Under IC 36-1-24, Indiana cities may set reasonable occupancy limits for short-term rentals based on bedrooms and square footage. State law authorizes local caps but prohibits outright bans, ensuring uniform statewide framework with local flexibility on guest counts.
Indiana Code 36-1-24-9 authorizes local governments to establish maximum occupancy standards for short-term rentals as part of permitting. Common formulas include two adults per bedroom plus two additional guests, often consistent with International Property Maintenance Code standards. State law requires that occupancy rules be reasonable and not designed to effectively prohibit STR use. Health Department septic capacity rules under 410 IAC 6-8.3 may further limit guests on properties using on-site sewage systems. Local enforcement typically occurs through permit suspension or fines.
Exceeding posted occupancy can trigger local fines, permit suspension, or revocation under municipal ordinance authority granted by IC 36-1-24.
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See how Mishawaka's occupancy limits rules stack up against other locations.
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