How Anderson Handles Short-Term Rentals: A Practical Guide
Anderson maintains 62 local ordinances across all categories, and 5 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Anderson falls on the strict-to-permissive spectrum compared to other cities.
Short-Term Rental Permits
Anderson has no separate short-term-rental permit ordinance. Under Indiana Code 36-1-24 an owner-occupied STR is a permitted residential use, and a city may only require a permit that sets forth the requirements of that state chapter, capped at a $150 fee.
Key details: City STR permit: No separate Anderson ordinance. Governing statute: Indiana Code 36-1-24. Permit fee cap: $150 (state limit). Owner-occupied STR: Permitted residential use. Zoning contact: Anderson Zoning & Development.
No STR-specific permit ordinance exists to violate; enforcement runs through Anderson's generally applicable zoning, building-safety and nuisance codes administered by Code Enforcement and Zoning & Development.
Host Presence Rule
Anderson does not require a host to be on-site or to hire a property manager. Indiana Code 36-1-24 lets a city require only the permit terms in that chapter, so remote and self-managed STRs are allowed.
Key details: Host on-site presence: Not required by Anderson. Professional management: Not required. Remote hosts: Allowed. Statute: IC 36-1-24-11. Local contact: Voluntary best practice.
No host-presence or management requirement may be enforced by the city; the property remains subject only to generally applicable safety, nuisance and tax rules.
Primary-Residence-Only Rule
Anderson cannot limit short-term rentals to owners' primary residences. Indiana Code 36-1-24 protects both owner-occupied and non-owner-occupied STRs, so investment properties may be rented short-term.
Key details: Primary-residence-only rule: None in Anderson. Owner-occupied STR: Permitted residential use. Non-owner-occupied STR: May need variance, not banned. Statute: IC 36-1-24-8 and 36-1-24-9. 2026 update: HEA 1210 bars rental caps.
No primary-residence rule exists to enforce; STRs remain subject only to generally applicable zoning, safety, nuisance and tax rules, plus any variance required for non-owner-occupied properties.
Occupancy Limits
Anderson sets no STR-specific occupancy cap. Guest numbers are governed by the building- and safety-code capacity that applies to any dwelling, since Indiana Code 36-1-24 treats an owner-occupied STR as an ordinary residential use.
Key details: STR-only occupancy cap: None in Anderson. Occupancy standard: Building/fire-code capacity. Owner-occupied STR: Permitted residential use. Statute: IC 36-1-24-8. Confirm with: Anderson Building/Code Enforcement.
Overcrowding is addressed under Anderson's generally applicable building, fire and nuisance codes through Code Enforcement; there is no separate STR overcrowding penalty in city ordinance.
Taxes & Fees
Anderson STR stays under 30 days owe Indiana's 7% state sales tax plus the Madison County innkeeper's tax of 5%, roughly 12% total. Any city permit fee is capped by state law at $150.
Key details: Indiana sales tax: 7%. Madison County innkeeper's tax: 5%. Approx. total lodging tax: ~12%. Taxable stay length: Less than 30 days. City permit fee cap: $150 (IC 36-1-24-13).
Unremitted state sales tax and Madison County innkeeper's tax accrue penalties and interest assessed by the Indiana Department of Revenue; sustained non-payment can trigger audit and collection action.
The Bottom Line
Anderson's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Anderson is broadly strict or permissive.
All of the above reflects Anderson's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.