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New regulations for short-term rentals in Louisville

Short-term rentals are on the rise in Louisville. What’s changed with a new ordinance?

LOUtoday_Historic Peterson Mansion

Louisville has hundreds of short-term rentals, like the historic Peterson Mansion.

Photo via Airbnb

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There are new rules in place for short-term rentals in Louisville — like Airbnb and Vrbo. After months of community input and public hearings, the official update regulations were released earlier this month. Here are some of the biggest changes Metro Council made:

What’s new?

  • The fee for short-term rental license applications is increasing — from $100 to $250.
  • If the short-term rental is “owner-occupied,” the owner must live in the property for six months before applying for a license. Important if you were thinking of, say, putting your house up for next year’s Derby.
  • No large groups — the new ordinance limits short-term rentals to 12 adult occupants at a time. That restriction will be considered on a case-by-case basis, though.
  • The new rules aim to prevent too many short-term rentals in the same neighborhood by blocking applications if two short-term rentals already exist within 600 ft on a residential street.


Supporters of the new rules claim it’s a move to protect residents who say that their neighborhoods are changing. There are hundreds of short-term rental properties in Louisville, with several thousands of applications awaiting review, according to the Metro Government. Many of them are concentrated in the Butchertown, Shelby Park, Clifton Heights, and Phoenix Hill neighborhoods.

Can I still own a short-term rental?

Yes. These new rules just make it a bit more difficult if your neighborhood already has several short-term rentals nearby, and it’s now a little more expensive to turn your property into a short-term rental.

I’m visiting Louisville, can I still get a short-term rental?

Yes. There are around 2,400+ short-term rental properties across Louisville, including some cool and unique options.