Indiana Short-Term Rental Rules, City by City (Verified 2026)
Program and regulatory figures verified September 10, 2026. Details change; confirm your scenario with us.
Indiana is unusual for the Midwest: it has a statewide short-term-rental law that protects owner-occupied rentals from an outright ban. But the non-owner path still runs through local zoning, so this is the city-by-city status table we check before writing a single loan.
Indiana has a statewide STR statute (IC 36-1-24)
Unlike Ohio or Michigan, Indiana settled the short-term-rental question at the state level. IC 36-1-24, enacted in 2018, makes an owner-occupied short-term rental a permitted residential use and bars a locality from banning it outright (§8). For a non-owner-occupied STR, a local government may require a special exception, but §9 provides that zoning cannot 'prohibit or unreasonably restrict' it. The practical read for an investor: an owner-occupied STR is broadly safe statewide, while a pure investor STR is legal but subject to the local special-exception or permit process, which varies by city. That is why the table below matters more than any national summary.
The 2026 status table
| City | Status (as of September 2026) | Cost | Key rules |
|---|---|---|---|
| Indianapolis | Register with permit; non-owner needs BZA | $150 one-time permit | One-time $150 permit per property; owner-occupied broadly permitted; non-owner-occupied requires Board of Zoning Appeals approval |
| Statewide floor (IC 36-1-24) | Owner-occupied protected; non-owner may need special exception | varies by locality | Locality cannot ban owner-occupied STRs (§8); cannot unreasonably restrict non-owner STRs (§9) |
| Fort Wayne / Evansville / others | Governed by local zoning under the statute | varies | Lighter, less-tested local rules; confirm the current city and county requirements before you buy |
Statuses verified September 2026 against state statute and city sources. The Indianapolis $150 permit and BZA process should be confirmed at Municode before purchase; local rules outside Indianapolis change periodically.
Indianapolis: the permit and the BZA gate
Indianapolis is the one Indiana market with a clearly defined citywide process. Every short-term rental must register for a one-time $150 permit per property. If the home is your primary residence, the STR is broadly permitted. If it is not, you need approval from the Board of Zoning Appeals, and that hearing is a genuine gate: neighbors can object, and approval is not guaranteed. So an investor planning a pure non-owner Indianapolis STR has to treat the BZA outcome as a real risk, not a rubber stamp. We verify the current fee and BZA process before underwriting any Indianapolis STR income, and where the outcome is uncertain we structure the loan on long-term rent. The metro detail is in the Indianapolis guide.
Permit before loan, always
The order matters. We verify a property's short-term-rental path (owner-occupancy status, the local special-exception or permit route, the Indianapolis BZA outcome) before we underwrite any STR income. Where a regime is uncertain or a BZA approval is pending, we structure the loan to qualify on long-term rent so the deal survives a regulatory surprise. That conservatism costs nothing when things go smoothly and saves the property when a city tightens the rules mid-stream. Financing is in Indiana STR loans.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Does Indiana have a statewide short-term rental law?
Yes. IC 36-1-24, enacted in 2018, makes an owner-occupied short-term rental a permitted residential use and bars a locality from banning it outright. A non-owner-occupied STR may require a local special exception, but zoning cannot 'prohibit or unreasonably restrict' it. This is a stronger statewide protection than Ohio or Michigan, which leave STRs entirely to city ordinances.
What are the short-term rental rules in Indianapolis?
Indianapolis requires every short-term rental to register for a one-time $150 permit per property. An owner-occupied STR is broadly permitted, but a non-owner-occupied STR needs Board of Zoning Appeals approval, which is a real hearing where neighbors can object. Confirm the current fee and BZA process with the city before you buy for STR use.
Can a city in Indiana ban my short-term rental?
Not if it is owner-occupied. Under IC 36-1-24 §8 a locality cannot ban an owner-occupied STR. For a non-owner STR, the city can require a special exception, and §9 says it cannot 'prohibit or unreasonably restrict' it, but in practice that means running the local zoning or BZA process. The protection is real for owner-occupants and conditional for investors.
Do I need a permit for a short-term rental outside Indianapolis?
Often the local rule is lighter, but verify it. Outside Indianapolis, cities like Fort Wayne and Evansville regulate STRs through local zoning under the statewide statute, and the rules are less tested. A missing or vague ordinance is a reason for extra diligence, not a green light, so we confirm the current city and county requirements before underwriting STR income.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City short-term-rental rules and tax figures change; confirm current requirements with the city, your CPA, or an Indiana real estate attorney before you buy. Loans are subject to buyer and property qualification.