A guide for Brown County cabin and short-term rental owners
A Brown County cabin rented to guests is a tourist home under county code. That one label sets the zoning path, the septic sizing, the pool and spa permit, and the tax. Here they are in plain words.
Hearth and Haven Hosting is an Indiana company. We spent the past year focused on the Emerald Coast of Florida, and now we are focusing on our home state again. Every rule below comes from Indiana law, Brown County code, or the Brown County Health Department. Where a rule depends on one property, we say so.
Nashville, Indiana, is the only incorporated town in Brown County. Helmsburg, Gnaw Bone, Bean Blossom, and Belmont all sit under county zoning. This article covers the county rules, which apply to every cabin outside the town limits of Nashville, Indiana.
State law sets the floor for every Indiana short-term rental
Indiana’s short-term rental law defines a short-term rental as a home or unit rented for terms under 30 days through a short-term rental platform. The law draws one big line. Owner-occupied short-term rentals are a permitted residential use anywhere homes are allowed. Cities and counties cannot zone them out.
Non-owner-occupied short-term rentals are different. A city or county may require a special exception, special use, or variance. It may not use that process to prohibit them. A denial can be appealed. A cabin the owner does not live in is non-owner-occupied, and the special exception path is the one this article covers.
Local rules may cover only fire and building safety, sanitation, traffic, pollution, noise, property maintenance, nuisance, and an emergency contact. They must be enforced the same as for any home. Where a local permit exists, state law caps it: one permit per property, issued within 30 days, good for 1 year, fee capped at $150, renewal at $0, and the application is made by the owner. The application may ask for the property manager’s name, address, email, and phone. A permit can be revoked only after 3 or more citations in one calendar year, and for no more than 1 year.
Renting without a required permit is a Class C infraction per transaction. HOA and condo rules still apply on top of all of this.
Brown County uses three definitions for guest lodging
Brown County code names three kinds of guest lodging. A Tourist Home is a building with a maximum of 5 guest rooms for transient guests. A room with a sleeper sofa counts as a guest room. A Home Stay is owner-occupied, with up to 2 guest rooms, and it is permitted in all residential districts. A Bed and Breakfast is operator-occupied, with up to 7 rooms, serves breakfast, and allows stays of no more than 30 consecutive days.
A cabin the owner does not live in, rented whole to guests, is a tourist home. Everything below is written for the tourist home.
Tourist home zoning, lot size, and setbacks depend on the district
Here is how Brown County treats a tourist home by district:
- FR, R1, R2, and LR: a special exception from the Board of Zoning Appeals is required.
- GB and AB: a tourist home is a permitted use.
- FP, FW, FF, and I: a tourist home is not allowed.
A tourist home must meet all life, health, and safety codes in any zone. An accessory dwelling unit cannot be a tourist home or any other short-term rental. That means a guest house or a converted garage cannot be rented on its own.
A special exception lapses after 12 consecutive months unused. An owner who wins the exception and then lets the cabin sit for a year starts over.
Brown County sets minimum lots for a tourist home on septic. In FR, R1, and R2, the minimum is 3 acres. In R1 minor subdivisions, the minimum is 1.5 acres. In LR, the minimum is 0.5 acres. Setbacks are 50 feet in front, 10 feet on the side, and 25 feet in the rear.
These rules decide which cabins can become tourist homes at all. A 2-acre lot in FR does not meet the 3-acre minimum.
Septic sizing sets the guest count
The Brown County Health Department sets the guest count for a cabin on septic, and it does it with math. A guest rental septic system must meet current standards or be upgraded. The absorption field must be sized at the maximum occupancy times 250 square feet, with a 1,000-square-foot minimum.
Guests are counted by bed. A twin bed or cot counts 1 guest. A double, queen, or king counts 2 guests. A sleeper sofa counts 2 guests. Here are the two examples the Health Department uses:
- A 3-bedroom cabin with a system sized at 1,500 square feet supports 6 guests.
- A listing that sleeps 10 guests needs a 2,500-square-foot absorption field.
A cabin with more bedrooms than the property card shows triggers an upgrade. A pre-sale inspection is required. A cabin listed for 10 guests with a 6-guest septic system is out of compliance every weekend it fills.
Fees as of August 2025 in Brown County: a visual inspection is $100, a new system permit is $250, a major repair permit is $250, a minor repair permit is $100, and a reinspection is $100. Penalties run up to $1,000 for a first violation, $2,500 for a second, and $5,000 after that.
Pools and hot tubs need an annual county permit
Brown County requires an annual permit for pools and spas at tourist homes, effective January 1, 2026. Registration runs January 1 to 31. The fee is $400 for 1 to 3 pools or spas at one address. The permit carries an annual inspection and weekly bacteriological testing.
State rules add the chemistry. A pool or hot tub at a tourist home is treated as semipublic. The rules for a tourist home in Indiana are these: chlorine 1 to 7 ppm in a pool and 2 to 7 ppm in a spa, spa water no hotter than 104°F, pH 7.2 to 7.8, testing at each guest change, a monthly lab sample, a first-aid kit on site, and printed spa warnings posted..
The tax on a Brown County stay is 15%
Every stay under 30 nights in Brown County carries 7% Indiana sales tax plus 8% Brown County innkeeper’s tax, for 15% total. The Brown County innkeeper’s tax has been 8% since July 1, 2025, up from 5%. Sales tax applies to cleaning fees, pet fees, damage fees, resort fees, parking fees, and cancellation fees too.
Airbnb and Vrbo collect and remit both taxes on stays booked through them. An owner who books only through those platforms does not have to register with the state for sales tax.
Direct bookings are the owner’s job. The operator registers for a Registered Retail Merchant Certificate at $25 per location, files in INTIME, and remits monthly. Filing is due 30 days after month end if the average monthly tax was $1,000 or less, and 20 days after month end if it was more. The Brown County innkeeper’s tax on direct bookings is filed with the Indiana Department of Revenue. Stays of 30 or more consecutive nights are exempt from both taxes.
Smoke detectors, cameras, parties, and animals follow state and platform rules
Indiana’s smoke detector law requires one detector outside each sleeping area and one on each level, including the basement. Repairs are due within 7 working days of written notice.
Cameras follow platform rules. Airbnb has banned indoor cameras since April 30, 2024, even if they are turned off. Outdoor cameras must be disclosed, and none may point where guests expect privacy. Noise monitors that do not record audio are allowed if disclosed, and never in bedrooms or bathrooms. Vrbo allows no cameras or audio inside or pointed inside, and outdoor cameras must be disclosed before booking.
Parties are out. Airbnb has held a permanent ban on disruptive gatherings of any size and on “party-friendly” listings since June 28, 2022. Vrbo has zero tolerance for broken anti-party house rules. We set a two night minimum on nearly every booking. A two night minimum is how we protect a home from parties.
Service animals are welcome by law. Airbnb and Vrbo require hosts to accept service animals with no fees and no documentation. Indiana’s service animal law has no small-property exemption. A cabin with a pet fee still waives it for a service animal.
Fireworks and fire pits have rules too. Fireworks are allowed on your own property or with the owner’s permission, from 9 a.m. to 11 p.m., and later on holidays. Fire pits burn clean wood only, stay attended, need extinguishing equipment on hand, and stop during a burn ban. A guest who refuses to leave after the owner’s agent asks commits criminal trespass, a Class A misdemeanor. A property manager is the owner’s agent.
A pre-listing checklist for a Brown County cabin
Here is what to check on a Brown County cabin before it takes a guest:
- The zoning district and acreage on the property card.
- The special exception status, and the date of the last guest stay if one was granted.
- The septic record, the absorption field size, and the guest count it supports.
- The bed count, by bed type, matched to that guest count.
- The pool or spa permit, registered by January 31, with the weekly testing log.
- Smoke detectors outside each sleeping area and on each level.
- Camera and noise monitor disclosures on every platform.
- The tax setup for direct bookings: certificate, INTIME account, filing dates.
The bottom line
A Brown County cabin is a tourist home, and a tourist home has a clear set of rules. The district decides whether a special exception is needed. The septic field decides the guest count. The pool and spa permit is due every January. The tax is 15% on every stay under 30 nights, and Airbnb and Vrbo remit it on their bookings while direct bookings are filed with the Indiana Department of Revenue.
Have any questions, or want a personal property analysis on a specific property? Call or text Joseph at 812-778-2235, email [email protected], or visit hearthandhavenhosting.com.
Safe travels,
Joseph and Laura
Hoo-Hoo-Hoo-Hoosiers!