Indiana, Idaho and Pennsylvania STR Laws in 2026: What Changed for Hosts

Two states made short-term rentals easier to run in 2026, and a third took a different path. Indiana (House Enrolled Act 1210) and Idaho (House Bill 583) both became law in March 2026 and took effect on July 1, 2026, and each one limits what cities and counties can do to rental owners. The third, Pennsylvania's HB 2303, was introduced in March 2026 and is still in a House committee as of September 2026. It would not remove local rules at all. It would add a statewide permit, insurance and registry system on top of them.

That split matters more than the headline. Indiana and Idaho took tools away from local governments. Pennsylvania's bill trades some freedom for predictability, and it has not moved since it went to committee.

Below is what each bill says in its own text, what is in force, what is pending, and how each changes the way I would run a property there. I have operated short-term rentals since 2016, and the lesson has not changed: the ordinance decides your business model, and the headline rarely tells you what the ordinance says.

What Passed, What Took Effect, and What Is Still Pending

Here is the status of all three bills as of late September 2026, taken from the official legislature pages and the enrolled or printed bill text.

Indiana HEA 1210: Rental Bans Off the Table, With a 2028 Grace Period

Governor Mike Braun signed House Enrolled Act 1210 on March 12, 2026, according to the governor's 2026 Bill Watch page. Most of the 418-page act deals with local government finance; the rental language sits in two sections.

Section 229 adds a new Indiana Code section, IC 36-1-20-3.6, effective July 1, 2026. It says a city, town or county may not adopt or enforce an ordinance, regulation, policy or rule that:

• prohibits or restricts an owner of a privately owned residential property from using it as a rental property, or

• has the effect of prohibiting or restricting that use.

The same section keeps three powers in local hands: generally applicable health and safety rules; building codes, fire codes and reasonable occupancy standards; and registration or inspection requirements, "provided the requirements do not operate to impose a cap or limit."

The grace period. A local government that adopted a non-compliant rule before January 1, 2026 is exempt until January 1, 2028, when it must comply. The act does not name particular cities for this. If your town had a rental cap on the books before 2026, expect it to stay enforceable until that date.

The 2018 carve-out. A separate exemption covers any unit that adopted a short-term rental ordinance before January 1, 2018 in compliance with Indiana's existing STR chapter, IC 36-1-24 (enacted in 2018). If your city is one of those, the new section does not reach its STR ordinance at all. Check the adoption date of your local ordinance before you assume the new law helps you.

Section 225 changes HOA voting. Under the amended IC 32-25.5-3-11, only homeowners association members who use their property as a homestead may vote on a prohibition or restriction on using property as a rental. A developer who still owns lots in the community is not subject to that rule. This section is marked effective "upon passage," so it was already in force by spring 2026. It does not ban HOA rental restrictions. It changes who gets to vote on them, and investors who do not live in the home lose that vote.

In practice, Indiana took caps and rental bans off the table for most local governments, with a runway to 2028 for existing ones, and left safety, codes and registration in place.

Idaho HB 583: Short-Term Rentals Treated Like Any Other Home

Idaho already barred cities and counties from banning short-term rentals outright. HB 583 goes much further. The legislature's bill page shows it passed the House 54-16 on February 12, 2026 and the Senate 23-12 on March 9, 2026. Governor Brad Little signed it on March 16, 2026, and it took effect July 1, 2026.

The industry group Rent Responsibly called it "one of the most sweeping state-level preemption laws for short-term rentals in the country" in its March 2026 write-up. Melissa Radford of the Idaho Vacation Rental Association is quoted there: "With support from 77 legislators across both chambers, Idaho has sent a strong message: homeowners deserve equal treatment under the law, whether they rent short-term or long-term." That 77 is the combined House and Senate yes votes (54 + 23).

The core rule. Local regulations may not impose "different restrictions or obligations" on short-term rentals than on single-family homes not used as rentals. The bill text lists 17 examples of what counts as a different restriction (grouped into 16 lines below). Local governments cannot require:

• owner occupation for any amount of time

• professional property management

• additional insurance

• reporting of use or other statistics

• additional fire protection or fire sprinklers

• additional or improved ingress and egress

• additional parking

• modifications to the physical structure

• inspections

• interior or exterior signage, notices or diagrams

• a limit on the days a property can be rented

• notices to neighboring properties

• increased sewer or other utility capacity

• a conditional use permit in a residential zone

• a minimum distance from other short-term rentals

• a cap on the number of short-term rentals in a county or city

• upgrades to current building code unless the same would apply without the rental use

No local STR license or fee. The bill also says no county or city shall require a license, fee, permit, certification or registration to operate a short-term rental.

What cities can still require. Only five items: smoke alarms in all sleeping areas, a fire extinguisher and carbon monoxide detector on each floor, removable escape ladders in upper-floor sleeping areas with windows, occupancy limits no stricter than non-transient residential limits under the adopted building code, and an informational handout listing exits, extinguishers, first aid kits and an emergency contact number. Every other ordinance that applies to homes, including noise, parking, nuisance, curfew and traffic, still applies to your guests.

Zoning status. A short-term rental is classified as a "non-transient residential land use" for zoning and building code purposes.

Taxes did not go away. The tax section keeps lodging taxes in place. Booking platforms must register with the Idaho State Tax Commission and collect state and applicable local taxes. If you take a booking directly, without a platform, the bill says you must meet the same collection and reporting requirements a platform would. Direct-booking operators in Idaho should treat tax collection as their own job.

One caution: the bill text addresses counties and cities. It is not a rewrite of your HOA's covenants, so read your CC&Rs separately.

Pennsylvania HB 2303: A Statewide Rulebook, Still in Committee

Pennsylvania is the outlier. HB 2303 was introduced March 18, 2026 by Rep. Lindsay Powell (D, House District 21) with 15 Democratic co-sponsors, including Rep. Mary Jo Daley, and referred to the House Tourism, Recreation and Economic Development Committee on March 19, 2026. As of September 25, 2026, the General Assembly's bill page lists no votes and no committee meetings. The 2025-2026 session is a two-year session, and a bill that does not pass before it ends has to be reintroduced.

The co-sponsorship memo on the same site says a Joint State Government Commission report counted more than 53,000 active short-term rentals in Pennsylvania as of 2023, and that the bill is meant to give counties authority to regulate them.

The printed bill text sorts operators into three tiers based on how many properties they control, with ownership through related entities counted together:

• Homestay: the owner's primary residence (lived in at least six months a year), with no more than one additional short-term rental. Needs an annual county permit, two proofs of primary residence and an annual safety inspection.

• Vacation rental: an owner with fewer than 10 short-term rentals in Pennsylvania who is not present during the stay. Needs an annual county permit per property, liability insurance, and a designated person in charge who can reach the property within one hour.

• Corporate STR operator: 10 or more properties, or several properties run through separate entities under common control. Adds remote-capable carbon monoxide monitoring, decibel-measuring noise monitors, exterior-only entrance cameras, written cleaning protocols and staff training.

Other terms in the printed bill:

• $500,000 per occurrence in liability insurance for every tier except homestays

• smoke and CO detectors, extinguishers, clear egress and a posted evacuation map for all tiers

• human trafficking awareness training as a permit condition

• monthly reporting by booking platforms, which may not list a property without a valid permit

• civil penalties up to $2,000 per violation

• an effective date 180 days after enactment, then 6 months for vacation rental and corporate operators to comply and 12 months for homestays

It also says nothing in the chapter limits a municipality's power to regulate location and operation or to prohibit short-term rentals in specific zoning districts. So the bill would give operators one statewide rulebook to follow, and it would not stop Pittsburgh, Philadelphia or a township from keeping or adding its own restrictions.

What the 2026 STR Laws Mean for Hosts and Investors

This table turns the bill text into operating decisions.

• In Indiana, underwrite to the rule that applies on the day you close, not the one that applies in 2028.

• In Idaho, stop paying for anything the law says a city cannot require, but only after the city confirms in writing that it has stopped enforcing the old rule.

• In Pennsylvania, price $500,000 liability coverage into new deals so the numbers still work if the bill passes.

Read the Ordinance, Not the Headline

I tell consulting clients the same thing every time: "The biggest mistake investors make is that they read the headlines. "They read the newspapers and they ask realtors. And what they don't do is read the ordinance, which is what they should do first."

This year proves it. A headline like "Three states made STRs easier" would mislead a Pennsylvania buyer, and "Indiana banned rental caps" would mislead a buyer in a city whose pre-2026 cap stays enforceable until 2028.

Regulation changes the business model you pick. "Whether to invest doesn't change at all," I tell clients. "The calculus doesn't change at all. What it might change is the business model you choose, meaning length of stay. You may go longer term or shorter term. You may do more specialized niche versions of it. It makes you specialize, which you should do anyway." A city that restricts stays under 30 days still leaves room for mid-term rentals to travel nurses, insurance placements and relocating families. A state that removes caps opens room for nightly stays but does not remove the need to fit the neighborhood.

The supply argument is my view, not a statistic. I have believed since before COVID that good short-term rental supply lags demand in many markets. My read is that COVID stripped out supply when a lot of hosts ran scared and forced travelers to try rentals, which grew demand. When a legislature votes to take tools away from local governments, I read that as lawmakers deciding owners were getting squeezed out. Treat it as one operator's interpretation.

If you want help reading the rules for a specific market before you sign anything, book a complimentary one-on-one diagnostic call. It is free, and if you want a written plan afterward, the paid action plan is $997.

Checklist: How to Read Your Own City or State STR Ordinance

Use this sequence on any market.

1. Find the state law first. State preemption overrides a city rule, so start at the top.

2. Pull the current local ordinance from the official code library, not a news story or a realtor summary. Note the adoption date and every amendment date.

3. Compare dates against state cutoffs. Indiana's 2018 and 2026 cutoffs are an example of how an old ordinance can be exempt or grandfathered.

4. Read the definitions section. The meaning of "short-term rental," "transient," "primary residence" and "dwelling unit" decides which rules touch you. Indiana's STR chapter and Pennsylvania's bill both define short-term as under 30 days, which is why 30-day minimum stays sit outside many STR rules.

5. List every requirement that applies only to rentals. Permits, fees, caps, day limits, owner occupancy, parking, inspections, signage, neighbor notice. Mark each one as allowed or preempted under state law.

6. Check the zoning map for your parcel. Many rules differ by zoning district, and Pennsylvania's bill would keep that district-level power in local hands.

7. Read your HOA's CC&Rs and bylaws, then check who can vote to change rental rules. In Indiana, only homestead owners can vote on rental restrictions.

8. Confirm tax registration. Find out whether the platform collects state and local lodging taxes or whether you must, especially for direct bookings.

9. Call the planning or zoning office and ask how they enforce today. Get the answer by email.

10. Write down your fallback length of stay. Decide before you buy whether the property still works as a 30-plus-day rental if the nightly rules tighten.

Frequently Asked Questions

Sources

• Idaho Legislature: H0583 Short-Term Rentals (2026) — supports the 54-16 House vote, 23-12 Senate vote, March 16, 2026 signing and July 1, 2026 effective date figures in Idaho HB 583.

• Idaho House Bill No. 583 Text (2026) — supports the 17 listed restrictions, 5 allowed safety requirements and no-local-permit rule figures in Idaho HB 583.

• Indiana House Enrolled Act No. 1210 (2026) — supports the July 1, 2026 effective date, January 1, 2028 grace date and homestead-only HOA vote figures in Indiana HEA 1210.

• Governor Braun: 2026 Bill Watch — supports the March 12, 2026 signing date figure in Indiana HEA 1210.

• Pennsylvania General Assembly: House Bill 2303, 2025-2026 Regular Session — supports the March 19, 2026 committee referral, and sponsor list figures in Pennsylvania HB 2303.

• Pennsylvania House co-sponsorship memo: Compliance Regulations for Short-Term Rentals — supports the Joint State Government Commission figure of more than 53,000 active short-term rentals as of 2023.

Related Reading

• Verifying HOA Short-Term Rental Restrictions: A Playbook

• Single Point of Failure: Why Regulation Isn't the Problem

• How to Rent to Travel Nurses: The Mid-Term Rental Playbook