IndianapolisShort-term rental rules

Largest 50 cities / Indiana

Indianapolis requires a flat $150 short-term rental permit for owner-occupied or investor units alike, under a 2018 state law that bars outright bans; the permit cannot pass to a buyer.

Research reviewed Oct 18, 2026. Original city review.

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Does the operating permit transfer?: New application
State law bars transferring the permit even on a partial sale; the new owner must submit a fresh application, and a confirmed conflict over per-unit permitting on multi-unit properties remains unresolved.
Can the land-use approval continue?: Verify the property approval
The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
Can this buyer obtain approval?: Non-owner-occupied STRs pay the same $150 permit citywide with no extra zoning hurdle, since Indianapolis never adopted the state's optional variance requirement for investors.
License or registration: The Department of Business and Neighborhood Services issues a $150 annual permit; state law caps the fee and bars a renewal charge.
Application availability: Confirm current availability
Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
Timing to verify: No sale-specific deadline was established in this summary. Ask the issuing office about filing, renewal and any interruption in operation.
Changes and uncertainty: A broader state rental-ban statute requires legacy ordinances to comply by Jan. 1, 2028; Cumberland exits the consolidated city Jan. 1, 2027.

What this means for the appraisal

Obtain the buyer application requirements and confirm the earliest approved operating date before assuming continuity of rental income.
Verify the property’s land-use approval and continuation conditions. Research finding: Verify the property approval.
Check the proposed buyer against the recorded requirements: Non-owner-occupied STRs pay the same $150 permit citywide with no extra zoning hurdle, since Indianapolis never adopted the state's optional variance requirement for investors.
In the assignment analysis, identify the evidence supporting the proposed rental use, any operating interruption and any unresolved assumptions.

Use these prompts to plan the property review. The appraiser must evaluate the evidence and reach the assignment-specific conclusions.

Record the property evidence in a worksheet

Request documents from the owner or agent

Copy this market-specific request, add the property address and edit it for the assignment.

Read or select the document request

Document request for Indianapolis

Subject: STR property document request | Indianapolis, IN

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: State law bars transferring the permit even on a partial sale; the new owner must submit a fresh application, and a confirmed conflict over per-unit permitting on multi-unit properties remains unresolved.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Non-owner-occupied STRs pay the same $150 permit citywide with no extra zoning hurdle, since Indianapolis never adopted the state's optional variance requirement for investors.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.

Market research reviewed: 2026-10-18. These requests need property-specific verification.
Official research sources:
Indiana Code 36-1-24 (Short Term Rentals), full text: https://iga.in.gov/ic/2026/Title_36.html
Indianapolis-Marion County Code Chapter 852 (Indianapolis Short-Term Rental Permit Program): https://library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances?nodeId=TITIVBUCORELI_CH852INSHRMREPEPR

Subject: STR property document request | Indianapolis, IN

Please provide the following documents for the property under review. Identify any item that is unavailable or does not apply.

1. Property address, parcel ID and confirmation of the governing jurisdiction.
2. Current operating permit or registration, named holder, expiration date and renewal history, if applicable.
3. Written ownership-change instructions from the issuing office. Guide finding: State law bars transferring the permit even on a partial sale; the new owner must submit a fresh application, and a confirmed conflict over per-unit permitting on multi-unit properties remains unresolved.
4. Zoning approval, conditional-use permit, variance or grandfathering record, including conditions and evidence of continued use. Guide finding: The operating-permit rule does not establish whether this parcel’s zoning approval, variance or older-use protection continues. Obtain the actual approval and its conditions.
5. Documents addressing the proposed buyer and property requirements: Non-owner-occupied STRs pay the same $150 permit citywide with no extra zoning hurdle, since Indianapolis never adopted the state's optional variance requirement for investors.
6. Current confirmation of application availability, including any cap, waitlist, lottery or separation rule. Guide finding: Application availability was not separately reverified for this explorer. Check the city’s current program, cap, lottery or waitlist before relying on the seller’s rental history.
7. Recorded covenants, HOA or condominium rental restrictions and applicable lease restrictions.
8. Rental operating statements and booking records, with the periods covered and any anticipated interruption at closing.

Market research reviewed: 2026-10-18. These requests need property-specific verification.
Official research sources:
Indiana Code 36-1-24 (Short Term Rentals), full text: https://iga.in.gov/ic/2026/Title_36.html
Indianapolis-Marion County Code Chapter 852 (Indianapolis Short-Term Rental Permit Program): https://library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances?nodeId=TITIVBUCORELI_CH852INSHRMREPEPR

Research and guide updates

Oct 18, 2026 Research record: Research recorded for this market. Original city review. See the findings, open questions and official sources below.
Nov 1, 2026 Guide tools: Added assignment prompts, a document request and consistent research questions. This tool update does not change the market research date.

Changes and uncertainty to verify

A broader state rental-ban statute requires legacy ordinances to comply by Jan. 1, 2028; Cumberland exits the consolidated city Jan. 1, 2027.

Sources and research limits

Carried forward from the October 18, 2026 city research. The explorer separates the operating permit from land-use rights; this is not a new verification of all current city rules.

Use this summary to identify the documents and questions for a property review. A seller's rental history alone does not establish a buyer's permission to operate.

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