Lexington, Kentucky Short Term Rental Regulations

City Code of Ordinances

A short-term rental is defined as a dwelling, unit, or room rented, leased, or assigned for a tenancy of less than thirty consecutive days and where no meals are served or provided by the host to any guest. A short-term rental may be owner-occupied or non-owner-occupied.

During any given week, a home/room can only be rented for one booking. This means that over the course of a year, the maximum number of bookings is 52.

Any room or portion of a rented dwelling cannot function as a second dwelling unit on the property, meaning that living areas and kitchen facilities must be shared among all occupants.

View the Short-Term Rental Guide for more information. 

Business License Requirements

Anyone that opens a business in Fayette County must obtain a business permit (also known as an occupational license).

Building and Housing Standards

Lexington has rules and regulations that specify minimum building, design, maintenance standards, habitability, health, and safety requirements. Some rules and regulations that apply to residential and non-residential properties may apply to your listing.  Consult the Lexington Current Building Codes for more information.

Tourist and Local Taxes

As a short-term rental host, you are required to pay taxes on the rental the income you receive. These taxes include:

•  8.5% local transient room tax
•  1% state transient room tax
•  6 % sales tax

Other Rules

It is also essential to understand and abide by other contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable. Visit the Lexington website for more information.