Short-Term Rentals in Indianapolis, IN (2026)
4 verified short-term rentals rules for Indianapolis, Indiana, sourced directly from the municipal code and official government pages.
Verified from official government sources
Short-Term Rental Permits
Indianapolis adopted Chapter 852 of the Revised Code (the Short-Term Rental Permit Program, effective 2025) requiring every short-term rental owner to obtain a permit from the Department of Business and Neighborhood Services. State law (IC 36-1-24-13) caps the fee at $150 for the initial permit, and renewals are free unless the permit was previously revoked for cause.
STR Permit Required: $150 One-Time Fee, Annual Renewal
Some RestrictionsInd. Code 36-1-24-13 (Permit fee), as added by P.L.73-2018, SEC.1
A unit may charge a permit fee, not to exceed one hundred fifty dollars ($150), for each of the following: (1) An initial permit issued to an owner for the permitted property. (2) The renewal of a permit, unless the permit was revoked for cause.
Taxes & Fees
Marion County imposes a 10 percent innkeeper's tax on lodging under Sec. 121-204, a countywide levy adopted by the city-county council rather than a Consolidated City-only rule.
Indianapolis-Marion County 10% Innkeeper's Tax
Some RestrictionsRevised Code of the Consolidated City and County (Indianapolis - Marion County), Sec. 121-204(a)-(b)
(a)The county innkeeper's tax imposed by section 2 of IC 6-9-8 (as amended by H.E.A. 1001 of the 2009 Special Session of the Indiana General Assembly) is hereby increased from nine (9) percent to ten (10) percent.(b)The increase in the tax rate authorized by this section continues in effect unless the increase is rescinded. (G.O. 83, 1997, § 1; G.O. 58, 2005, § 1; G.O. 83, 2009, § 2) Cross ...
Short-Term Rental Parking Rules
Indianapolis short-term rentals can't just park on the lawn: Section 852-105(3) requires STR parking to comply with the same off-street parking standards zoning applies to commercial areas, citing Zoning Ordinance Chapter 744, Articles IV, V, and VII, plus Chapter 931. The unit itself also has to be a real dwelling, not a parked vehicle.
Indianapolis STR Parking Must Meet Zoning Code
Some RestrictionsRevised Code of the Consolidated City and County (Indianapolis - Marion County), Sec. 852-105(1)-(4) (Short-term rental standards)
(1)Permitted structure types. Short-term rental units shall be in legally built dwelling units that meet all applicable building code requirements. A short-term rental may be within a primary building as defined in section 740-202 or within an accessory building that conforms with section 743-306(GG): Secondary dwelling unit.(2)Prohibited structure types. A recreational vehicle, mobile home dwe...
Occupancy Limits
Indiana law (IC 36-1-24-8) makes owner-occupied short-term rentals a permitted residential use that cannot be zoned out, while Indianapolis's Chapter 852 permit application requires owners to state each unit's advertised maximum occupancy; the city ties occupancy to the dwelling's bedroom count and building-code capacity rather than a flat citywide cap.
Owner-Occupied STRs Are a Permitted Residential Use
Some RestrictionsInd. Code 36-1-24-8 (Owner occupied short term rental property is a permitted residential use), as added by P.L.73-2018, SEC.1
A short term rental of owner occupied short term rental property is a permitted residential use under any applicable zoning ordinance of a unit and may not be disallowed by any zoning ordinance (as defined in IC 36-7-1-22) in a zoning district or classification of a unit that permits residential use.