Short-Term Rental Regulations
in Carmel, IN

Airbnb listings are allowed in Carmel, IN, but with restrictions. The City of Carmel regulates short-term residential rentals (less than 30 days) and requires approval to operate under city ordinance (Ordinance Z-629-17); non-dwelling short-term rentals are addressed by Ordinance Z-690-24. For residential rental properties let for 30 days or longer, the City requires registration with a 10% cap per subdivision (condominiums excluded) and a legacy-dwelling exemption for properties registered by Jan 31, 2026. Annual renewal is required and HOAs must provide documentation if applicable. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

The City of Carmel regulates short-term residential rentals (less than 30 days) and requires approval to operate under city ordinance (Ordinance Z-629-17); non-dwelling short-term rentals are addressed by Ordinance Z-690-24. For residential rental properties let for 30 days or longer, the City requires registration with a 10% cap per subdivision (condominiums excluded) and a legacy-dwelling exemption for properties registered by Jan 31, 2026. Annual renewal is required and HOAs must provide documentation if applicable.

Yes, a permit is required to operate a short-term rental in Carmel. 1) For residential rentals 30+ days: submit the online rental registration via the City’s portal, pay the $5 per-property registration fee, and provide required documentation (e.g., HOA letter); renew annually. 2) Legacy dwellings: submit a complete rental permit application by Jan 31, 2026 to be exempt from the 10% cap. 3) For short-term residential rentals (<30 days): approval is required under Ordinance Z-629-17 (specific application steps for this ordinance are not detailed on the main registration page).

1) For residential rentals 30+ days: submit the online rental registration via the City’s portal, pay the $5 per-property registration fee, and provide required documentation (e.g., HOA letter); renew annually. 2) Legacy dwellings: submit a complete rental permit application by Jan 31, 2026 to be exempt from the 10% cap. 3) For short-term residential rentals (<30 days): approval is required under Ordinance Z-629-17 (specific application steps for this ordinance are not detailed on the main registration page).

Vrbo is permitted in Carmel, IN under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in Carmel are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for Carmel. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.