Primary-Residence-Only Rule
Indianapolis cannot restrict short-term rentals to primary residences because Indiana state law preempts that requirement. Investor-owned STRs operate under the same registration as resident-owned rentals.
Short-Term Rentals in Indianapolis, IN (2026)
10 verified short-term rentals rules for Indianapolis, Indiana, sourced directly from the municipal code and official government pages.
Verified from official government sources
Permit Requirements
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 (2) The renewal of a permit, unless the permit was revoked for cause.
Noise Rules
Short-term rental hosts in Indianapolis must comply with the city noise ordinance even though Indiana law preempts most local STR regulation. Quiet hours apply to STR guests just like other residents.
Indianapolis Short-Term Rental Noise Standards
Some RestrictionsTaxes & Fees
Indianapolis STRs subject to a total tax rate of 17%: 7% Indiana state sales tax + 10% Marion County innkeeper's tax. Operators must register with Indiana Dept. of Revenue for a Retail Merchant Certificate. Platforms like Airbnb collect taxes automatically; Vrbo hosts self-remit.
Indianapolis STR Taxes & Fees
Some RestrictionsParking Rules
Short-term rental guests in Indianapolis must follow standard residential parking rules. The city cannot impose STR-only parking caps, but generally applicable street parking, permit, and driveway rules still apply to guest vehicles.
Parking Rules for Indianapolis STR Guests
Some RestrictionsOccupancy 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.
Insurance Requirements
Indianapolis does not mandate specific liability insurance for short-term rentals, since Indiana law limits how much cities can require. Hosts are still strongly advised to carry commercial-grade STR coverage.
Short-Term Rental Insurance Indianapolis
Few RestrictionsNight Caps
Indianapolis does not cap the number of rental nights per year, but Chapter 852 imposes a two-night minimum stay requirement on all permitted short-term rentals.
Indianapolis Short-Term Rental Minimum Stay
Some RestrictionsRegistration Rules
Revised Code Chapter 852 requires every short-term rental in Indianapolis to obtain a Short-Term Rental Permit from the Department of Business and Neighborhood Services before being listed on any platform.
Indianapolis Short-Term Rental Registration (Ch. 852)
Some RestrictionsHost Presence Rule
Indianapolis cannot require hosts to live on site at a short-term rental because Indiana law expressly preempts owner-occupancy mandates. Both hosted and unhosted rentals are allowed citywide subject to registration.
Owner-Occupancy Rules for Indianapolis STRs
Few RestrictionsLooking for Marion County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Indianapolis city rules.
Short-Term Rentals in Marion County →