What zoning rules apply to STRs in Greencastle?

Residential zones (R-1, R-2, R-3) require a Special Exception, which is not guaranteed and requires a public hearing.

What zoning rules apply to STRs in Greencastle?

Indiana state law (HEA 1035) prevents a total ban but allows significant zoning hurdles for non-owner occupied properties.

What should Greencastle hosts know about using a property as an?

Using a property as an STR may disqualify it from the Indiana Homestead property tax deduction if rented for more than 14 days/year.

What are the key requirements for Greencastle hosts?

Property must be in a 'legally built dwelling'—RVs, tents, or non-habitable structures are generally prohibited as STRs.

Greencastle, IN Short-Term Rental Regulations Guide

Summary

Greencastle requires short-term rental operators to obtain a permit and comply with specific zoning standards, including a special exception requirement for most residential districts.

Restriction Level

⚠️

Moderate

Score: 11 (restrictive)

Why this classification:

•Standard permit fee: $150
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To run an Airbnb or VRBO in Greencastle, you must register your property with the City Planning Department. If your house is in a residential neighborhood (like R-1 or R-2), you will likely need to go through a public hearing process to get a 'special exception' before you can host. You are also responsible for collecting and paying 12% in total taxes, which includes Indiana state sales tax and the Putnam County innkeeper's tax.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$150

Processing Time

4-8 weeks

4 Things Hosts Often Miss

1.Residential zones (R-1, R-2, R-3) require a Special Exception, which is not guaranteed and requires a public hearing.
2.Indiana state law (HEA 1035) prevents a total ban but allows significant zoning hurdles for non-owner occupied properties.
3.Using a property as an STR may disqualify it from the Indiana Homestead property tax deduction if rented for more than 14 days/year.
4.Property must be in a 'legally built dwelling'—RVs, tents, or non-habitable structures are generally prohibited as STRs.

Regulation Details

Eligibility(5)

•Greencastle: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Greencastle: You can have a co-host or property manager help manage your listing.
•Greencastle allows STRs in the following property types: Single Family, Multi-family, Condo, Townhouse.

Requirements(11)

•Greencastle STR warning: Using a property as an STR may disqualify it from the Indiana Homestead property tax deduction if rented for more than 14 days/year.
•Greencastle: You must display your permit/registration number on your Airbnb listing.

Application Process(8)

•Greencastle STR permit - Step 1: Zoning Verification. Contact the Greencastle Planning Department to verify the zoning of your property and determine if a Special Exception is required. Time: 1-3 days.
•Greencastle extended permit requirement: Indiana law IC 36-1-24-13 caps initial registration fees at $150.

Fees & Costs(1)

•Greencastle charges a registration fee of $150 (one_time).

Taxes(4)

•Indiana has a state sales tax of 0.07% that applies to STR rentals.
•Greencastle charges a Putnam County Innkeeper's Tax of 0.05%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO generally collect and remit the Indiana Sales Tax and Putnam County Innkeeper's Tax automatically.

Limits & Restrictions(3)

•Greencastle enforces quiet hours: 10pm-7am.
•Greencastle limits stays to a maximum of 30 nights.
•Greencastle occupancy calculation: Subject to Building Code and Life Safety standards. Count your bedrooms to determine your max guest limit.

Safety Requirements(1)

•Greencastle requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Must comply with IC 36-1-24-11 regarding safety standards, Egress requirements per building code.

Penalties(2)

•Greencastle enforces the following penalties for STR violations: First offense: Warning/Fine. Second offense: Fine. Third offense: Permit Revocation. Permit may be revoked for violations.
•Greencastle: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Greencastle: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Greencastle exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Greencastle

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(5)

Requirements(11)

Application Process(8)

Fees & Costs(1)

Taxes(4)

Limits & Restrictions(3)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Greencastle

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Greencastle?

2What is the TOT tax rate in Greencastle?

3Are there specific zoning requirements in Greencastle?

4What are the penalties for non-compliance in Greencastle?

Related Content

Other Indiana Markets

South Bend

Bloomington

Terre Haute

Muncie