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.
Indiana's STR statute distinguishes owner-occupied from non-owner-occupied rentals. IC 36-1-24-8 provides that '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... in a zoning district or classification of a unit that permits residential use.' Indianapolis therefore cannot prohibit owner-occupied STRs in residential zones; instead it regulates them under the Short-Term Rental Permit Program (Revised Code Ch. 852). As part of the permit application the owner must declare the property's advertised occupancy, and the dwelling must satisfy applicable building, fire, and life-safety codes for the number of occupants advertised. The practical occupancy ceiling is set by the structure's sleeping-room count and the Indiana building code's habitable-space and egress requirements rather than by a single citywide guest number. For short-term rentals that are NOT owner-occupied, IC 36-1-24-9 permits a unit to require a special exception, special use, or zoning variance, but the unit 'may not interpret and enforce' its zoning 'in a manner that prohibits or unreasonably restricts' short-term rentals.
Advertising or hosting more occupants than the permitted/inspected capacity, or operating a non-owner-occupied STR without the required special exception or variance, is enforced through citations and possible permit revocation after three citations in a calendar year (IC 36-1-24-14).
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
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