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.
Indiana Code 36-1-24 was enacted in 2018 specifically to block cities from limiting short-term rentals to a host's primary residence. Indianapolis previously considered a primary-residence rule, but state preemption foreclosed that approach. As a result, investor-owned single-family STRs and dedicated whole-home rentals are allowed in residential zones citywide as a permitted use. Hosts must register annually, collect lodging tax through their platform or directly, and follow generally applicable noise and building rules. Some condominium and HOA documents privately limit STRs and remain enforceable as contractual restrictions.
There is no city sanction for not living at the property. Penalties only attach to operating without registration, tax delinquency, or repeated nuisance complaints documented through code enforcement.
Indianapolis, IN
Indianapolis requires a Short-Term Rental Permit for all STR properties effective January 2025. Initial permit fee is $150 per property, renewed annually at ...
Indianapolis, IN
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 De...
See how Indianapolis's primary-residence-only rule rules stack up against other locations.
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