Airbnb & Short-Term Rental Rules in Indianapolis, IN (2026)

Indianapolis, IN allows short-term rentals — commonly listed on platforms like Airbnb and VRBO — subject to local regulations that have evolved significantly since 2015. Hosts must register with the city (Indianapolis Short-Term Rental Registration) before listing their property. Indianapolis regulates STRs to balance tourism revenue with neighborhood quality of life. Key rules cover primary residence requirements, nightly limits, occupancy caps, and tax collection obligations. Hosts who operate without required registration or in violation of city rules face substantial fines. Below are the current registration requirements, rules, platform-specific notes, and penalties for Indianapolis.

Registration Requirements

Registration Required: Indianapolis Short-Term Rental Registration. Registration fee: $125. Annual renewal: $125 annually. Register through the Indianapolis Department of Metropolitan Development (DMD) — Building Permits or Indianapolis Department of Metropolitan Development (DMD). Your registration number must be displayed on all platform listings. Failure to register before hosting is a violation subject to fines.

Operational Rules

Short-Term Rental Rules in Indianapolis: 1. Short-Term Rental registration required with Indianapolis Department of Metropolitan Development 2. No primary-residence requirement in Indianapolis — investment property STRs allowed 3. Designated local contact available 24/7 for complaints required 4. Maximum occupancy: 2 guests per bedroom 5. Indiana Hotel/Motel Tax (7%) plus Marion County Innkeeper's Tax applies 6. STR platforms collect and remit applicable state and county taxes 7. Registration number must appear on all online platform listings 8. Properties must maintain liability insurance of minimum $500,000

• •Short-Term Rental registration required with Indianapolis Department of Metropolitan Development
• •No primary-residence requirement in Indianapolis — investment property STRs allowed
• •Designated local contact available 24/7 for complaints required
• •Maximum occupancy: 2 guests per bedroom
• •Indiana Hotel/Motel Tax (7%) plus Marion County Innkeeper's Tax applies
• •STR platforms collect and remit applicable state and county taxes
• •Registration number must appear on all online platform listings
• •Properties must maintain liability insurance of minimum $500,000

Platform-Specific Rules

Platform-Specific Rules in Indianapolis: Airbnb: Airbnb collects Indiana sales tax (7%) and Marion County Innkeeper's Tax on qualifying rentals. Indianapolis hosts must provide registration number. VRBO: VRBO collects applicable Indiana and Marion County taxes. Registration requirement applies. Always verify current platform tax collection and remittance policies directly with your platform — these can change without advance notice to hosts.

Penalties for Violations

Penalties for STR Violations in Indianapolis: $500 fine for operating without registration; $1,000 per day for repeated violations; Code enforcement citation and cease-and-desist; Registration revocation for non-compliance. Indianapolis has enforcement mechanisms to identify unlicensed short-term rental listings on platforms. Hosts should ensure all registrations are current and listings display valid registration numbers.

• ⚠$500 fine for operating without registration
• ⚠$1,000 per day for repeated violations
• ⚠Code enforcement citation and cease-and-desist
• ⚠Registration revocation for non-compliance

Frequently Asked Questions