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AUSTIN, TEXAS · LANDLORD GUIDE

Austin landlord startup checklist: 58¢ tax rate, $1,729 rents, five-dwelling rule

Starting an Austin rental in 2026: a city tax rate of $0.579948 per $100 (FY2026-27), the highest median gross rent of the big Texas cities at $1,729, FY2026 Fair Market Rents that fell from FY2025, and a five-dwelling threshold that changes your eviction paperwork.

Austin in September 2026, in numbers: the city’s property tax rate for fiscal year 2026-27 is $0.579948 per $100 of taxable value, up from $0.524017 the year before; the median gross rent in the city was $1,729 in the Census Bureau’s 2020–2024 estimate, the highest among the five largest Texas cities; HUD’s FY2026 Fair Market Rents for the metro fell from FY2025, with a two-bedroom at $1,852; and a landlord who owns five or more dwellings must follow a city-specific pre-eviction notice. No registration is required for a house unless it collects code violations. The five steps below source each figure.

Step 1 — The TCAD record

The Travis Central Appraisal District appraises “all property in Travis County at one hundred percent market value”; its record gives the owner of record, the appraised value and the taxing units. Austin addresses in Williamson or Hays County are on those counties’ appraisal districts instead, and the city’s own code defines the “Austin Metro Area” as Travis, Williamson, Hays, Bastrop and Caldwell counties. Save the record with its date.

Step 2 — Count your dwellings

Austin’s Chapter 4-14, Article 2 applies to “a landlord who owns five or more dwellings.” At four dwellings the state eviction notice rules apply alone; at five, a bilingual notice of proposed eviction with at least a seven-day cure period must precede any notice to vacate. If a fifth purchase is in your plans, build the notice form now. Details are in the Austin lease guide.

Step 3 — Registration: none unless violations accumulate

Austin registers rental property only under the repeat-offender conditions of Chapter 4-14, Article 1: two or more uncorrected notices of violation in 24 months, or two or more citations in 24 months, for technical-code, sanitation, pool or permit violations. Registration then lasts at least five years with an annual fee set by ordinance. A short-term rental of under 30 days needs an operator’s license under Chapter 4-23. The Austin registration guide covers both.

Step 4 — Budget the FY2026-27 rate and the whole bill

The city’s tax rate page lists, for fiscal year 2026-27, a property tax rate of $0.579948 per $100 of taxable value (no-new-revenue rate $0.535466, debt rate $0.135312), against $0.524017 in fiscal year 2025-26 (City of Austin — Tax rates). The council’s budget announcement estimated the effect on “the typical Austin tax-and ratepayer” at $9.48 a month in property tax plus $14.34 a month in city rates and fees including electricity, water and drainage (budget approval, fiscal year 2026-2027). Travis County, the school district, Austin Community College and Central Health add their rates; the TCAD record lists them. The same page gives a hotel occupancy tax of 11%, relevant only to short stays.

Step 5 — Price against two benchmarks and settle the voucher policy

The Census Bureau’s 2020–2024 estimate: median gross rent $1,729, owner-occupied rate 43.4%, median owner-occupied home value $555,300, population 1,002,632 on July 1, 2025 (Census QuickFacts, Austin city). HUD’s FY2026 Fair Market Rents for the Austin–Round Rock–San Marcos MSA (HUD FY2026 FMR):

HUD FAIR MARKET RENTS — AUSTIN-ROUND ROCK-SAN MARCOS MSA (GROSS RENT, PER MONTH)
UnitFY2026 FMRFY2025 FMR
Efficiency$1,474$1,549
One bedroom$1,562$1,650
Two bedrooms$1,852$1,949
Three bedrooms$2,347$2,484
Four bedrooms$2,760$2,882

Every bedroom size fell between FY2025 and FY2026 — a rare direction for a Texas metro and a signal to price carefully. On vouchers, Local Government Code §250.007 bars a Texas city from requiring landlords to accept federal housing assistance income except to protect veterans; the policy is yours, applied consistently and in writing. The Housing Authority of the City of Austin administers the city’s Housing Choice Voucher program.

What changes in Austin

  • City tax rate of $0.579948 per $100 for FY2026-27, up from $0.524017 — a larger one-year increase than Houston, San Antonio or Dallas.
  • Highest median gross rent of the five big Texas cities: $1,729 (Census 2020–2024), with a $555,300 median home value.
  • FY2026 Fair Market Rents fell from FY2025 at every bedroom size.
  • Owning five or more dwellings triggers the city’s notice of proposed eviction requirement.
  • No rental registration unless the property becomes a repeat code offender.

Frequently asked questions

What is the City of Austin property tax rate for 2026-27?

$0.579948 per $100 of taxable value, adopted in August 2026 (City of Austin — Tax rates). The FY2025-26 rate was $0.524017. County, school, college and health district rates are added.

Do I need to register a rental house in Austin?

Not unless it becomes a repeat offender: registration under Chapter 4-14 is triggered by two uncorrected notices of violation or two citations within 24 months. Short-term rentals under 30 days need an operator’s license.

What is the HUD Fair Market Rent for Austin in 2026?

$1,852 for a two-bedroom unit and $1,562 for a one-bedroom in the Austin–Round Rock–San Marcos MSA for FY2026, down from $1,949 and $1,650 in FY2025 (HUD).

Can I decline voucher applicants in Austin?

State law bars the city from requiring acceptance of federal housing assistance income, except to protect veterans (Local Government Code §250.007); federal fair housing law applies to all other protected characteristics.

Sources

Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.

General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.

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