Short-Term Rental Regulations
in Madison, IN

Airbnb listings are allowed in Madison, IN, but with restrictions. Non-owner-occupied STRs are regulated, while owner-occupied primary residences are exempt. Requirements include an occupancy limit of two people per bedroom, compliance with local nuisance/noise/maintenance ordinances, and potential liability for state sales or innkeeper's taxes. 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.

Non-owner-occupied STRs are regulated, while owner-occupied primary residences are exempt. Requirements include an occupancy limit of two people per bedroom, compliance with local nuisance/noise/maintenance ordinances, and potential liability for state sales or innkeeper's taxes.

Yes, a permit is required to operate a short-term rental in Madison. 1. File an annual permit application with the Administrator for each parcel, including a description of marketing/advertising, occupancy limits, and unit type. 2. Pay the initial permit fee (no fees for renewals unless revoked). 3. The permit is issued within 30 days of a complete application; a site plan is required if a building permit is needed or prior to occupancy.

1. File an annual permit application with the Administrator for each parcel, including a description of marketing/advertising, occupancy limits, and unit type. 2. Pay the initial permit fee (no fees for renewals unless revoked). 3. The permit is issued within 30 days of a complete application; a site plan is required if a building permit is needed or prior to occupancy.

Vrbo is permitted in Madison, 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 Madison 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 Madison. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.