant deference and does not require extensive empirical proof to be deemed constitutional.