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Short-Term Rental Regulations
in Madison, IN

Last verified: March 2026 · Report an update

Zoning & Conditions

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.

How to Obtain a Permit

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.

Official Resources

Official Madison STR regulation source

Frequently Asked Questions

Are short-term rentals allowed in Madison, IN?
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.
Is a permit required to operate a short-term rental in Madison?
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.
How do I get a short-term rental permit 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.

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: March 2026 · Suggest a correction