Is Airbnb legal in Indianapolis, IN?
AllowedThese rules are changing or in active litigation. Verify the current status directly before you rely on it.
Airbnb is allowed in Indianapolis, IN
Each STR unit needs an annual permit and may require a safety inspection, but there is no owner-occupancy rule and no night cap. Indiana state law protects owner-occupied STRs as a permitted use and caps the permit fee, so cities cannot ban them outright.
Verified July 2026. Not legal advice. Rules change and may be enforced differently than written. Confirm with the city before you list.
Key rules at a glance
Permit or registration
Required
Primary residence only
No
Annual night cap
Not confirmed
Registration fee
$150
How short-term rentals work in Indianapolis
Each STR unit needs an annual permit and may require a safety inspection, but there is no owner-occupancy rule and no night cap. Indiana state law protects owner-occupied STRs as a permitted use and caps the permit fee, so cities cannot ban them outright.
Indianapolis broadly permits short-term rentals. Expect to register and collect lodging tax, but there is real room for an investor STR strategy.
At the state level, Indiana limits how far cities can go in banning short-term rentals.
What it means for investors
Indianapolis is relatively open to short-term rentals, so an STR strategy is on the table. Run the numbers on a specific property, and compare it to a straight long-term rental to see which pencils better.
Last reviewed July 2026. Informational and educational only, not legal advice, and no attorney-client relationship is created. Rules change and may be enforced differently than written. Verify the current ordinance with your local jurisdiction or counsel before acting.
Frequently asked questions
Is Airbnb legal in Indianapolis?
Each STR unit needs an annual permit and may require a safety inspection, but there is no owner-occupancy rule and no night cap. Indiana state law protects owner-occupied STRs as a permitted use and caps the permit fee, so cities cannot ban them outright. This reflects the rules as of July 2026; confirm the current ordinance with the city before you list.
Do I need a permit to run a short-term rental in Indianapolis?
Yes. Indianapolis requires a permit or registration to operate a short-term rental, and platforms increasingly require the permit number on the listing.
Can I run a non-owner-occupied Airbnb in Indianapolis?
Yes, Indianapolis does not require you to live in the property, though other limits such as caps, zoning, or licensing may still apply.
Is there a limit on how many nights I can rent in Indianapolis?
No specific annual night cap was confirmed for Indianapolis, though minimum-stay rules or license caps may effectively limit operations. Check the ordinance.
What taxes apply to a short-term rental in Indianapolis?
Short-term rentals in Indianapolis are generally subject to state and local lodging or occupancy taxes on top of income tax. Airbnb and VRBO collect some of these automatically, but not always all of them, so confirm the current rate and who remits it with Indiana and the city.