Texas Scorecard by Travis Morgan June 25, 2026
Appellate court affirms cities can restrict Airbnb-style leasing to protect residential character and property values. A federal appellate court has upheld the City of New Braunfels’ regulations on short-term property rentals.
The case highlights an ongoing debate over whether a homeowner’s assumed right to lease their property on a short-term basis outweighs a local government’s interest in preventing nuisances and protecting the residential character of its neighborhoods.
BackgroundIn 2006, the City of New Braunfels enacted a comprehensive zoning ordinance.
This included certain restrictions on the occupancy of one- or two-unit dwellings “for less than 30 consecutive days” outside of certain commercial districts. It also prohibited short-term rentals in certain districts that are zoned “residential.”
The ordinance was amended in 2011 to significantly expand the regulation of short-term rentals.
Rafael Marfil, Verge Productions LLC, Enrico Marfil, Naomi Marfil, Korey Rholack, Daniel Olveda, and Douglas Mathes purchased their New Braunfels properties between 2011 and 2018, all located in residential zoning districts where short-term rentals are prohibited.
The ordinance contains a provision allowing property owners to apply for a zoning change to their property for the purpose of engaging in short-term rentals. Each of the aforementioned property owners, other than Mathes, applied for a zoning change and was denied.
In response, the property owners filed a federal lawsuit against the City of New Braunfels in the U.S. District Court for the Western District of Texas, arguing that the ordinance violated their rights under the Due Process and Equal Protection Clauses of the U.S. and Texas Constitutions.
More:
https://texasscorecard.com/state/no-constitutional-right-to-short-term-rentals-federal-court-rules-in-new-braunfels-case/
