Is Airbnb legal in Indianapolis, IN?

Allowed

Before buying or changing your hosting model, compare local eligibility, booking taxes and renewal responsibilities in the Indiana detailed host guide and worksheet. The city summary below retains its own review date.

These 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.

Indianapolis Revised Code Ch. 852View the ordinance

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

The first step in Indianapolis is the city's permit or registration process, with a fee of about $150. The status card above has the full detail on the current rules.

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.

Analyze a rental hereCheck long-term rent

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.