Overview: Are Short-Term Rentals Allowed in Terre Haute, IN?

Yes—short-term rentals are permitted in Terre Haute, Indiana. Indiana Code and statewide rules (including House Bill 1035) prohibit municipalities from outright bans on short-term rentals while allowing local governments to regulate through permits, insurance, and zoning. Terre Haute operates under the Vigo County Unified Zoning Ordinance, which includes provisions for transient lodging uses such as Bed & Breakfast establishments and provides mechanisms like Special Exceptions to authorize lodging uses in appropriate zoning districts. In practice, an STR in Terre Haute can be operated legally as a permitted use, a special exception, or a nonconforming use, subject to local zoning, permitting, and state-level requirements for taxes and insurance.

How to Start a Short-Term Rental Business in Terre Haute

• Confirm zoning eligibility: Identify your property’s zoning district and review permitted principal uses, accessory use rules, and special exception criteria for lodging uses (e.g., Bed & Breakfast). Where lodging is not permitted by right, prepare to seek Special Exception approval.
• Evaluate nonconforming rights: If the property was lawfully used as transient lodging before current zoning, it may continue as a legal nonconforming use; verify status with the Planning Department.
• Assemble documentation: Prepare owner identification, property deed or proof of control, site plans or property descriptions, and evidence of compliance with health and safety standards.
• Apply for permits: Depending on the district and use, secure any required Improvement Location Permit and Certificate of Use and Occupancy. For lodging uses not permitted by right, file a Special Exception application with the Area Board of Zoning Appeals through the Plan Commission.
• Obtain insurance: Secure primary liability insurance appropriate to transient lodging risks; Indiana hosts commonly purchase commercial or specialized short-term rental policies.
• Register for taxes: Register with the Indiana Department of Revenue to collect and remit Gross Retail Tax (7%) on rentals of 29 nights or fewer and applicable Vigo County Innkeeper’s Tax; set up recurring filings.
• Publish required notices: Post occupancy limits, emergency contacts, and any other disclosures required by state or local rules; follow noise, trash, and community standards.
• Maintain compliance: Renew permits annually, address inspections or violations promptly, and keep tax filings current; maintain insurance coverage continuously.

Required Documents, Permits, Licenses, and Guidelines

• Zoning compliance and occupancy:
  • Improvement Location Permit and Certificate of Use and Occupancy: Required prior to operating lodging uses to confirm the building and site meet code and zoning standards.
  • Special Exception (where lodging is not by right): Application to the Area Board of Zoning Appeals via the Area Plan Commission to allow transient lodging in a particular district; approvals can include conditions.
  • Proof of principal residence (if applicable): Some jurisdictions require the host to occupy the property as a primary residence; confirm local criteria.
• Business registration and tax:
  • Indiana Department of Revenue registration for Gross Retail Tax and County Innkeeper’s Tax.
• Insurance:
  • Primary liability insurance covering guest-related incidents during stays.
• Health and safety:
  • Compliance with smoke detector rules, habitability standards, and local inspection requirements.
• Tenant rights and guest standards:
  • Indiana’s tenant rights framework (for longer-term tenancies) and any local ordinances addressing guest behavior, occupancy, and property upkeep.

Specific Regulations: Terre Haute, Vigo County, and Indiana

• State-level (Indiana HB 1035): Municipalities cannot ban short-term rentals; cities may require permits and insurance. Hosts must collect and remit Gross Retail Tax (7%) for stays ≤29 nights, plus County Innkeeper’s Tax. Hosts should maintain primary liability insurance.
• County-level (Vigo County Unified Zoning Ordinance):
  • Land use definitions: “Bed and Breakfast” is defined as overnight accommodations and a morning meal in a dwelling unit provided to transients for compensation; “Boarding House (Lodging House)” is a dwelling where meals or lodging are provided for 5–20 persons by prearrangement for a definite period.
  • Special Exception: Section 18 establishes the Special Exception process through the Area Board of Zoning Appeals for uses not permitted by right, including certain lodging uses; applications are reviewed against district purposes and compatibility standards.
  • Permits and occupancy: Sections 5 and 4 require Improvement Location Permits, administration by the Area Plan Commission/Director, and Certificate of Use and Occupancy before use.
  • Enforcement and nonconforming uses: Sections 6 and 7 detail enforcement remedies and protections for existing, lawful nonconforming lodging uses.
• Local fee context: Social media reporting indicates Terre Haute adopted an ordinance requiring landlords to pay a $5 fee for renting out properties; verify current fee amounts and applicability to STRs with the City Clerk or Finance Department.
• Operational norms (commonly required in Indiana cities):
  • Minimum stays (e.g., two nights in some jurisdictions), restrictions on large gatherings, and compliance with noise/trash standards.

Contact Information ( Terre Haute and Vigo County)

• Vigo County Area Plan Commission and Board of Zoning Appeals
  • Website: www.vigocounty.in.gov/egov/apps/document/center.egov?view=item&id=47
  • Phone: (812) 462-3300
  • Address: Vigo County Courthouse, 33 South Third Street, Terre Haute, IN 47807
• City of Terre Haute (Clerk’s Office and Finance Department)
  • Website: www.terrehaute.in.gov
  • Phone: (812) 232-9450
  • Address: 17 Harding Avenue, Terre Haute, IN 47807
• Indiana Department of Revenue (Tax Registration and Filing)
  • Website: www.in.gov/dor/
  • Phone: (317) 232-2240

Links to Source Pages

• Vigo County Unified Zoning Ordinance (official zoning for Terre Haute and Vigo County): www.vigocounty.in.gov/egov/apps/document/center.egov?view=item&id=47
• Indiana short-term rental overview (state rules, taxes, insurance, examples): www.steadily.com/blog/airbnb-short-term-rental-laws-and-regulations-in-indiana
• Local media note on Terre Haute landlord fee ordinance ($5): www.facebook.com/WTHITV/posts/a-new-ordinance-in-terre-haute-requires-landlords-to-pay-a-5-fee-for-renting-out/1601593427961558/