Overview: Are STRs Allowed in Kokomo, IN?

• Yes. Short‑term rentals are allowed in Kokomo, Indiana. The City of Kokomo does not have a dedicated short‑term rental ordinance, and “short‑term rental” is not expressly prohibited by the zoning code. However, any lodging use must comply with Kokomo’s zoning requirements for the subject property and applicable state and county tax obligations. A Bed & Breakfast (B&B) is a specific land use that is listed as a Special Exception in multiple residential zoning districts, and operating a B&B requires formal approvals (see “Zoning and Special Exception (B&B)” below). Source: 1

How to Start a Short‑Term Rental in Kokomo, IN

• Step 1: Determine whether your property is located within the City of Kokomo’s zoning jurisdiction. Confirm the zoning district on the City’s official zoning map and whether overlay districts apply (e.g., airport, flood, wellhead protection). Source: 2
• Step 2: Confirm land use permissibility:
  • If operating as a traditional STR (no on‑site breakfast service, owner may not be on‑site), ensure your zoning district does not prohibit such use. If a STR would be considered a “boarding house” or “multifamily” use in your district, you may require approval.
  • If operating as a Bed & Breakfast, apply for a Special Exception in districts where B&B is listed as special exception (see “Zoning and Special Exception (B&B)” below). Source: 2
• Step 3: Obtain a Certificate of Occupancy (CO). Kokomo requires a CO for all new uses. Ensure the CO reflects “lodging” or “Bed & Breakfast” (if applicable). Source: 2
• Step 4: Register for state and county taxes:
  • Register with the Indiana Department of Revenue to collect and remit the 7% state sales tax on transient lodging.
  • Register with Howard County to collect and remit the 5% county innkeeper’s (lodging) tax on transient lodging. Source: 1
• Step 5: Comply with general zoning development standards (setbacks, lot coverage, height, parking) that apply to your district. If needed, secure variances or administrative interpretations. Source: 2
• Step 6: Confirm insurance and any HOA/POA rules or covenants that may govern STR operations.

Required Documents, Permits, Licenses, and Guidelines

• Certificate of Occupancy (CO) — required for all new uses in Kokomo; lodging uses require a CO that accurately reflects the use. Source: 2
• Improvement Location Permit — may be required for certain site changes or signage associated with a lodging operation. Source: 2
• Special Exception (B&B) — if operating as a Bed & Breakfast, obtain approval in districts where B&B is a Special Exception. Source: 2
• Business registration and tax accounts:
  • Indiana Department of Revenue registration for state sales tax on lodging (7%). Source: 1
  • Howard County registration for innkeeper’s tax (5%). Source: 1
• Zoning compliance documents:
  • Proof of zoning district classification and verification that lodging/STR/B&B is a permitted or special exception use.
  • Documentation that applicable overlay districts (e.g., flood, airport hazard, wellhead protection) do not impose prohibitions or additional restrictions on the use. Source: 2
• Compliance with Kokomo’s development standards and processes:
  • All uses must fully comply with zoning district standards; if they cannot, applicants should pursue variances or special exceptions through the Board of Zoning Appeals (BZA). Source: 2

Specific Regulations: Kokomo, Howard County, and Indiana City of Kokomo (Zoning)

• No dedicated STR ordinance exists in Kokomo; STRs are permitted by default unless prohibited or restricted by zoning or overlays.
• Bed & Breakfast is a specific land use:
  • Special Exception in AR District. Source: 2
  • Special Exception in R1 District. Source: 2
  • Special Exception in R2 District. Source: 2
  • Special Exception in R3 District. Source: 2
  • Special Exception in R4 District. Source: 2
  • Special Exception in R5 District. Source: 2
  • Special Exception in M1 District. Source: 2
• Uses similar to “boarding house” or “dwelling, multifamily” may be treated as special exceptions or non‑permitted depending on the district. Operators should confirm use classification prior to listing. Source: 2
• Kokomo’s zoning code includes overlay districts (e.g., Airport Hazard, Flood Hazard, Wellhead Protection). Overlay rules supersede standard zoning and can add constraints or prohibit certain uses. Verify whether an overlay applies to the parcel before finalizing operations. Source: 2
• All uses require a Certificate of Occupancy; Improvement Location Permits may apply for site changes, and signage must follow Kokomo’s sign standards. Source: 2
• The Plan Commission and Board of Zoning Appeals administer the code, variances, and special exceptions; the Planning Director oversees administration and enforcement. Source: 2

Howard County (Taxation)

• 5% innkeeper’s (lodging) tax applies to short‑term rentals in Howard County (county where Kokomo is located). Hosts must collect this tax from guests and remit to the county. Source: 1

State of Indiana (Taxation and General Requirements)

• 7% Indiana state sales tax applies to transient lodging. Hosts must register with the Indiana Department of Revenue, collect the tax from guests, and remit it to the state. Source: 1
• Indiana’s zoning enabling statutes and administrative framework authorize local zoning controls; Kokomo’s zoning code is adopted under state law (IC 36‑7‑4). Source: 2

Compliance Guidance

• If your intended use is not expressly permitted in your zoning district, consider:
  • Applying for a Special Exception (e.g., B&B) if listed in that district.
  • Seeking a Development Standard Variance for dimensional relief (e.g., setbacks, parking).
  • Requesting a formal interpretation of “questionable land use” through the BZA process. Source: 2
• Keep an up‑to‑date Certificate of Occupancy and maintain compliance with all district standards to avoid enforcement action (violations can result in fines and other penalties). Source: 2

Local Authority Contacts

• City of Kokomo – Planning Department
  • Phone: (765) 456‑7422
  • Email: Not provided in the sources
  • Website: www.gosummer.com/vacation-rental-management/kokomo-indiana (site referencing Kokomo STR context)
• Indiana Department of Revenue (State Sales Tax Registration)
  • Website: www.in.gov/dor (general reference; specific STR registration details are not provided in the sources)
• Howard County (Innkeeper’s/Lodging Tax)
  • Phone/Website: Not provided in the sources; contact the County Treasurer or Auditor for registration and remittance details. Source: 1

Important Notes

• Kokomo’s zoning code does not expressly define “short‑term rental” as a discrete land use; the closest defined lodging use is “Bed & Breakfast.” Operators should use Kokomo’s “Questionable Land Use” process for definitive determinations on STR classification in a specific district. Source: 2
• Overlay districts (Airport Hazard, Flood Hazard, Wellhead Protection) supersede general zoning rules and can impose additional restrictions. Always verify overlay applicability on the official zoning map and with the Planning Department. Source: 2
• Operating without required approvals (CO, Special Exception) or failing to collect/remit taxes may lead to enforcement action and penalties. Source: 2

Links to Source Pages

• STR regulations overview, seasonality, and taxes (sales tax and Howard County innkeeper’s tax) — www.gosummer.com/vacation-rental-management/kokomo-indiana
• Kokomo Zoning Ordinance (Full Ordinance; zoning uses, standards, CO, overlays, BZA process) — cms4files1.revize.com/kokomoin/Full%20Ordinance%20Updated%2005.18.2023.pdf