Long-term rental of a Lexington ADU is allowed only when the owner-occupancy rule in Zoning Ordinance Section 3-12 is satisfied - meaning the owner must live in either the main house or the ADU - and the ADU's occupancy is capped at two persons plus related children. Short-term rental of an ADU requires a conditional use permit from the Board of Adjustment under the December 2024 STR ordinance, with strict density caps: no permit if 2% of homes within 1,000 feet are already STRs or any unhosted STR exists within 600 feet.
Lexington's rental framework for ADUs is one of the more restrictive in the country. Long-term: Section 3-12 caps ADU occupancy at two persons (plus related or custodial children) and requires the owner to occupy either the main dwelling or the ADU. The long-term rental is then governed by Kentucky's Uniform Residential Landlord and Tenant Act (KRS Chapter 383). LFUCG Code Enforcement maintains a landlord and rental registry tied to Chapter 12 (Housing), though enforcement focuses on habitability rather than ADU-specific rules. Short-term rental of an ADU is treated as a separate use category under the December 2024 amendments (Council Ordinance approved December 5, 2024, effective December 12, 2024). The amendments require: a conditional use permit from the Board of Adjustment under Section 8 of the Zoning Ordinance; for unhosted STRs in residential zones, a density check (deny if 2% of homes within 1,000 ft are STRs or any unhosted STR within 600 ft); a business license; collection of state and county transient room tax; an annual safety inspection; and non-transferability to new owners. Board of Adjustment has capped STR applications at 10 per meeting due to volume. Existing pre-2024 STR permits remain valid but may not transfer.
Operating an STR without a conditional use permit is a violation of Zoning Ordinance Sections 3-12 and 8 (Conditional Uses), prosecuted through the Division of Planning with civil penalties under LFUCG Code Section 5-29 ($150-$500 per day) and possible referral to Fayette District Court. Violating the owner-occupancy condition or exceeding the two-person occupancy cap can result in revocation of the ADU certificate of occupancy. Code Enforcement uses Airbnb and Vrbo data subpoenas to identify unlicensed operators.
Lexington, KY
Lexington imposes no general restriction on year-round lawn ornaments, statuary, or religious displays on private residential property. The Zoning Ordinance ...
Lexington, KY
Lexington has no ordinance specifically regulating residential inflatable holiday displays. Size, motor noise, and lighting hours are not capped by city code...
Lexington, KY
Lexington has no ordinance limiting the duration, brightness, or hours of residential holiday lighting on private property. The Zoning Ordinance Article 17 (...
Lexington, KY
An outdoor kitchen in Lexington typically requires a building permit when the structure exceeds 200 sq ft, is attached to the house, or includes a roof or pe...
Lexington, KY
Lexington has no code section specifically targeting residential smokers, pellet grills, or wood-fired ovens beyond the general Kentucky Fire Code open-flame...
Lexington, KY
Lexington adopts the Kentucky Fire Code, which is based on NFPA 1 (2018 edition with Kentucky amendments), via LFUCG Code Chapter 9 (Fire Prevention). NFPA 1...
See how Lexington's adu rental restrictions rules stack up against other locations.
Help us keep this page accurate. If you notice an error or outdated information, let us know.