Indiana Statewide Rule

Indiana Short-Term Rental State Preemption Law

Few RestrictionsApplies statewide across Indiana (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

Last verified: September 5, 2026Source: State of Indiana

Summary

Indiana Code 36-1-24 prohibits local units from banning short-term rentals statewide. Cities and counties may impose reasonable regulations on permits, occupancy, noise, and safety, but cannot outright prohibit STRs in residential zones where dwellings are otherwise allowed.

Sec. 11. (a) A unit may require an owner to obtain a permit for each property by adopting an ordinance that sets forth only the requirements of this chapter for obtaining a permit. A unit may require only one (1) permit for each single family home, two-family or multifamily dwelling, condominium, cooperative, or time share that an owner rents in whole or in part under this chapter. A permit covers all: (1) dwelling units; and (2) detached accessory structures; located on the permitted property that the owner offers to the public as a short term rental. (b) An owner must submit a permit application for each property for which a permit is sought. The permit application may require the owner to provide only the following information for each property:

Source: State of IndianaView official code

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.

Sources

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