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Lexington, KY Short-Term Rentals: Short-Term Rental Permits (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Short-term rental permit rules in Lexington, KY, also called Airbnb permits, vacation rental licenses, or STR registration, list the application steps, fees, and operating requirements for hosting.

Key Facts

Licensing authority
LFUCG Division of Revenue
Minimum liability insurance
$1,000,000 per occurrence
Emergency contact distance
Within 25 miles of the rental
License expiration
December 31 annually, or on ownership/use change
Penalty for unlicensed operation
$500 per offense

Summary

No one may own a short-term rental in Lexington-Fayette County without a special fees license from the Division of Revenue. Applicants must supply contact and emergency-contact information, a site and floor plan, proof of $1 million liability insurance, planning approval, and safety affidavits before the license is issued.

No person shall own a short-term rental in Lexington-Fayette County unless the person possesses a valid special fee license for the short-term rental issued by the Lexington-Fayette Urban County Government, Division of Revenue, as provided in section 13-13 of the Code and this article. ... All short-term rental special fee licenses and renewals shall expire upon the earlier of (1) December 31st following the most recent application or renewal; (2) a change in licensee or ownership of a dwelling unit used as a short-term rental; (3) a change in use from one form of short-term rental (hosted or un-hosted) to the other; or (4) the revocation of a conditional use permit.

Source: LFUCG Division of Planning — ZoningView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Republication | Zoning Ordinance: Republication).

Full Breakdown

' The application must include the property address; contact information for the applicant, the operator (if different), and an emergency contact located within twenty-five miles of the rental; Division of Planning approval that the rental complies with the Zoning Ordinance; the maximum requested occupant count; a site and floor plan showing legal on-site parking; a certificate of general liability insurance of at least $1,000,000 per occurrence; affidavits confirming the health-and-safety duties of § 13-79(a)(1)-(6) are met and that building, fire and other codes are followed; and, for septic properties, a Health Department letter confirming the septic system can handle short-term-rental use.

Every application must be accompanied by the fee set in § 13-13. A license covers all short-term rentals a licensee owns, and each licensed rental receives a unique local registration number. Licenses expire on the earliest of December 31 following issuance, a change in ownership, a change between hosted and un-hosted use, or revocation of a conditional use permit. The Director may refuse to issue or renew a license for a false statement, an incomplete application, unpaid fees or fines, an unsatisfied lien, loss of a required conditional use permit, or noncompliance with applicable codes.

Violations & Fines

Operating a short-term rental without the required special fees license violates § 13-77(a) and carries a civil penalty of $500 per offense under § 13-81, imposed by a Division of Revenue citation officer, in addition to any penalty under § 13-15 for failing to obtain a special fees license. Each day the violation continues after notice is a separate offense, and the government may place a lien on the property for unpaid civil fines.

Frequently Asked Questions

What does a Lexington STR license application require?
Applicants must give owner, operator and emergency-contact details, a Division of Planning zoning sign-off, a site and floor plan, proof of at least $1,000,000 in general liability insurance, health-and-safety affidavits, and for septic properties a Health Department letter confirming the system can handle the use, per § 13-77.
How long does a Lexington STR license last?
It expires on the earliest of December 31 following the last application or renewal, a change in ownership or licensee, a switch between hosted and un-hosted use, or revocation of a required conditional use permit, per § 13-77.
What happens if I rent out a home in Lexington without a license?
You are subject to a $500 civil penalty per offense under § 13-81, on top of the penalty in § 13-15 for operating without a special fees license, with each additional day after notice counted as a new offense.

Sources & Official References

Other rules in Lexington

All Lexington rules

How Lexington compares: Most Airbnb-Friendly Cities in America·Compare Lexington to another location·View the Kentucky short-term rentals overview

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