Can a renter run a short-term rental in a New Orleans neighborhood?

Not as a separate investment. Residential permits need an owner, and a permitted operator living on site during every stay.

What about commercial areas?

Commercial short-term rentals stopped taking new applications in June 2023, and new ones now need conditional-use approval. Check the exact parcel with the city before signing anything.

What do residential permits cost?

An owner permit of $250 and an operator permit of $150, plus a $50 application fee, renewed every year.

How many guests are allowed?

At most three guest bedrooms and two guests per bedroom.

Yes. Only one residential short-term rental or B&B is allowed per city square, decided by a quarterly lottery when several apply.

Is Rental Arbitrage Legal in New Orleans, LA?

Restricted

Legalized April 2017. Regulated through NSTR (non-commercial) and CSTR (commercial) licenses. NSTR requires homestead exemption. Quarterly application/lottery system. Updated July 1, 2023 with noise monitoring requirement. Owner or operator must be reachable and arrive within 1 hour.

Can a renter do rental arbitrage here? Only your own home. Short-term rentals are licensed only in the host's own primary residence, so leasing a separate unit to rent out is not possible.

Researched by RentalArbitrage AdminReviewed by RentalArbitrage AdminLast verified: October 2026

Requirements

Two license pathways: NSTR (Partial $250, Small $500, Large $500, all require homestead exemption) or CSTR ($1,000 + conditional use approval + operational plans). Operator Permits allow management (18+, reachable by phone, 1-hour response). Platform Permits $10,000/yr (Airbnb/VRBO). Complete living facilities (cooking, eating, sanitation) required. Single-family homes must reserve one bedroom for full-time owner occupancy. $1 million liability insurance mandatory. Guest records required (dates, party sizes, rates charged). Property zoning must permit STR use.

Restrictions

Location-restricted by zoning district (verify at property.nola.gov). One permit per city square with quarterly lottery if demand exceeds supply. NSTR licenses must hold homestead exemption. Quarterly application periods (3rd quarter 2026 through Sept 22, lottery Oct 6). Noise monitoring device mandatory for all CSTR as of July 1, 2023. Permit numbers must be included in listings. Permits non-transferable.

Taxes and Fees

$5 per night occupancy fee (residential), $12 per night (commercial). 5% city sales tax. 6.75% STR equalization occupancy tax. Airbnb/VRBO collect as marketplace facilitators.

Next Step

Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.

Run the numbers for New Orleans, LA See the New Orleans, LA market

Sources

nola.gov

Frequently Asked Questions

Can a Renter Run a Short-Term Rental in a New Orleans Neighborhood?: Not as a separate investment. Residential permits need an owner, and a permitted operator living on site during every stay.
What About Commercial Areas?: Commercial short-term rentals stopped taking new applications in June 2023, and new ones now need conditional-use approval. Check the exact parcel with the city before signing anything.
What Do Residential Permits Cost?: An owner permit of $250 and an operator permit of $150, plus a $50 application fee, renewed every year.
How Many Guests Are Allowed?: At most three guest bedrooms and two guests per bedroom.
Is There a Lottery?: Yes. Only one residential short-term rental or B&B is allowed per city square, decided by a quarterly lottery when several apply.