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Bloomington

Indiana · United States
Active
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Bloomington Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes
Tax Rate7% Indiana state sales tax + 5% Monroe County innkeeper's tax (total ~12%). Hosts must obtain a Registered Retail Merchant Certificate from the Indian
Permit FeeRental Occupancy Permit required (fee ~$100/year per older sources; verify current fee with HAND department). Penalty for unregistered rental: up to $
PenaltiesUnregistered rental: up to $100/day fine. Operating without a valid permit: fines from $2,500 (first offense) up to $5,000 (subsequent offenses in sam
Occupancy LimitBased on number of legal bedrooms in unit; listed on occupancy permit issued by HAND.
Browse all 5 STR regulations in Indiana → Browse all 535 STR regulations in United States →

Bloomington Airbnb & Vacation Rental Regulation Overview

Bloomington Short-Term Rental Regulations Overview

Short-term rental operations in Bloomington, Indiana are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are Rental Occupancy Permit required (fee ~$100/year per older sources; verify current fee with HAND dep.

Tax Requirements for Airbnb Hosts in Bloomington

Short-term rental operators in Bloomington should be aware of these tax obligations: 7% Indiana state sales tax + 5% Monroe County innkeeper's tax (total ~12%). Hosts must obtain a Registered Retail Merchant Certificate from the Indiana Department of Revenue..

Hosting Rules and Restrictions in Bloomington

Key operational rules for vacation rental hosts in Bloomington include: Occupancy limit: Based on number of legal bedrooms in unit; listed on occupancy permit issued by HAND..

Zoning and Location Requirements in Bloomington

Zoning considerations for short-term rentals in Bloomington: STRs permitted in applicable zoning districts; zoning laws limit certain residential areas. Properties must comply with the Unified Development Ordinance (Title 20). Verify specific district allowance. Density rules: None confirmed at city level..

Penalties for Non-Compliance in Bloomington

Hosts who fail to comply with Bloomington's short-term rental regulations may face enforcement action. Unregistered rental: up to $100/day fine. Operating without a valid permit: fines from $2,500 (first offense) up to $5,000 (subsequent offenses in same year) per secondary sources. City may revoke ren.

Platform Obligations in Bloomington

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Bloomington: No platform-specific marketplace collection agreement confirmed at city level; state sales tax may be collected by platform (e.g., Airbnb) under Indiana DOR agreements..

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes
Tax Registration
Yes
Permit Fee
Rental Occupancy Permit required (fee ~$100/year per older sources; verify current fee with HAND department). Penalty for unregistered rental: up to $100/day.
Occupancy Limit
Based on number of legal bedrooms in unit; listed on occupancy permit issued by HAND.
Tax Rate
7% Indiana state sales tax + 5% Monroe County innkeeper's tax (total ~12%). Hosts must obtain a Registered Retail Merchant Certificate from the Indiana Department of Revenue.
Zoning Restrictions
STRs permitted in applicable zoning districts; zoning laws limit certain residential areas. Properties must comply with the Unified Development Ordinance (Title 20). Verify specific district allowances with Planning & Transportation Department.
Density Rules
None confirmed at city level.
Platform Obligations
No platform-specific marketplace collection agreement confirmed at city level; state sales tax may be collected by platform (e.g., Airbnb) under Indiana DOR agreements.
Compliance Notes
All rental properties within Bloomington city limits must be registered with and inspected by the Department of Housing and Neighborhood Development (HAND) under BMC Title 16 (Residential Rental and Lodging Establishment Inspection Program). An occupancy permit must be displayed inside the unit. Bloomington Municipal Code codified through Ordinance No. 2026-05, passed February 18, 2026.
Effective Date
Title 16 program ongoing; current code through Ord. 2026-05 (Feb 18, 2026).
Key Notes
Bloomington, IN (home to Indiana University) allows STRs subject to permit and inspection requirements under BMC Title 16. Indiana state law prevents outright municipal bans on STRs. Do NOT confuse with Bloomington, MN, which bans STRs. The 2016 STR-specific draft ordinance was proposed but the current operative framework is BMC Title 16 rental registration. Verify current HAND permit fees directly.
Penalties
Unregistered rental: up to $100/day fine. Operating without a valid permit: fines from $2,500 (first offense) up to $5,000 (subsequent offenses in same year) per secondary sources. City may revoke rental occupancy permit for repeated noncompliance.
Additional Context
Monroe County also levies an innkeeper's tax applicable to STR income. Indiana University properties are exempt from city rental inspection program. STR market is strong due to Indiana University events, Little 500 race, and Lake Monroe tourism.
Sources
City of Bloomington HAND Rental Program: https://bloomington.in.gov/housing/rental-occupancy
City of Bloomington Permits: https://bloomington.in.gov/permits
Bloomington Municipal Code (Municode, through Ord. 2026-05): https://library.municode.com/in/bloomington/codes/code_of_ordinances
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

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Frequently Asked Questions

Is Airbnb legal in Bloomington?

Yes, Airbnb and short-term rentals are legal in Bloomington with proper registration and permits. All rental properties within Bloomington city limits must be registered with and inspected by the Department of Housing and Neighborhood Development (HAND) under BMC Title 16 (Residential Rental and L

Do you need a permit for Airbnb in Bloomington?

Yes. Bloomington requires the following for short-term rental operation: Yes.

What taxes apply to short-term rentals in Bloomington?

Short-term rental hosts in Bloomington are subject to the following tax obligations: 7% Indiana state sales tax + 5% Monroe County innkeeper's tax (total ~12%). Hosts must obtain a Registered Retail Merchant Certificate from the Indiana Department of Revenue..

What are the penalties for illegal Airbnb hosting in Bloomington?

Hosts who operate without proper permits in Bloomington may face enforcement. Unregistered rental: up to $100/day fine. Operating without a valid permit: fines from $2,500 (first offense) up to $5,000 (subsequent offenses in same year) per secondary sources. City may revoke rental occupancy permit for repeated noncompliance..

What are the key STR compliance requirements in Bloomington?

Bloomington, IN (home to Indiana University) allows STRs subject to permit and inspection requirements under BMC Title 16. Indiana state law prevents outright municipal bans on STRs. Do NOT confuse with Bloomington, MN, which bans STRs. The 2016 STR-specific draft ordinance was proposed but the current operative framework is BMC Title 16 rental registration. Verify current HAND permit fees directl

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