Thinking about buying or selling in Frisco and wondering how short-term rental rules factor into value, cash flow, or neighborhood feel? You’re not alone. With a license cap, waitlist, and a dedicated STR tax, Frisco’s policy choices touch nearly every part of the market. In this guide, you’ll learn what the rules say, how they work day to day, and what they mean for your plans. Let’s dive in.

Frisco STR rules at a glance

• Cap on licenses: Frisco limits STR licenses to 25 percent of its residential housing stock. With about 3,600 residential units, that’s a maximum of 900 licenses. The cap took effect October 17, 2022. Town STR license page
• Waitlist in place: The cap was reached in early 2023, and the town maintains a monthly updated waitlist for new applicants. Town STR license page
• Taxes on STR stays: Frisco collects a 5 percent STR excise tax in addition to sales and lodging taxes. The town reports a total of about 15.725 percent of gross STR revenue on applicable bookings. Revenues are intended to support workforce housing programs. Town STR tax information
• Non-transferable licenses: STR licenses do not automatically transfer with a sale. Limited exemptions apply for properties under contract or with permits dated before the ordinance. Town STR license page
• Fees and timing: The application fee is $250. Licenses renew annually, typically with a February 20 to April 30 window, and expire April 30 each year. Town STR license page

How the system works for you

• Licensing basics: Each rental unit needs its own STR license. You must list a 24/7 responsible agent, follow occupancy limits, and provide a parking plan. Town STR regulations
• Occupancy and parking: Maximum occupancy is 2 people per bedroom plus 4 more. Parking must follow your approved plan. Good Neighbor Guidelines must be posted in the home. Town STR regulations
• Taxes and filing: You are responsible for filing and remitting Frisco sales, lodging, and STR excise taxes. Some platforms may collect and remit certain taxes on your behalf for bookings after platform-specific start dates, but you remain responsible for accurate filings. Town STR tax information
• Waitlist mechanics: Because licenses are capped and non-transferable, new buyers generally need to join the waitlist unless a property already holds an active license. The town contacts applicants in order as licenses open. Town STR license page

Pricing and value impacts

Academic research links STR growth to higher local rents and home prices by shifting housing from long-term to short-term use. A widely cited study found more STR listings are associated with increases in rents and sale prices, supporting the supply reallocation mechanism. Peer-reviewed study on STR impacts

In Frisco, the cap and waitlist limit additional conversions to STR use inside town limits. That can moderate fresh upward pressure from new STRs. At the same time, because licenses are scarce and non-transferable, properties with active licenses can attract buyers seeking income and may command a premium relative to similar unlicensed homes. Town STR license page

Tourism and enforcement

STRs bring visitor spending that supports local businesses, but they can also create friction around noise, parking, and trash. Frisco requires a responsible agent, Good Neighbor Guidelines, and uses compliance tools to curb unlicensed activity. Local reporting notes the town and county have worked with platforms to remove unlicensed listings. Local reporting on STR enforcement

County spillovers

Rules vary across Summit County. Unincorporated areas use a zoned approach with different license types and caps by neighborhood versus resort zones. When Frisco tightens supply, some investors look to nearby areas with more permissive rules, which can shift pressure across the region. County-level STR overview

Buyer and seller tips

For buyers

• Verify if the property is inside town limits or in unincorporated county, since rules differ by jurisdiction.
• Confirm whether the home has an active STR license and its renewal status. Licenses generally do not transfer at closing. Town STR license page
• Budget for the full STR tax load of about 15.725 percent of gross revenue and understand filing responsibilities. Town STR tax information
• Plan for compliance costs, including a 24/7 responsible agent, occupancy rules, and parking requirements. Town STR regulations
• If the home is unlicensed, check current waitlist timing with the town and model your cash flow without STR income until a license is secured. Town STR license page

For sellers

• If your home holds an active STR license, keep it in good standing through closing and assemble a clean compliance packet for buyers.
• Present neutral, factual performance data and highlight compliance steps already in place. Do not promise a license will transfer. Town STR license page
• Be ready to position your home for both income-focused and lifestyle buyers, since the cap creates distinct buyer segments.
• Explain the STR tax structure clearly to help buyers underwrite accurately. Town STR tax information

Bottom line for Frisco

Frisco’s STR cap, taxes, and compliance rules shape how properties are used, how they are valued, and how you plan a purchase or sale. Licensed homes can trade differently than similar unlicensed properties, and waitlist timing matters. If you want a clear path tailored to your goals, local guidance makes all the difference.

Ready to talk strategy for your next move in Summit County? Connect with Samantha Meister for aligned advice and a plan that fits your timeline.

FAQs

What should first-time Frisco buyers know about STRs?

• Licenses are capped and non-transferable, so you typically cannot assume STR use at closing unless the home already holds an active license or qualifies for a limited exemption. Check the town’s waitlist and rules. Town STR license page

What is the total tax rate on Frisco STR stays?

• The town reports about 15.725 percent of gross STR revenue, including a 5 percent STR excise tax intended to support workforce housing programs. Town STR tax information

Can an STR license transfer when I sell my Frisco home?

• Generally no. Licenses do not automatically transfer with a sale, which is why licensed properties can carry distinct market dynamics. Town STR license page

What are Frisco’s occupancy and parking rules for STRs?

• Maximum occupancy is 2 people per bedroom plus 4, and you must provide a parking plan and designate a 24/7 responsible agent. Good Neighbor Guidelines must be posted. Town STR regulations

How do Frisco’s rules differ from unincorporated Summit County?

• Unincorporated areas use a zoned system with different license types and caps by neighborhood versus resort zones, creating a patchwork across the county. Verify the property’s jurisdiction and applicable rules. County-level STR overview