Hamilton County – Carmel

Owner occupied: apply to the Department of Community Services for a permit. Not owner occupied: apply for a Special Exception. The Board of Zoning Appeals hears it, and neighbors get public notice. A Hearing Officer handles renewals. The application asks for the items state law allows.

 

Owner occupied permit: $150 the first time. Special Exception: $250 filing fee.

 

The permit and the Special Exception each last one year. Renewal is free for both. Special Exceptions granted before the May 2026 rules became permits with free renewals.

 

Owner occupied short term rentals are allowed by right, and homes the owner does not live in need a Special Exception, in S1, S2, R1, R2, R3, R4, R5, UR, B1, B2, B3, B5, B6, B7, C1, C2, and MC districts. The board must approve a Special Exception within 30 days of the first hearing if the owner meets the review items: safety, street access, parking, trash, past violations, and covenants.

 

No cap on short term rentals. The city’s 10% subdivision rental cap applies only to rentals of 30 days or longer.

 

For a Special Exception, the board reviews fire and building safety, sanitation, and traffic. No set detector, extinguisher, or inspection rule applies.

 

For a Special Exception, the board reviews parking, trash storage, and past citations for noise, upkeep, and nuisance. Listing a home on any platform without a permit or Special Exception is not allowed.

 

Carmel rewrote it’s rules in May 2026 to match Indiana’s law.

 

Three or more city citations in a calendar year can lead to losing the permit for up to one year after a hearing before the Board of Public Works and Safety. A new permit cannot be issued until fines are paid.

 

May 18, 2026