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  1. Home
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  5. Kentucky
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  7. Lexington

Lexington

Moderate
KentuckyUpdated Feb 10, 2026
Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Lexington-Fayette Urban County Government requires all short-term rentals to be licensed and inspected as of July 2023. Hosts must pay a total local transient tax of 8.5% and comply with strict occupancy limits based on bedroom count.

Restriction level

Severity 21
Classification
Moderate
21
Severity

Why this classification

  • Standard permit fee: $200
  • Tenants cannot host
  • Permit required
  • Reporting required
  • No night cap
  • No primary residence requirement

In plain English

What this means for you

To host an Airbnb in Lexington, you must register your property with the city-county government (LFUCG). You'll need to pay a $200 annual fee and have your home inspected to ensure it has proper fire alarms and parking. While platforms like Airbnb collect the 8.5% local tax for you, you still need to file monthly reports. You can host up to 12 people max, but the limit is usually lower depending on how many bedrooms your house has.

At a glance

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$200
Processing time14-30 days

7 things hosts often miss

Common compliance gaps
  1. 1You must have a general business license before you can apply for an STR license.
  2. 2Occupancy is strictly capped at 2 people per bedroom + 2 extra, never exceeding 12.
  3. 3Safety inspections are mandatory and include checks for fire extinguishers and evacuation maps.
  4. 4ADUs (Accessory Dwelling Units) may have additional restrictions or require the owner to live on-site.
  5. 5Parking must be provided off-street as shown on your site plan; street parking may not count toward requirements.
  6. 6Event hosting (weddings, parties) is strictly prohibited in residential STRs.
  7. 7Failing to register by the 2023 deadline or operating without a license results in a $125/day fine.

Regulation details

Sourced from official code
Eligibility7 rules
  • Lexington: You can have a co-host or property manager help manage your listing.
  • Lexington allows STRs in the following property types: Single-family homes, Condos, Apartments, Duplexes.
  • Lexington does NOT require the property to be a primary residence. Investment properties are allowed.
  • Lexington: UNHOSTED DENSITY LIMIT: You cannot get a new permit if there is another unhosted STR within 600 feet.
Requirements14 rules
  • Common mistakes and gotchas for STR hosts in Lexington: 1. UNHOSTED DENSITY LIMIT: You cannot get a new permit if there is another unhosted STR within 600 feet. 2. GUEST CAP REDUCED: As of Dec 2024, the maximum guest limit was reduced from 12 to 10 people. 3. NO PRIVATE EVENTS: You cannot host weddings, parties, or large commercial events at your STR. 4. ADVERTISING MANDATE: All listings must display the Local Registration Number and maximum occupancy. 5. ANNUAL RENEWAL: Licenses must be renewed by January 31st each year to avoid $500/day penalties. 6. ZONING PERMIT REQUIRED: Simply having a business license is not enough; you must also have a Zoning Compliance Permit.
Application process7 rules
  • Step-by-step guide to get an STR permit in Lexington: Step 1: Obtain Zoning Compliance Permit - Apply through the Division of Planning to ensure the property meets zoning standards for STR use. More info: https://www.lexingtonky.gov/permits Step 2: Apply for Business License - Obtain an Occupational License from the Division of Revenue. Cost: 100. More info: https://www.lexingtonky.gov/how-to-start-a-business-lexington Step 3: Register for STR Special Fees License - Complete the STR registration form and pay the annual $200 fee. Documents needed: Proof of Insurance, Zoning Permit. Cost: 200. More info: https://www.lexingtonky.gov/short-term-rentals
Fees & costs2 rules
  • Lexington charges a registration fee of $200 (annual). Extended/additional fee: $100 (For each additional unit beyond the first).
  • Lexington: ANNUAL RENEWAL: Licenses must be renewed by January 31st each year to avoid $500/day penalties.
Taxes2 rules
  • Lexington charges a Transient Room Tax of 8.5%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb remits the 8.5% local tax; hosts are responsible for the 1% state tax and 6% sales tax.
  • Kentucky has a state sales tax of 6% that applies to STR rentals.
Limits & restrictions6 rules
  • Lexington occupancy calculation: 2 per bedroom plus 4 additional guests, total cap of 10 (effective Dec 2024). Count your bedrooms to determine your max guest limit.
  • Lexington: GUEST CAP REDUCED: As of Dec 2024, the maximum guest limit was reduced from 12 to 10 people.
  • Lexington enforces quiet hours: 11:00 PM - 7:00 AM (No events allowed during these hours).
Safety requirements1 rule
  • Lexington requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Evacuation plan must be posted, Trash and recycling information must be provided to guests.
Penalties2 rules
  • Lexington enforces the following penalties for STR violations: First offense: Notice of violation. Second offense: Citations up to $500 per day. Daily fine: $500. Permit may be revoked for violations.
  • Lexington: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Exemptions2 rules
  • Lexington: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
  • Lexington exempts the following from STR regulations: long-term rentals (30+ days), extended stays, Hotels/Motels/B&Bs are exempt from STR specific fees as they fall under different licensing.

How to get permitted

Step-by-step guide for Lexington

0/4
steps completed
Step 1

Verify Zoning

Check the LFUCG zoning map to ensure your property is in a permitted zone and determine if a Conditional Use Permit (CUP) is required (typically for larger unhosted units in certain residential zones).

1-3 daysFree
Official resource
Step 2

Apply for Business License

All STR operators must have a general Lexington business license before applying for the STR-specific license.

5-7 daysFree
Documents needed
  • SSN or FEIN
  • Business ownership info
Official resource
Step 3

Submit STR Application

Complete the online application via the LFUCG portal, providing floor plans, site plans, and proof of insurance.

14 days$200
Documents needed
  • Floor plan
  • Site plan (parking)
  • Liability Insurance Certificate
Official resource
Step 4

Safety Inspection

Schedule and pass a life-safety inspection by the Division of Building Inspection.

7-14 daysFree

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes 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.

Researched & verified by Learn STR at GoStudioM

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