April 21, 2025 marked a significant day for rental regulations in Indiana. The City of Fishers, Indiana officially passed an ordinance that restricts rental occupancy within residential subdivisions to no more than 10% of the homes.

Following public comments from constituents and other interested individuals, many providing passionate remarks on both sides, the City Council unanimously approved the ordinance. This new rental cap law takes effect on January 1, 2026 and has significant implications for homeowners and property investors in the area.

Meanwhile, the Carmel City Council introduced Ordinance D-2770-25 at its April 21, 2025 meeting. If adopted, the ordinance would take effect on January 1, 2026 and cap residential rentals at 10% citywide.

These legislative actions mark a notable trend in local government regulation of rental properties within condominium, homeowners (HOA), and townhome community associations.

Additionally, the Indiana General Assembly is also weighing in with proposed revisions to HB 1389. This may involve taking legislative steps to prohibit Indiana cities and municipalities from implementing and/or enforcing these types of rental restrictions, raising questions about enforceability of such local ordinances.

The regulatory landscape is shifting quickly. Community associations and homeowners should closely monitor these developments and prepare to respond accordingly.

At KSN, we are closely following these developments and advising HOAs and community associations on how to navigate the legal and practical impacts of these restrictions. Whether it is updating governing documents, revising enforcement policies or addressing owner concerns, preparation is key.

If you are a board member or community association manager in Indiana, now is an ideal time to review your association’s governing documents and policies and get ahead of these regulatory changes.

Questions about rental restrictions and short-term rentals in your community association or other legal issues? Do not hesitate to 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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