13 verified short-term rentals rules for Lexington, Kentucky, sourced directly from the municipal code and official government pages.
Verified from official government sources
Lexington requires short-term rental operators to register and obtain a permit under Ordinance 14-2020 and Chapter 14A, with annual renewal and transient tax collection.
Short-term rentals in Lexington must comply with Chapter 14 noise limits, and operators are responsible for guest conduct under Chapter 14A registration terms.
Lexington collects state transient room tax (1% KRS §142.400) plus county (up to 3%) and city transient room taxes on stays under 30 days.
Lexington STR regulations require adequate off-street parking for guests and prohibit chronic on-street overflow that blocks neighbors or disrupts residential streets.
Lexington caps STR occupancy based on bedroom count, building code standards, and zoning limits, with a ceiling designed to prevent party-house use in residential neighborhoods.
Lexington STR operators must carry adequate liability insurance, typically at least 1 million dollars per occurrence, and demonstrate coverage during annual registration.
Lexington limits non-owner-occupied short-term rentals to a capped number of rental nights per year in certain zones, protecting residential neighborhood character.
Lexington-Fayette Urban County Government (LFUCG) requires short-term rental operators to register their property, obtain a conditional use permit or zoning approval depending on location, and collect the 8.5 percent transient room tax. STRs are regulated under the Lexington Zoning Ordinance and administered through the Division of Planning and the Division of Revenue.
LFUCG Code Chapter 17.4 governs short-term rentals across Lexington-Fayette but does not impose a host-presence requirement; both hosted and unhosted whole-home rentals are allowed if registered.
Lexington-Fayette does not restrict short-term rentals to a host's primary residence; investors may register multiple properties under Chapter 17.4 as long as each unit independently meets registration and zoning standards.
LFUCG Code Enforcement uses a graduated strike approach against short-term rentals that generate repeated nuisance complaints, escalating from warnings to fines and ultimately registration revocation under Chapter 17.4.
Under Lexington-Fayette Chapter 17.4, the registered host bears full responsibility for code violations that occur on a listing, while platforms like Airbnb and Vrbo collect the 8.5% transient-room tax through voluntary agreements with LFUCG.