On Monday, April 21, 2025, the Fishers City Council voted unanimously to implement the Home Rental Registration & Permitting Program. Implementation of the program will occur over the next several months, with enforcement beginning January 1, 2026. Property owners who have properties identified as rentals will receive written communication in the coming months.

About the Program

The Fishers City Council is in the process of considering an ordinance that will instate a rental registration and permitting program for long-term rentals for Fishers properties.

FALSE CLAIM #1: “Capping the number of single-family rentals in Fishers will reduce opportunities for young families looking to live in Fishers.”

TRUTH: Capping the number of single-family rentals in Fishers increases opportunities for young families looking for starter homes in Fishers.
Investors target low-middle income housing as investment properties to ensure an ROI. These homes would otherwise be available options for young families and first-time homebuyers.

FACT: The average assessed value of rental properties owned by institutional investors in Fishers is $298,873.
The average assessed value of all single-family rental properties in Fishers is $334,217, below the $370,200 median property value of a single-family home in Fishers.

If investors did not hold these properties, they could serve as achievable housing options for young families and first-time homebuyers looking to build a life in Fishers.

FALSE CLAIM #2: “The city does not want rental properties in Fishers.”

TRUTH: The City of Fishers has been intentional about supporting diverse housing options, including rental product into Fishers.
The City’s long-range planning policy, Fishers 2040, encourages further development of rental housing.

FACT: The city currently has nearly 10,500 rental units, including multifamily, built-for-rent, and single-family rentals. This is nearly one-third of the city’s total housing inventory dedicated to rental options. Furthermore, the proposed ordinance allows for growth among single-family rentals, which are currently 8% of total single-family units and will be able to grow to 10% under the proposed ordinance.

FALSE CLAIM #3: “The rental ordinance will drive up costs and will put a higher tax burden on current homeowners.”

TRUTH: While rental properties have the potential to generate more property tax income for political subdivisions (due to a higher property tax cap rate at 2% instead of 1%), the tax revenue discrepancy is nominal for the city.
Furthermore, the argument that any tax burden will be shifted onto owner-occupied homes is not accurate.

FALSE CLAIM #4: “The rental ordinance will control rental income or sale prices of single-family homes.”

TRUTH: The proposed ordinance does not restrict rental income or sale prices of rental homes. The proposed cap limits the concentration of single-family permits issued within each subdivision to 10%.

FALSE CLAIM #5: “The rental ordinance will eliminate the use of single-family rentals in Fishers.”

TRUTH: The proposed ordinance does not eliminate the use of single-family rentals; it limits the concentration of that use.

Why is the City proposing the program?

In 2022, the City of Fishers released a public report that found it imperative to the City’s long-term vibrancy to maintain high-quality rental stock as many older homes that are currently owner-occupied enter the rental market. Considering this trend along with the increasing numbers of out of state ownership (47% of all SF rentals) and institutional investor ownership (25% of all SF rentals), the City must be proactive to ensure quality stock within the single family rental market, while also ensuring single family homeownership opportunities exist for prospective buyers.

GOAL #1: Protecting Homeownership & Vibrant Neighborhoods

Homeowners have a vested interest in the vibrancy of their community and in building equity in their homes by investing in and improving their properties.
Investors are primarily focused on generating income from rental properties. While landlords may invest in maintenance and safety costs, their main priority is maintaining a profitable rental revenue stream, which does not include investments in vibrancy or quality of life improvements.

Homeowners, on average, spend $4,900 per year on home improvements (2015-2023). Investment and improvements in owner-occupied homes have continued to increase. In 2023, homeowners spent over $9,500 on average on home improvement projects alone. Furthermore, neighborhoods with high concentrations of rentals have less building permit activity, suggesting less investment overall
*Source: Improving America’s Housing 2025, Joint Center for Housing Studies of Harvard University
The Social Spillovers of Homeownership, University of Colorado + Clemson University, 2025

GOAL #2: Addresses current and future risks of oversaturation of single-family rentals in a small number of neighborhoods.

While rental housing options are critical to a diverse housing inventory, certain subdivisions within Fishers are oversaturated with rental units, which may contribute to decreased property values and a lack of neighborhood vibrancy.

– The city has 50 subdivisions with over 10% rentals.
– 17 subdivisions between 20-29% rentals
– 9 neighborhoods with +30% rentals

While institutional investors originally brought attention to this topic, they are just a fragment of the broader challenge. The proposed ordinance addresses the challenge of oversaturation of rentals in neighborhoods.

What’s Next?

The 2022 study recommended the city initiate a rental registration program to maintain a real-time inventory of rental homes with key property information to ensure code compliance and welfare of tenants.

The result of this recommendation and consideration of the trends detailed above, is a two-part policy:

Registration & Permitting Requirement for all single-family, long-term rentals in Fishers.
Rental Permit Cap that limits available permits to be issued to less than 10% of long-term rentals per subdivision. Legacy rentals (rentals established prior to the effective date of the ordinance) will not be subject to the 10% cap. See more on ‘What are Legacy Rentals?’ in the FAQ below.

Timeline

1/13/25 – City Council Work Session and initial introduction

2/24/25 – City Council First Reading

3/10/25 – Public Webinar Town Hall & Q&A

4/21/25 – City Council Second Reading and Public Hearing (Approved 9-0)

Process Timeline

Communication and outreach will occur to homeowners and HOAs will occur through the remainder of 2025.
Following approval of the ordinance, an initial notice will be mailed to property owners of suspected long-term rental properties.
120 days prior to enforcement date, a second notice will be mailed to property owners of suspected long-term rental properties.
90 days prior to enforcement date, a notice will be sent to long-term rental property owners
60 days prior to enforcement date, a notice will be sent to long-term rental property owners
30 days prior to enforcement date, a final notice will be sent to long-term rental property owners
An estimated implementation date of January 1, 2026, will coincide with enforcement beginning and all long-term rentals being registered.

How can I learn more?

Proposed Ordinance

1/13/25 – City Council Work Session Presentation (PDF)

2/24/25 – City Council First Reading Presentation (PDF) | Video

3/10/25 – Public Webinar Town Hall Recording (YouTube) | Q&A (PDF)

Rental Registration & Permitting FAQ’s

Why can’t HOAs manage this at the subdivision level?

HOA covenant changes can be difficult to modify due to strict voting requirements. Additionally, many HOAs lack the resources to enforce these regulations.

Would this ordinance prevent my HOA from implementing more stringent regulations?

No, this serves as a baseline. HOAs may choose to implement stricter regulations.

How much will it cost to register a long-term rental property?

There will be no cost to register a long-term rental property through this program.

Does this include long-term rentals for condos and townhouses?

Yes, the rental registration and permitting will apply to any single-family home as well as condos and townhouses.

Does this ordinance apply to short-term rentals?

No, short term rentals are not regulated by the proposed Chapter 163 of the Fishers Code of Ordinances. Please refer to City of Fishers Unified Development Ordinance Section 5.4.6(D) for short term rentals.

What are Legacy Rentals?

Under the proposed ordinance, Legacy Rentals are rental properties existing prior to the enforcement date of January 1st, 2026. Legacy Rentals registering prior to January 1st, 2026 will be issued a permit, regardless of whether they are in a subdivision with over 10% rentals. Subdivisions over 10% rentals will not be issued any additional rental permits, until the rental percentage drops below 10% in that neighborhood. Permits of Legacy Rentals are valid until ownership changeover of the property occurs, or until a violation warranting permit revocation occurs. See more on permit revocation in the FAQ.

Can permits be revoked?

Yes. Under the proposed ordinance, permits may be revoked for violations to the Title XV of the Fishers Municipal Code, delinquency of Fishers Utilities invoices, or provisions of city ordinances that place undue burden on public safety resources (i.e. more than seven (7) calls for service to public safety). Permit revocation will be handled by the City of Fishers City Court. See permit criteria for more information.

Do permits expire?

Per state statute, rental permits may not expire until there is a changeover of ownership or there is a violation of the City’s enforceable ordinance or codes. See ‘Can permits be revoked?’ for more information.

Are there any exceptions to this ordinance?

Yes. The scenarios below are proposed exceptions to this ordinance. Properties or owners in these scenarios will not have to register or be subject to the 10% cap. If contacted by the city as a suspected rental, property owners in these situations will fill out the exemption form provided.

– Renting to Family Members or Legal Dependents
-Job Relocation
-Deployed Military
-Selling the Property will Cause Undue Burden (e.g. death, divorce in last year)
– Failure to Sell the Property after 6 Months

Does the ordinance include fines for non-compliance?

Yes. The proposed ordinance includes the following:

Failing to Register: $250 Fine

Operating above 10% cap without a permit:
First Violation: $1000 Fine
Second & Subsequent Violation: Not Less than $5,000 nor more than $7,500

Will this ordinance eliminate existing single family rentals in Fishers?

NO. Existing family rental units will be grandfathered into the proposed ordinance, exempting existing rentals from the 10% cap (until there is a change over of ownership). See Legacy Rentals FAQ. Furthermore, the proposed ordinance allows for growth in single family rental units. Single family rental units currently make up 8% of the single family housing stock in Fishers. The proposed ordinance allows for 10% single family rentals per subdivision in Fishers.