Short-Term Rental Regulations
in Madison County, IN

Airbnb listings are allowed in Madison County, IN, but with restrictions. Short-term rentals are permitted where local municipal zoning allows, often categorized as owner-occupied bed & breakfasts or tourist homes. Requirements typically include owner-occupancy for certain types, limits on guest rooms, off-street parking mandates, and compliance with local health and safety codes per municipal Unified Development Ordinances. 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.

Short-term rentals are permitted where local municipal zoning allows, often categorized as owner-occupied bed & breakfasts or tourist homes. Requirements typically include owner-occupancy for certain types, limits on guest rooms, off-street parking mandates, and compliance with local health and safety codes per municipal Unified Development Ordinances.

Yes, a permit is required to operate a short-term rental in Madison County. 1) Verify property zoning and municipal code compliance with the local Planning Department. 2) Complete the municipality's specific application process: Pendleton requires annual online registration via their town portal; Anderson requires an Improvement Location Permit (ILP) and Certificate of Occupancy. 3) Pay applicable fees and ensure the property meets all local safety and parking standards.

1) Verify property zoning and municipal code compliance with the local Planning Department. 2) Complete the municipality's specific application process: Pendleton requires annual online registration via their town portal; Anderson requires an Improvement Location Permit (ILP) and Certificate of Occupancy. 3) Pay applicable fees and ensure the property meets all local safety and parking standards.

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