Short-term rental owners in Oak Ridge North now have one more box to check if they want to remain eligible to apply for permits: a current address on file with the city. The Oak Ridge North City Council voted 5-1 on Monday to approve an updated ordinance that places the burden squarely on property owners, and those who fail to comply become ineligible to reapply for a permit for a full year.
The vote, reported by Community Impact, took effect immediately. City Attorney Brandon Morris presented the details of the new rule to council, telling members that owners are responsible for keeping their address on file updated. Morris noted that the change prevents the city from wasting municipal resources trying to track down non-compliant property owners, according to the same outlet's reporting.
Building on a 2024 Ban
Monday's update expands on rules Oak Ridge North first put in place in 2024, when the council banned all new short-term rentals within city limits while grandfathering in properties that already existed. Those older, pre-existing rentals still operate under strict regulations covering occupancy, parking, and trash collection, per the news outlet's report. At the time, city officials cited noise and traffic disruptions caused by transient visitors unfamiliar with local rules as the reason for cracking down, the report notes.
Oak Ridge North is a small city of roughly 3,034 residents sitting along Interstate 45 in Montgomery County, directly adjacent to The Woodlands, according to Texas Demographics. The city has updated its rental rules since 2024.
Texas Courts Back Municipal Authority
Oak Ridge North's tightening comes as courts across Texas continue to side with cities on short-term rental restrictions. In June, the U.S. Fifth Circuit Court of Appeals ruled in Marfil v. New Braunfels that Texas municipalities have the constitutional right to restrict short-term rentals under 30 days in residential districts, as reported by Fox 7 Austin. The ruling found that property owners do not hold an inherent constitutional right to short-term leasing, rejecting due process and equal protection claims by finding cities have a rational basis to preserve single-family residential character.
A Texas state district court addressed Fort Worth's short-term rental ordinance in March 2025, according to WFAA.
Why Cities, Not HOAs, Set the Rules
Much of that municipal authority traces back to Chapter 211 of the Texas Local Government Code, which addresses cities' zoning authority to regulate or restrict short-term rentals, per the Texas Municipal League. State guidelines also specify that municipal permit fees must stay reasonably tied to the actual administrative cost of regulation, the league notes.
Homeowners associations, by contrast, have less power to restrict rentals on their own. The Texas Supreme Court ruled in 2018's Tarr v. Timberwood Park Owners Ass'n that standard single-family residential deed covenants do not prohibit short-term rentals unless explicit language limiting rental duration is written into the covenants, according to Rogers & Elliott, PLLC. Courts will not infer a short-term rental ban from general residential-use language, the group explains. City ordinances like Oak Ridge North's are used to regulate short-term lodging.
Tax Rules Still Apply Regardless of Local Bans
Texas offers no statewide short-term rental license, leaving permits and zoning decisions entirely to local governments. Cities and counties may also impose local hotel occupancy taxes, according to WonderGuest.
For Oak Ridge North, the new address-verification requirement gives the city a straightforward way to track compliance without the resource drain city attorney Morris flagged to council.
