🎯 STRisker: Bulletin - Dallas, TX
Dallas Gets Denied Again: Appeals Court Blocks Short-Term Rental Ban
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Dallas Gets Denied—Again: Appeals Court Blocks Short-Term Rental Ban
Dallas just got handed another “no” from the appeals court in its ongoing battle to rein in short-term rentals. In a major win for STR advocates, the court again ruled against the city’s proposed ban—a move that would have effectively shut down 90% of Airbnbs and Vrbos in single-family zoned neighborhoods.
This July 2025 ruling comes on the heels of a February decision that blocked Dallas from enforcing the controversial ordinance. After that first loss, the city doubled down and requested what's called an en banc rehearing—essentially asking a larger group of appellate judges to weigh in. But once again, the court said no.
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At the heart of the case is the Dallas Short-Term Rental Alliance, a group of local property owners and hosts fighting to protect what they see as their rights under Texas law. The court agreed, ruling the group had shown enough proof that the ordinance would cause “probable, imminent, and irreparable injury” to their vested property rights. In simple terms: if Dallas had been allowed to enforce this ban, thousands of people would’ve lost legal use of their homes overnight.
The city tried to argue that many STR owners weren’t paying hotel occupancy taxes, but the court wasn't swayed. They pointed out that the city never showed legal precedent tying tax nonpayment to a reason for blocking an injunction.
As if that weren’t enough, the court also ordered Dallas to pay the legal fees for the STR Alliance—adding insult to injury for the city’s legal team.
This decision doesn’t mean the STR wars are over. A nearby case in Fort Worth came down on the opposite side, with courts upholding that city's STR ban in residential zones. That split decision could eventually push the issue to higher courts—or prompt lawmakers to bring clarity at the state level.
For now, though, Dallas STR owners are breathing a sigh of relief. The proposed ban is blocked, their listings stay up, and the battle over what neighborhoods should look like—and who gets to profit from them—rages on.
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