Argyle & Northlake Short-Term Rental Rules

October 2026 Update: Argyle Is Considering Major Changes to Its Short-Term Rental Rules

On October 7, 2026, Argyle's Planning and Zoning Commission discussed a draft rewrite of the Town's short-term rental ordinance. As reported by the Cross Timbers Gazette on October 9, 2026, the draft would prohibit short-term rentals in residentially zoned areas, limit rentals to five commercial zoning districts, raise the annual permit fee from $100 to $500, and require residential operators to close within 90 days with no grandfathering.

This is a proposal, not adopted law. As of mid-October 2026, the commission had not taken final action: the draft was pending town attorney review before moving to the Town Council for consideration. Argyle's current registration program under Ordinance 2023-27 remains in effect until a new ordinance is formally adopted. Anyone relying on short-term rental income in Argyle should track the Town's Agenda Center for the council meeting where the rewrite is considered, and should not assume existing residential rentals will be grandfathered.

The details below describe the rules in effect as of the original source review date, October 8, 2026. This update does not change Northlake's rules, which are unchanged.

Quick Answer

Argyle regulates short-term rentals by registration under Ordinance 2023-27 (Article 4.07), with a $100 registration fee, one-year registration validity and annual renewal, quarterly hotel occupancy tax reporting, and a published 7% town hotel occupancy tax.
Northlake regulates short-term rentals by permit under Article 5.11 (Ordinance 23-1109B): compensated overnight rentals of a residence for less than 30 consecutive days, operated more than 14 calendar days out of 365, with a $60 initial per-unit fee, a $30 annual renewal, an occupancy cap of two people per bedroom plus two (maximum 12), two off-street parking spaces, and special-use designation in the RR, CRO, RE and MU districts.
Northlake's separately defined vacation-home category, rentals operated for no more than 14 calendar days out of 365, is exempt from the permit requirement but retains hotel occupancy tax obligations; it is not unrestricted permission to rent.
Northlake permits expire upon transfer of more than 50% of the property's ownership interest; do not assume a seller's permit transfers with the property.
Argyle's published STR rules describe a one-year registration and a $100 registration fee, but do not specify how a sale affects an active registration; buyers should not assume a seller's registration carries over and should confirm with Argyle Development Services before operating the property as a short-term rental.
A town registration or permit does not override HOA covenants, deed restrictions, lender terms or insurance requirements; each must be verified separately for the exact property.
Before relying on rental income, confirm jurisdiction, the town step, the zoning district, the HOA and deed restrictions, occupancy and parking rules, hotel occupancy tax obligations, insurance coverage and lender approval, in writing.

Theresa De La Rosa's Broker Perspective

I'm Theresa De La Rosa, Broker of Covenant Heritage Realty in Northlake. Short-term rental questions come from two directions: investors looking at a home as an income property, and buyers worried a neighboring home will operate as one. My answer to both is the same: the town requirement is the easy part, and the property-specific part is the hard part. Argyle and Northlake both have real programs with real forms, fees and tax obligations, and both sit underneath HOA covenants that can contradict the town entirely. I do not promise a property can rent short-term until the town step, the zoning district, and the HOA or deed restrictions have all confirmed it in writing.

Argyle: Registration Under Ordinance 2023-27

Argyle's short-term rental program is a registration program. The Town Council approved Ordinance 2023-27 on August 21, 2023, adding Article 4.07, "Short Term Rentals," to Chapter 4 (Business Regulations) of the Town's Code of Ordinances, with the stated purpose of establishing registration requirements. Under the program, a short-term rental or tourist home is the rental of any residence or residential structure, or a portion of one, for a period of less than 30 days, which includes homes listed on Airbnb, Vrbo, HomeAway and similar platforms.

How you register. Owners register through the Town's online permitting portal under the Building and Zoning Applications section; the Community Development Department administers the program, and submittal checklists are posted in the portal.
What you file each year. Once registered, STR owners must file a quarterly Hotel Occupancy Tax Report with the Town. The first quarter runs October 1 through December 31. The Town's published hotel occupancy tax is 7%. That rate is the town tax, not the total of all potentially applicable taxes; confirm with the Town or a tax professional what else applies to a specific rental.
Fees and renewal. The Town's official Short Term Rental Program page confirms a $100 registration fee, a registration valid for one year, and annual renewal. Confirm the current fee with the Town's Community Development Department before budgeting.
Ownership transfer. Argyle's published STR rules describe a one-year registration and a $100 registration fee, but do not specify how a sale affects an active registration. Buyers should not assume a seller's registration carries over. Confirm with Argyle Development Services whether a new application is required and what fee applies before operating the property as a short-term rental. The Town's Short Term Rental Program page lists Community Development at (940) 464-7273 for other STR questions. Update this passage if the Town later confirms the transfer process; record the date and department contacted.
Registration versus zoning. Article 4.07 sits in the Town's business regulations, and the registration program does not list a separate zoning approval or special use permit as part of the application. That is a registration step, not a zoning approval: confirm the property's jurisdiction and zoning district with the Town before applying, and review the acreage and zoning considerations that apply to the exact property.

Northlake: Permit Under Article 5.11 (Ordinance 23-1109B)

Northlake's program is a permit program, adopted November 9, 2023, as Article 5.11 of Chapter 5, with the stated purpose of allowing short-term rental of private residences while preventing adverse impacts to residential neighborhoods from excessive traffic and noise. Northlake defines a short-term rental as the rental for compensation of any residence or residential structure (or a portion) located in a zoning district where the residential use is lawful, for the purpose of overnight lodging for a period of less than 30 consecutive days, operated for more than 14 calendar days out of 365.

Northlake also separately defines a vacation-home category for rentals operated for no more than 14 calendar days out of 365. The ordinance exempts that category from the short-term rental permit requirement, but it is not unrestricted permission to rent: hotel occupancy tax obligations still apply, and the property must still comply with zoning, private restrictions, insurance and other requirements. Article 5.11 does not impose a general owner-occupancy requirement on this category.

Permit application. An application is submitted on the Town's forms with the application fee. Northlake's Short-Term Rental Registration form requires: no external signage, working smoke alarms, a working carbon monoxide alarm, a working 5-pound ABC-rated fire extinguisher, a stated maximum number of occupants, proof of liability insurance, a floor plan, a sample occupant notification package, an evacuation plan posted in each room, and registration with the Finance Department for hotel occupancy tax. The application must include the owner's information and signature, or a signed owner authorization on the Town's form; the owner need not personally submit the application if another applicant has the required owner authorization.
Occupancy limit. No more than two people per bedroom plus two additional people, with an absolute maximum of 12 persons per unit.
Parking. Section 10.4 (Schedule of Off-Street Parking Requirements) of the Town's parking standards requires two off-street parking spaces per dwelling unit for a vacation or short-term rental.
Zoning. The Town's permitted use table (Table 5.2) lists "Vacation / Short Term Rental" as a special (specific) use in the RR (Rural Residential), CRO (Conservation Residential Overlay), RE (Residential Estate) and MU (Mixed Use) districts, and does not show it as permitted in MH (manufactured housing), C (commercial) or I (industrial) districts. The permit under Article 5.11 and the zoning approval are separate steps: the use table, not Article 5.11 alone, determines whether the use is allowed in the property's district.
Fees. The Town's fee schedule (Section A3.006, Short-term rental fees) and application form list an initial fee of $60 per unit and an annual renewal fee of $30 per unit.
Permit transfer. Permits are not transferable: a permit expires upon transfer of more than 50% of the property's ownership interest, and the new owner must submit a new permit application before operating. Do not assume a seller's permit transfers with the property.
Owner-occupancy. Article 5.11 does not impose a general owner-occupancy requirement for either a standard short-term rental or the limited-operation vacation-home category. Owner occupancy is mentioned only as one factor the Board of Adjustment may consider when reviewing a density-limit exception, not as a general permit requirement. No minimum-distance-between-rentals rule was found in the accessible text; confirm with the Town if it matters to your plan.

How Zoning and Private Restrictions Affect Properties in Each Town

Town rules and private rules are two different gates, and both must open for a legal, workable rental. Zoning decides whether the use is allowed at the address at all: in Northlake that is a published special-use designation by district in the permitted use table, and in Argyle the registration program does not list a separate zoning step, so confirm the property's district with the Town. A registration or operating permit is not a zoning approval, and neither one overrides the other. Private restrictions come next and are often the binding constraint in master-planned communities: HOA covenants, declarations and deed restrictions can prohibit short-term rentals outright, cap lease terms, require board approval, or limit occupancy, independent of what the town allows. A town registration or permit does not override them.

Argyle and Northlake at a Glance

Town	Program	Definition/category	Published fee	Renewal/transfer	Zoning verification	Hotel-tax source
Argyle	Registration (Ordinance 2023-27, Article 4.07)	Rental of a residence or residential structure for less than 30 days	$100 registration fee	One-year registration validity with annual renewal; the published rules do not specify how a sale affects an active registration, so buyers should not assume a seller's registration carries over; confirm with Argyle Development Services whether a new application and fee apply	Registration program; no separate zoning approval listed. Confirm the property's district with the Town	7% town hotel occupancy tax (Town of Argyle Hotel Occupancy Tax Report)
Northlake	Permit (Article 5.11, Ordinance 23-1109B)	Compensated overnight rental of a residence for less than 30 consecutive days, operated more than 14 calendar days out of 365; vacation homes (no more than 14 operating days out of 365) are exempt from the permit but retain hotel occupancy tax obligations	$60 initial per unit; $30 annual renewal per unit	Annual renewal; permit expires upon transfer of more than 50% of the property's ownership interest	Special use in RR, CRO, RE and MU districts (Table 5.2); two off-street parking spaces per unit (Section 10.4)	Hotel occupancy tax registration with the Finance Department (permit application)

What a Buyer Should Confirm Before Relying on Rental Income

If rental income is part of your purchase plan, confirm each of these in writing before closing:

Jurisdiction. Confirm which jurisdiction governs the property: Argyle, Northlake, or unincorporated Denton County. Each town's rules apply only within its limits, and the address and tax records determine jurisdiction.
The town step. For Argyle, the current registration process, the $100 fee with one-year validity and annual renewal, and the quarterly hotel occupancy tax report; for Northlake, the permit application, the $60 initial and $30 renewal fees as applicable, and the Finance Department hotel occupancy tax registration. Confirm the current fee schedule directly with each town, since fees change by ordinance.
The zoning district of the exact property. Verify the address's district with the town (Northlake's permitted use table; Argyle's development standards) rather than assuming a residential address qualifies. For Argyle acreage, review the acreage zoning considerations buyers should verify.
Permit and registration transfer. If you are buying a Northlake property with an existing short-term rental permit, the permit expires upon transfer of more than 50% of the property's ownership interest; plan for a new permit application and do not assume the seller's permit transfers. For an Argyle property, the published rules do not specify how a sale affects an active registration; do not assume the seller's registration carries over, and confirm with Argyle Development Services whether a new application is required and what fee applies.
HOA and deed restrictions. Read the covenants, restrictions and HOA rules for the subdivision, ask the HOA or management company in writing whether short-term rentals are allowed, and keep the answer.
Occupancy and parking rules. Northlake caps occupancy at two per bedroom plus two (maximum 12) and requires two off-street spaces; confirm Argyle's occupancy treatment if any with the Town.
Tax obligations. Hotel occupancy tax reporting is separate from property taxes; confirm the filing cadence (Argyle requires a quarterly report at its 7% town rate) and registration with the applicable finance department.
Insurance and lending. Confirm your lender allows short-term rental use under your mortgage terms and that your homeowners insurance covers rental use; standard policies often do not.

Frequently Asked Questions

Are short-term rentals allowed in Argyle, Texas?

Yes, with registration. The Town of Argyle adopted Ordinance 2023-27 (August 21, 2023), adding Article 4.07 to Chapter 4, which requires short-term rentals, rentals of a residence for less than 30 days, to register through the Town's online permitting portal and file a quarterly hotel occupancy tax report. The official program page confirms a $100 registration fee, one-year registration validity and annual renewal, and the Town's published hotel occupancy tax is 7%, identified as the town tax. Confirm the current fee and process with the Town's Community Development Department.

Is Argyle changing its short-term rental rules in 2026?

Argyle is considering it, but nothing has been adopted yet. On October 7, 2026, the Planning and Zoning Commission discussed a draft rewrite that would prohibit short-term rentals in residentially zoned areas, limit rentals to five commercial zoning districts, raise the permit fee from $100 to $500, and require residential operators to close within 90 days with no grandfathering. As of mid-October 2026 the draft was pending town attorney review before going to the Town Council, and the current registration program under Ordinance 2023-27 remains in effect. Track the Town's Agenda Center for the council meeting where the rewrite is considered.

Does the Town of Northlake have rules for short-term rentals?

Yes. Northlake adopted Ordinance 23-1109B (November 9, 2023), adding Article 5.11 to Chapter 5, which requires a permit for compensated overnight rentals of a residence for less than 30 consecutive days, operated more than 14 calendar days out of 365. The initial fee is $60 per unit with a $30 annual renewal, occupancy is capped at two people per bedroom plus two (maximum 12), two off-street parking spaces are required, and the use is a special use in the RR, CRO, RE and MU districts.

What is Northlake's vacation-home category?

Northlake separately defines a vacation-home category for rentals operated for no more than 14 calendar days out of 365. The ordinance exempts that category from the short-term rental permit requirement, but hotel occupancy tax obligations still apply and zoning, private restrictions and insurance requirements remain. Article 5.11 does not impose a general owner-occupancy requirement on this category. It is not unrestricted permission to rent.

Does Northlake require the owner to live in the rental or personally apply for the permit?

No. Northlake Article 5.11 does not impose a general owner-occupancy requirement for either a standard short-term rental or the limited-operation vacation-home category. A standard STR permit application must include the owner's information and signature, or a signed owner authorization on the Town's form, and the owner need not personally submit the application if another applicant has the required owner authorization. Owner occupancy is mentioned only as one factor the Board of Adjustment may consider when reviewing a density-limit exception, not as a general permit requirement.

Which town's rules apply to a property?

Jurisdiction depends on the property's address and municipal boundaries. Argyle's and Northlake's rules apply only within their town limits, and properties outside both fall under Denton County rules. Confirm jurisdiction with the applicable town or county before planning a rental.

If I buy a Northlake property with an existing short-term rental permit, does the permit transfer?

No. Northlake permits are not transferable: a permit expires upon transfer of more than 50% of the property's ownership interest, and the new owner must submit a new permit application before operating. Do not assume a seller's permit transfers with the property.

If I buy an Argyle property with an existing short-term rental registration, does the registration transfer?

Argyle's published STR rules describe a one-year registration and a $100 registration fee, but do not specify how a sale affects an active registration. Buyers should not assume a seller's registration carries over. Confirm with Argyle Development Services whether a new application is required and what fee applies before operating the property as a short-term rental. The Town's program page lists Community Development at (940) 464-7273 for other STR questions.

Can an HOA stop me from short-term renting even if the town allows it?

Yes. HOA covenants, declarations and deed restrictions are private agreements that can prohibit short-term rentals, cap lease terms or require approval, and a town registration or permit does not override them. Read the governing documents and get written confirmation from the HOA before relying on rental income.

What should I check before buying a home to use as a short-term rental in these towns?

Confirm jurisdiction, the town registration or permit and its current fees, the zoning district of the exact address, HOA and deed restrictions, occupancy and parking rules, hotel occupancy tax registration, lender approval for rental use, and insurance that covers short-term rental activity, all in writing.

Conclusion

Argyle and Northlake both have working short-term rental programs, and both are narrower than the phrase "short-term rentals allowed" sounds: Argyle requires registration with a $100 fee, one-year validity, annual renewal, quarterly tax reporting and a 7% town hotel occupancy tax; Northlake requires a permit for rentals operated more than 14 days out of 365, with a separate vacation-home category, district-by-district special-use zoning, occupancy and parking rules, and fees. On top of both sit HOA covenants and deed restrictions that can say no regardless of what the town says. A buyer who confirms jurisdiction, the town step, the zoning district, the private restrictions, the tax obligations, insurance and lending terms in writing before closing is the buyer who is not relying on a well-marketed guess.

Compare the full picture of each town in the Argyle relocation guide and the Northlake relocation guide, review the acreage zoning article for Argyle acreage purchases, or reach out through the contact page to go through the checklist for a specific property.

Theresa De La Rosa, Broker, REALTOR®

Covenant Heritage Realty, LLC | In DFW Living Group

Texas Real Estate Broker, License #807294, with more than 18 years of real estate experience. Theresa serves sellers, buyers and relocating households throughout Argyle, Northlake, Justin, Denton, Flower Mound and the surrounding Denton County communities. Equal Housing Opportunity.

Sources

Cross Timbers Gazette, Argyle considers more regulations on short-term rental properties (October 9, 2026; P&Z draft rewrite, five commercial districts, $500 fee, 90-day closure, no grandfathering, status pending town attorney review): crosstimbersgazette.com. Accessed October 13, 2026.
Town of Argyle, Short Term Rental Program (registration fee, one-year validity, annual renewal; page lists Community Development at (940) 464-7273 for STR questions): argyletx.com. Accessed October 8, 2026.
Town of Argyle, Hotel Occupancy Tax Report (7% town hotel occupancy tax, quarterly filing): argyletx.com (PDF). Accessed October 8, 2026.
Town of Northlake Code of Ordinances, Article 5.11, Short-Term Rentals (Ordinance 23-1109B; definition, vacation-home category, permit transfer, owner-occupancy and applicant requirements): ecode360.com. Accessed October 8, 2026.
Town of Northlake, Short-Term Rental Permit Application (application requirements, $60 initial fee, Finance Department hotel occupancy tax registration): town.northlake.tx.us. Accessed October 8, 2026.
Town of Northlake, Business Related Fees (Section A3.006, short-term rental fees): ecode360.com. Accessed October 8, 2026.
Town of Northlake Unified Development Code, Article 5, Table 5.2 Permitted Use Table (Vacation / Short Term Rental special use by district): ecode360.com. Accessed October 8, 2026.
Town of Northlake Unified Development Code, Article 10, Section 10.4 Schedule of Off-Street Parking Requirements (two spaces per dwelling unit): ecode360.com. Accessed October 8, 2026.
Town of Northlake, Residential Permits and Information (short-term rental permit type): town.northlake.tx.us. Accessed October 8, 2026.

Editorial verification note. Sources reviewed October 8, 2026, with an additional update review on October 13, 2026. Argyle program details (Ordinance 2023-27, Article 4.07, registration portal, quarterly HOT report, less-than-30-day definition, $100 registration fee with one-year validity and annual renewal, 7% town hotel occupancy tax) are from the Town of Argyle's official program page and document center. Argyle's published rules do not specify how a sale affects an active registration, and as of the source review date the Town has not confirmed the transfer process; confirm with Argyle Development Services whether a new application is required and what fee applies before assuming a registration carries over. On October 7, 2026, Argyle's Planning and Zoning Commission discussed a draft rewrite of the STR ordinance that would prohibit short-term rentals in residentially zoned areas, limit rentals to five commercial zoning districts, raise the permit fee from $100 to $500, and require residential operators to close within 90 days with no grandfathering; as of October 13, 2026, the draft was pending town attorney review before going to the Town Council, and no ordinance had been adopted, per the Cross Timbers Gazette (October 9, 2026). Northlake details (Article 5.11 definition, vacation-home category, permit application requirements, occupancy cap, parking spaces, zoning designations, $60 initial and $30 renewal fees, permit transfer rule) are from the Town's codified ordinances, application form, fee schedule, permitted use table and parking standards. Northlake Article 5.11 does not impose a general owner-occupancy requirement for standard short-term rentals or the vacation-home category; a permit application must include the owner's information and signature or a signed owner authorization, and owner occupancy is only one factor the Board of Adjustment may consider for a density-limit exception. No minimum-distance-between-rentals rule was found in the accessible Northlake text. This article is general educational information, not legal or tax advice; verify current ordinances, fees and property-specific requirements with the applicable town.

Short-Term Rental Rules in Argyle and Northlake, Texas