St. Louis Imposes New 3% Fee on Short-Term Rental Income

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The city of St. Louis, Missouri has implemented a new law that requires short-term rental (STR) operators to pay a 3% fee on all rental income. The law also mandates that STR operators obtain a city business license. At least half of the fee revenue will go towards an affordable housing fund, with the rest funding other housing initiatives.

Why it matters

The new STR fee is part of the city's efforts to regulate the short-term rental market and generate revenue for affordable housing programs. This comes as St. Louis had previously passed an ordinance in 2024 to further regulate STRs, though enforcement of that law has been paused due to a legal challenge.

The details

The new 3% STR fee law went into effect on February 23, 2026 after voters approved Proposition S in November 2024. The ordinance defines an STR as a rental of 30 days or less, makes operators responsible for paying the fee quarterly, and authorizes the city to collect the fee. It also allows the city to partner with rental platforms like Airbnb and Vrbo to facilitate fee collection. Violations can result in fines of up to $500 per day.

• The new 3% STR fee law went into effect on February 23, 2026.
• Voters approved Proposition S, which led to the new fee, in November 2024.

What’s next

The city is currently pausing enforcement of its 2024 STR ordinance, which included other regulations like permit requirements, while a legal challenge to the $150 application fee is resolved.