The City of Fishers, Indiana, has introduced an ordinance capping the number of single-family rental homes in each subdivision to 10%. The Ordinance, No. 022425A, seeks to address the growing trend of corporate investors purchasing large numbers of homes for rental purposes in the area. This issue, which has been the focus of community associations across the nation in recent years, has raised concerns about housing affordability and neighborhood stability.

City officials cited a housing study conducted in 2022 that indicates rental rates in Fishers are slightly above the national average. In support of the proposed Ordinance, Mayor Scott Fadness has previously emphasized the importance of preserving housing opportunities for families and maintaining neighborhood integrity. He noted that some neighborhoods in Fishers have rental rates as high as 30% to 40%, which has prompted the need for regulation.

City officials conducted a virtual townhall meeting on March 10, 2025 with homeowners, board members, and other members of the community association industry to provide information about the proposed rental cap and registration program. Coordinated by the Mayor’s Chief of Staff, Jordin Alexander, the City detailed key terms of the proposed Ordinance, the implications for local associations, and the timeline for implementation.

 

Elements of Ordinance

  • Rental Cap: Limits single-family rentals to 10% per subdivision. Homes rented before December 31, 2025, are exempt until sold/transferred.
  • Rental Registry: Requires landlords to register property and obtain a permit, which will remain valid until ownership transfers.
  • Effective Date: If passed, the Ordinance will become effective January 1, 2026.

Ms. Alexander did note the Ordinance offers some flexibility, as it is anticipated that owners who are currently leasing their homes may be grandfathered in by the City. These “legacy owners” would be permitted to continue leasing until the property is sold or transferred. In addition, Ms. Alexander noted that the current draft of the Ordinance provides that certain “hardship” allowances (ex. inability to sell for a period of time, military deployment, job relocation, etc.) will be considered.

 

Enforcement of Ordinance

City officials detailed the enforcement process for those who violate the ordinance, and noted that fines for noncompliance “will be steep.”  The proposed fines currently start at $250 for a violation and may escalate to $7,500.

KSN attorney Kelly Elmore noted that hundreds of HOAs and community associations in Fishers will be affected by this Ordinance.  Elmore, who is also the Chair for the Legislative Action Committee for CAI Indiana (Community Associations Institute) stated:

“If passed, this Ordinance will significantly affect the manner in which HOAs, condominium associations and townhome associations in Fishers enforce existing covenants. The City has made clear that those community associations that do not currently have a rental restriction in their governing documents will be required to comply with the rental cap. For those associations that already have a rental restriction in place, this Ordinance will likely bolster the Association’s ability to enforce the provisions of the governing documents and seek penalties for noncompliance.”

 

Additional Information & Upcoming Dates

The Fishers City Council plans to hold public hearings and conduct additional discussion before the Ordinance’s potential effective date of January 1, 2026. The Ordinance will be discussed at a Public Hearing during the Fishers City Council meeting on April 21, 2025 at 7:00 p.m.

Jordin Alexander, Chief of Staff for the Mayor, invited homeowners to submit questions about the proposed Ordinance to FishersIN.gov/RentalRegistration. The information presented at the townhall meeting is available at FishersIN.gov/RentalRegistration.

 

Legal Resource

Do not hesitate to contact our law firm if your Indiana community association has questions regarding rental policies, short term rental, or other legal concerns.

Please call 855-537-0500 or visit www.ksnlaw.com.

Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

 

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