Louisville, Kentucky Short Term Rental Regulations

City Code of Ordinances

In December 2015, Metro Council passed an ordinance to regulate the use of short-term rentals. Short-term rentals are defined as a dwelling unit, such as a residence or apartment, that is rented, leased, or otherwise assigned for a tenancy of less than 30 consecutive days in duration. Short-term rentals are categorized by the type of space you host or the location of your listing:

• Short Term Rentals that are NOT the primary residence: The property where the short-term rental is located must be at least 600 feet away from any other permitted short-term rental that requires a conditional permit. This provision shall not apply to a property in the TNZD district that requires a conditional use permit even though it is the host's primary residence. Might be allowed in the following: R-E, R-1, R-2, R3, R-4, R-5, U-N, R-5A, R-5B, R-6, R-7, or R-8A district and TNZD district may be allowed upon the granting of a Conditional Use Permit.  
• Short Term Rentals that ARE primary residence: A short-term rental of a dwelling unit that is the host's primary residence is permitted by the Planning Director and is allowed in R-R, R-E, R-1, R-2, R-3, R-4, R-5, U-N, R-5A, R-5B, R-6, R-7, or R-8A district. Also, permitted in OR, OR-1, OR-2, OR-3, OTF, C-N, C-R, C-1, C-2, C-3, C-M, EZ-1, W-1, W-2, PVD, PTD, or PRD district.

The residential unit shall be limited to a single short-term rental contract for both types of short-term rental at any given moment. No more than two times the number of bedrooms plus two individuals shall reside in the short-term rental. Except when the licensed property is in excess of two acres, in which case the occupancy restriction shall be two times the number of bedrooms plus six individuals.

Use this map to see if your property qualifies for a permit. 

View Louisville Short Term Rental Ordinance here and consult Louisville Short Term Rental Information. 

Business License Requirements

For a primary residence that is zoned residential and non-residential/mixed-used, it needs an annual registration. If the property is in the Old Louisville or Limerick Neighborhood, it will need an approved Conditional Use Permit and an annual registration.  If the property is not your primary residence and it is zoned residential, you will need an approved Conditional Use Permit and an annual registration. If the property is zoned in non-residential/mixed-used, it will only need annual registration.  Application Forms, if applicable:

• Short Term Rental Annual Registration Application Form (In-Person or Mail Submittal Option)
• Short Term Rental Annual Registration Application Form (Online)
• Conditional Use Permit Process
• Short Term Rental CUP Pre-Application
• Short Term Rental CUP Formal Application

Building and Housing Standards

Louisville 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. Please consult with the Louisville Department of Codes and Regulations for more information. 

Tourist and Local Taxes

Each separate short-term rental shall comply with any currently applicable laws and regulations of the federal, state, or local governments. The transient room tax rate is 8.5% of the rent for every occupancy of a suite, room, or rooms. Property owners are required to report and remit this tax on a monthly basis to LMRC using the form TR1M-S if they use Airbnb or any other platform as a host.

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 City of Louisville for more information.