Indiana Short-Term Rental Occupancy Standards

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.