Comparent
RestrictedCity

Short-Term Rental Regulations
in Indianapolis, IN

Last verified: 2026-05-14 · Report an update

Zoning & Conditions

Short-term rentals require an annual permit for each unit and must be located in a legally built dwelling that meets all applicable building code requirements. The program, established by Chapter 852 of the municipal code, went into effect on January 1, 2025.

How to Obtain a Permit

1. Apply online via the Accela Citizen Access portal. 2. Pay a one-time $150 initial permit fee (renewals have no fee). 3. Ensure the unit is a legally built dwelling meeting all building codes and renew the permit annually.

Regulatory Updates — Indianapolis

Proposed and recent legislation

PassedFebruary 2025

STR Permit Audit Program Launched

Indianapolis launched an audit of existing STR permits to verify that permitted properties remain in conforming zones and meet current safety standards, revoking permits that no longer qualify.

PassedAugust 2024

Zoning Code Update Clarifies STR Zone Eligibility

Marion County updated its zoning code to more precisely define which residential and commercial zone designations permit STR use, reducing ambiguity for new permit applicants.

PassedMarch 2024

Neighborhood Impact Report Requirement Added

New STR permit applications in established residential neighborhoods must now include a neighborhood impact report summarizing the applicant's parking, noise, and occupancy management plan.

Official Resources

Official Indianapolis STR regulation source

Local Resources & Advocacy

Vacation Rental Management Association (VRMA)National

National trade association providing advocacy and compliance resources for vacation rental professionals operating in Indianapolis and other Indiana markets.

Indiana Apartment AssociationStatewide

Indiana's largest rental housing trade group, monitoring STR legislation at the state level and advocating for clear, reasonable STR frameworks across Marion County.

Visit IndyLocal

Indianapolis's destination marketing organization that monitors STR accommodation supply and its role in supporting visitor capacity during major events like the Indianapolis 500.

Frequently Asked Questions

Are Airbnbs legal in Indianapolis, IN?
Airbnb listings are allowed in Indianapolis, IN, but with restrictions. Short-term rentals require an annual permit for each unit and must be located in a legally built dwelling that meets all applicable building code requirements. The program, established by Chapter 852 of the municipal code, went into effect on January 1, 2025. 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.
Are short-term rentals allowed in Indianapolis, IN?
Short-term rentals require an annual permit for each unit and must be located in a legally built dwelling that meets all applicable building code requirements. The program, established by Chapter 852 of the municipal code, went into effect on January 1, 2025.
Is a permit required to operate a short-term rental in Indianapolis?
Yes, a permit is required to operate a short-term rental in Indianapolis. 1. Apply online via the Accela Citizen Access portal. 2. Pay a one-time $150 initial permit fee (renewals have no fee). 3. Ensure the unit is a legally built dwelling meeting all building codes and renew the permit annually.
How do I get a short-term rental permit in Indianapolis?
1. Apply online via the Accela Citizen Access portal. 2. Pay a one-time $150 initial permit fee (renewals have no fee). 3. Ensure the unit is a legally built dwelling meeting all building codes and renew the permit annually.
Is Vrbo legal in Indianapolis, IN?
Vrbo is permitted in Indianapolis, 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.
What taxes do short-term rental hosts pay in Indianapolis?
Short-term rental hosts in Indianapolis 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.
What is the latest short-term rental ordinance change in Indianapolis?
The most recent tracked change in Indianapolis is "STR Permit Audit Program Launched" (2025-02-01, status: passed). Indianapolis launched an audit of existing STR permits to verify that permitted properties remain in conforming zones and meet current safety standards, revoking permits that no longer qualify. See the regulatory updates section on this page for the full history.
Do I need a separate permit for each STR unit I operate in Indianapolis?
Yes. Indianapolis requires an annual permit for each individual STR unit, not just per property or operator. If you manage multiple units at the same address, each unit needs its own permit with its own annual renewal.
What does 'legally conforming zone' mean for Indianapolis STRs?
Your property must be in a zone that explicitly permits STR use under Indianapolis-Marion County's zoning code. A recent code update has clarified which zones qualify. If your zone doesn't appear on the eligible list, you cannot obtain an STR permit regardless of other compliance.
How does Indianapolis manage STRs during major events like the Indy 500?
High-demand event periods often bring unlicensed operators into the market temporarily. Indianapolis has increased enforcement during peak event weekends, focusing on platforms advertising units without valid permits. Licensed operators in good standing are not specifically targeted.
Comparent

Looking for property managers in Indianapolis, IN?

Compare top-rated short-term rental managers on Comparent — read reviews, see pricing, and find the right fit.

View Property Managers

Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: 2026-05-14 · Suggest a correction