Indiana Permit Requirements Law: Statewide Short-Term Rentals Rules (2026)

Key Facts

Statute: IC 36-1-24
Effective: July 1, 2018
Local bans: Prohibited statewide
Permit term: Minimum one year
HOA exemption: Covenants still apply

Full Breakdown

Enacted by HEA 1035 (2018), IC 36-1-24 prevents Indiana municipalities from prohibiting short-term rentals (rentals under 30 days) of residential property. Local governments retain authority to require permits with reasonable fees, set occupancy caps, mandate liability insurance, enforce noise standards, and require local contact persons. Permit denials, suspensions, or revocations must follow due process. Permits remain valid for at least one year. The law does not apply to homeowners associations, which may still restrict STRs through covenants. Tax collection and zoning compliance remain local responsibilities.

Violations & Penalties

Local ordinances violating IC 36-1-24 are unenforceable. Owners harmed by unlawful prohibition may seek declaratory or injunctive relief in court.

Frequently Asked Questions

Can an Indiana city ban Airbnb-style rentals entirely?

No. State law preempts outright bans of short-term rentals in residential zones. Cities may require permits and impose reasonable operational standards but cannot prohibit them.

Do HOAs have to allow short-term rentals?

No. IC 36-1-24 only restricts local government action. Private homeowners associations may still enforce covenants restricting or prohibiting short-term rentals.

Indiana Short-Term Rental State Preemption Law

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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