Floyd County - New Albany
Southern Indiana Airbnb and short term rental laws.
Renting the home you live in: Permit required (new permits paused)
Renting a home you don’t live in: Permit required (new permits paused)
New Albany requires a short term rental permit, but the city has paused new permits since 2024. Rentals need a local contact who can get there in 3 hours and must follow quiet hours.
PERMIT
Short Term Rental Permit. New permits are paused.
How to apply
Apply to the Planning and Zoning office on city forms. File one application per property. List the owner, the property manager, how the unit is marketed, the advertised occupancy, and the type of home. The city has paused new permits since February 2024.
FeeSet by the city council fee schedule.
Renewal
The permit lasts one year.
Where rentals are allowed
Short term rentals are a permitted use in the LDR, MDR, TR, MC, D, MU, IST and OS districts. They are not a listed use in HC, IND or CEM. The permit pause covers the city and the unincorporated land within two miles of it.
Guest limits
Post the maximum occupancy the fire code allows. The city sets no separate number.
Caps
The code sets no cap on the number of rentals. The city has paused new short term rental permits since February 2024. The council extended the pause in 2025 and again on May 21, 2026, for up to one year. A state law that took effect July 1, 2026 bars local rental caps.
Safety and inspectionsNo short term rental inspection is required. The city rental inspection program does not cover short term rentals.
Parking, trash, and noise
Park on paved surfaces only. Post the contact name and phone number, the fire code maximum occupancy, parking directions, a copy of the rules, and a notice that guests can be fined. Keep garbage in closed containers with weekly pickup. No outdoor noise heard at the property line from 10 pm to 7 am on weeknights or from 11 pm to 7 am on weekends.
Local contact
Required. The contact person must answer calls any time the unit is rented, hold a key, and be able to get to the unit within 3 hours.
Penalties
Each rental without a permit is a separate violation. A zoning fine can be up to $2,500 per violation and up to $7,500 for a second or later one. Illegal land use can be fined up to $2,500. Each day counts as a new violation. The owner, the renter and the property manager can all be held responsible. Three citations in one calendar year can cost the owner the permit for up to a year.
Coming changes
A new zoning code goes to the city council around Thanksgiving 2026. City staff said it will try to limit the number of short term rentals. The council can end the permit pause once the code passes, around January 1, 2027.
Last changed
May 21, 2026
Apply
Official rules
More information
- Zoning Ordinance Art. 7.10: Permit, application, renewal
- Zoning Ordinance Art. 6.19: Rental standards and quiet hours
- Zoning Ordinance Ch. 5 Use Table: Allowed zoning districts
- Zoning Ordinance Ch. 10.4: Fine amounts
- Zoning Ordinance Ch. 10.5: Who is held responsible
- Ordinance G-24-02: Original permit pause
- Ordinance G-26-06: 2026 pause extension
- HEA 1210: State ban on caps