Regulations >
Nebraska >
Lincoln

Want to see how Lincoln compares to other top cities in Nebraska?  Explore all city regulations in Nebraska. →

B

Lincoln, NE

Generally Investor Friendly

Local STR Agent

Local STR Agent

Lincoln STR Expert
Lincoln, Nebraska skyline

STR Regulations for Lincoln, Nebraska

Overview: Are short-term rentals allowed in Lincoln, NE?

  • Yes. Short-term rentals are explicitly allowed in Lincoln under a structured licensing and zoning framework. A short-term rental is defined as the rental of all or a portion of a residential dwelling for a length of stay per guest visit of no more than 30 consecutive days. The City adopted regulations effective September 20, 2021. Licensing is administered by the Building & Safety Department, and a Hotel Occupation Tax applies to STR listings within the City. The regulations apply within the Lincoln city limits and three miles outside the city limits.

How to start a short-term rental business in Lincoln

  1. Confirm zoning eligibility
  • STRs are allowed as a conditional permitted use in the following districts: AG, AGR, R-1 through R-8 (residential), O-1, O-2, O-3 (office), R-T (transitional), and B-1 through B-5 (business), H-1, H-2, H-3, and H-4 (industrial).
  • Note: In AG, AGR, and R-1 through R-8, no signs are permitted for STRs. An accessory dwelling unit may be used as an STR.
  1. Obtain a short-term rental license
  • Apply through the Building & Safety Department. Each rental unit requires a separate license. License cost is $250 per unit, and licenses must be renewed annually.
  • You must secure a license before advertising any STR listing.
  1. Prepare required information and documents
  • Property details (parcel ID, street address, unit number).
  • Ownership proof (or written authorization if tenant or property manager).
  • Contact information (mailing address, phone, email).
  • Emergency contact: someone who can reach the property within 45 minutes.
  • Online payment method (credit card or ACH) for fees.
  • For tenants/managers: a signed authorization letter from the property owner; a template is available from the city.
  1. Comply with safety and occupancy limits
  • Occupancy limit: total number of sleeping areas times two, up to 12 persons total.
  • Sleeping areas are in habitable spaces with at least one operable emergency escape/rescue opening (egress window). Bedrooms qualify; hallways, kitchens, and bathrooms do not.
  • Multi-family limits: in R-1 through R-8, no more than 10% of the total dwelling units on the premises may be licensed as STRs, but each such premises may have at least one STR regardless of the 10% cap.
  1. Collect and remit taxes
  • The Hotel Occupation Tax (HOT) applies to STR listings in the City; collection is handled by the Finance Department. STR operators must register and remit HOT as required by city ordinance (see Title 3; tax rates are not stated in the provided content).
  1. Maintain ongoing compliance
  • Follow all municipal code requirements; renew annually; keep records; and avoid prohibited conduct (e.g., advertising without a license).

Required documents, permits, licenses, and guidelines

  • Short-Term Rental License: Required per unit; annual renewal; $250 per unit.
  • Authorization letter (tenants/managers): Property owner’s written authorization; city provides a template.
  • Safety compliance: Sleep area egress standards; adherence to occupancy limits.
  • Zoning compliance: Confirm permitted status in the subject district; no STR signs in AG, AGR, R-1 through R-8.
  • Tax registration: Hotel Occupation Tax registration with the Finance Department (rate details are not provided in the source content).

Specific regulations (City of Lincoln, 3-mile extraterritorial area, and State context)

  • City licensing and enforcement framework (Lincoln Municipal Code, Chapter 5.39)

    • 5.39.010: Definitions
    • 5.39.020: License required; prohibited conduct
    • 5.39.030: Applications; fees; renewal
    • 5.39.040: Revocation or denial
    • 5.39.050: Penalties for violations

  • Zoning provisions (Lincoln Municipal Code, Title 27)

    • STRs are a conditional permitted use in numerous districts (see zoning eligibility above).
    • Section 27.02.200: General provisions relevant to zoning applicability.
    • Section 27.06.070: Additional zoning standards (consult code for specific operational conditions).
    • Section 27.62.040(c)(1)-(5): Additional conditions/limitations for STRs.

  • Hotel Occupation Tax (Title 3)

    • The City applies HOT to STR listings within the City of Lincoln. The Finance Department administers collection; specific rates are not provided in the content reviewed.

  • State-level regulations (Nebraska)

    • No state-level STR-specific framework is identified in the provided sources; operators must comply with applicable state tax and business obligations. Consult the Nebraska Department of Revenue for state-level requirements (sales/use tax and any local occupancy tax frameworks). Links to state-level statutes were not provided in the sources.

Contact information (local authority in charge of STRs)

  • Licensing (Building & Safety Department)
  • Zoning (Planning Department)
  • Taxes (Finance Department)
  • Mailing address (City of Lincoln)
    • 555 South 10th Street, Lincoln, NE 68508

Links to source pages

Notes and cautions for investors

  • Licensing is mandatory before listing or advertising; advertising without a license is unlawful.
  • Occupancy limits are strictly enforced; ensure sleeping areas meet egress requirements.
  • In residential districts (AG, AGR, R-1 through R-8), no STR signage is permitted.
  • In multi-family buildings in R-1 through R-8, the 10% cap applies; however, at least one STR is permitted per premises regardless of the 10% cap.
  • Taxes: You must register for and remit the City’s Hotel Occupation Tax. The City’s Finance Department administers this tax; specific rates are not included in the provided materials.
  • Extraterritorial reach: The City’s regulations apply within the City limits and three miles beyond.
  • If you are a tenant or property manager, you must provide written authorization from the owner before the City will issue a license.
  • Municipal code and zoning sections interact; for edge cases (e.g., accessory dwellings, mixed-use zones), review the relevant code sections or consult the Planning Department.

What do Airbnb hosts actually earn in Lincoln?

Lincoln hosts earn a median $27,016/year with $155 ADR and 61% occupancy.

Top performers pull in $37,000+ per year.

See the full Lincoln market breakdown →

Next step

Found a property in Lincoln?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Lincoln →

Free brief

Get the free Lincoln STR Investment Brief

Revenue data, top neighborhoods, seasonal trends, and the key regulations for Lincoln, Nebraska in one email.

Lincoln

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
View Full Lincoln Market Analysis →

Photos of Lincoln

Overview of Lincoln

Lincoln, Nebraska, is the state capital and a vibrant city known for its rich history, diverse cultural scene, and bustling university atmosphere. As of the recent census, Lincoln has a population of approximately 293,000 residents. The city is located about 60 miles southwest of Omaha, the nearest major city, making it easily accessible for visitors seeking a balance of urban and small-town charm.

Lincoln hosts several notable landmarks that attract tourists and make it an appealing destination for short-term rentals. Among these is the Nebraska State Capitol Capitol, an architectural marvel designed by Bertram Goodhue, which features a unique tower design and offers panoramic views of the city from its observation deck.

Art and history enthusiasts will appreciate the Sheldon Museum of Art Museum, which showcases a vast collection of American art. Additionally, the city is home to the vibrant Historic Haymarket District Haymarket, a lively area filled with restaurants, shops, and entertainment venues housed in beautifully restored turn-of-the-century warehouses.

For outdoor lovers, the Sunken Gardens Gardens is a must-see, with its stunning displays of varied flora and intricate landscaping. The gardens have been consistently ranked among the top public gardens in the United States. The city's extensive trail network, including the MoPac Trail Trail, provides ample opportunities for biking, running, and walking.

In addition, Lincoln's strong university presence, anchored by the University of Nebraska-Lincoln UNL, brings a youthful energy and a wide array of cultural and sporting events, further enhancing its appeal as a destination for short-term stays. Visitors often come for Nebraska Cornhuskers football games at Memorial Stadium Stadium, which can accommodate over 85,000 fans, contributing to the city's vibrant game day atmosphere.

Overall, Lincoln’s blend of historical landmarks, cultural attractions, outdoor activities, and university events makes it a compelling location for short-term rentals, catering to a diverse range of interests and visitors.

Want to know if a property in Lincoln is a good investment?

Enter an address to get instant revenue potential and comps.