Rental Arbitrage in Indianapolis, IN

Researched by RentalArbitrage Admin
Permit required

Permit required, issued to the property owner. Indianapolis requires a short-term rental permit for each property, issued to its owner as of January 1, 2025, and state law bars the city from prohibiting short-term rentals or restricting them unreasonably. Non-owner-occupied rentals in residential zones can be made to seek a special exception or variance. Rental arbitrage is not permitted unless the owner holds the permit. Read the rules and sources.

Average daily rate
$182.50
Occupancy
57%
Annual revenue potential
$31,400
Source: AirDNA Figures for the Indianapolis market, trailing 12 months, as of September 2026. Markets are metro areas, not city limits.

Short-Term Arbitrage Isn't an Option Here

Only owners can get a short-term rental license in Indianapolis, IN, so leasing a unit to rent it out to guests isn't possible. That is why this page shows no rent ceiling or short-term calculator. If the lease and building allow furnished stays of 30 days or more, try the mid-term rental calculator.

The Indianapolis, IN Market

AirDNA's Indianapolis market averaged a $182.50 daily rate at 57% occupancy over the last 12 months, about 17.3 booked nights and $3,700 of booking income a month for an average listing.
Indianapolis requires a short-term rental permit for each property, and the permit is issued to the owner. Indiana law bars the city from prohibiting short-term rentals, but a tenant can't hold the owner's permit, so rental arbitrage would need the owner to be the applicant. That makes it a deal to structure with the landlord, not one a tenant can do alone.

Risks to Weigh

  • The permit is issued to the property owner, so a tenant needs the owner to apply
  • Non-owner-occupied rentals in residential zones may need a special exception or variance
  • The city can revoke a permit after repeated violations
  • The permit fee reported at $150 should be confirmed with the city

Frequently Asked Questions

Can a Renter Do Rental Arbitrage in Indianapolis?
Not alone. State law and the city's guide describe the permit as issued to the property owner, so the owner would need to apply.
How Busy Is the Indianapolis Short-Term Rental Market?
AirDNA's Indianapolis market averaged a $182.50 daily rate at 57% occupancy over the last 12 months, with annual revenue of about $31,400.
Can Indianapolis Ban Short-Term Rentals?
Not by zoning. Indiana law bars cities from restricting them in a way intended to or having the effect of prohibiting them.
How Fast Is the Permit Issued?
Indiana law requires the city to issue a permit within 30 days of a complete application.
What Can a Renter Do Instead?
Ask the landlord to apply for the permit, or offer furnished stays of 30 days or more if the lease allows them.