Short-Term Rentals in Louisville, KY

If you live in Louisville or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Louisville has 7 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Host Platform Liability

Louisville Metro can order Hosting Platforms to pull short-term rental listings with invalid or revoked registration numbers within ten business days, and can subpoena platform records for enforcement.

Key details: Listing removal deadline: 10 business days after Director notice. First offense: warning notice only. Repeat offense penalty: $125 civil fine per day. Platform records: subpoenable by Code Enforcement Board. Enforcing agency: Develop Louisville / Code Enforcement Board.

First violation of § 115.521 draws a warning notice only. A second or later violation carries a $125 civil penalty per additional day, imposed by an Enforcement Officer and appealable to the Code Enforcement Board.

Occupancy Limits

Louisville Metro caps short-term rental occupancy at twice the bedroom count plus two guests, with a hard ceiling of 12 people over 16.

Key details: Base formula: 2x bedrooms + 2 guests. Large-lot formula: 2x bedrooms + 6 (over 2 acres). Hard cap: 12 persons over age 16. Applies to: non-primary-residence rentals, some condos.

Enforced by the Louisville Metro Board of Zoning Adjustment through the conditional use permit for the short term rental; the Planning Director can revoke the registration after two substantiated civil or criminal complaints within 12 months, triggering a public hearing on revoking the permit.

Short-Term Rental Permits

Louisville Metro requires every short-term rental in Jefferson County to register annually with Develop Louisville before operating, backed by a $250 fee and civil penalties starting at $125.

Key details: Registration required: Annual, before operating any STR. Fee: $250 nonrefundable per year. Enforcing agency: Develop Louisville (Planning & Design). First-offense penalty: $125 civil fine. Revoked host ban: 1 year ineligible to re-register.

First violation of the registration rules draws a $125 civil penalty, rising to $250, $500, then $1,000 for repeat offenses; each violation day after notice counts separately (§ 115.999(N)(1)).

This is one of the stricter rules in Louisville's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Primary-Residence-Only Rule

In Louisville Metro's residential zoning districts, a short-term rental must be the owner's primary residence unless a conditional use permit says otherwise.

Key details: Residency required: primary residence in residential zones. Minimum tenure before applying: 6 months. Approval path: Planning Director, administrative. Non-primary-residence route: conditional use permit required. Max guest stay: 29 consecutive days.

Renting a non-primary-residence unit in a residential zone without a conditional use permit is a zoning violation; two or more substantiated civil or criminal complaints in 12 months triggers registration revocation by the Planning Director, appealable to the Board of Zoning Adjustment within 30 days.

Short-Term Rental Parking Rules

Louisville Metro requires short-term rentals approved by conditional use permit to provide sufficient host and guest parking, but the Board of Zoning Adjustment sets the actual amount case by case rather than a fixed number.

Key details: Standard: Sufficient parking for host and guests. Who decides amount: Board of Zoning Adjustment, case-by-case. Basis for decision: Land uses and density nearby. Applies to: STRs needing a conditional use permit. Does not apply: Home rule cities in Jefferson County.

Parking is a binding condition of the conditional use permit approving the short-term rental. Failing to provide the parking the Board of Zoning Adjustment required is a permit violation that can trigger code enforcement action and puts the conditional use permit at risk of revocation.

Taxes & Fees

Louisville Metro short-term rental hosts must register with the Revenue Commission and pay the 8.5% transient room tax plus the local occupational license tax on rental income.

Key details: Transient room tax: 8.5% of rent charged. Room tax authority: LMCO Chapter 121. Occupational license tax: LMCO Chapter 110. Must register with: Louisville Metro Revenue Commission. Annual registration fee: $250, separate from taxes.

Louisville Metro can revoke a short-term rental's registration and bar the Host from reapplying for one year; the Director may also pursue civil, injunctive, or other court enforcement under § 115.522.

This is one of the stricter rules in Louisville's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Repeat Violator Strikes

Louisville Metro revokes a short-term rental registration after two substantiated violations or complaints on the same property within 12 months.

Key details: Strike threshold: 2 substantiated violations/12 months. Enforcing agency: Planning Director, Develop Louisville. Appeal window: 30 days to Board of Zoning Adjustment. Post-revocation ban: 1 calendar year ineligible.

Two substantiated complaints or two violations on one property within 12 months triggers mandatory revocation by the Planning Director; a prior-year citation also blocks a new registration outright.

Compared to other cities, Louisville takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

The Bottom Line

Louisville is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Louisville, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Louisville's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.