Carmel to cap number of single-family rental homes available within city limits

CARMEL, Ind. — During a meeting Monday evening, the Carmel City Council passed an ordinance that will cap the number of single-family rental homes available within city limits.

According to a synopsis included in the council’s Monday agenda, Ordinance D-2770-25 requires “owners of residential dwellings to register and obtain a permit before letting a residential dwelling and; limits the number of authorized residential dwelling permits to 10% of all homes within a subdivision or the City of Carmel as a whole.”

When put to a vote, the ordinance passed, 9-0.

After the ordinance was passed, MIBOR Realtor Association issued a statement expressing its concerns about Carmel’s new rules.

“MIBOR Realtor Association is deeply disappointed by the Carmel City Council’s decision to approve a rental registry and cap ordinance, seeing it as a serious misstep with far-reaching consequences for the community. Following the flawed example recently set by the City of Fishers, MIBOR is troubled by Carmel’s decision and stands in firm opposition to its implications. This action was taken without adequate consideration, sufficient data, or analysis to understand its long-term impact and represents a troubling step backward for housing policy in central Indiana.”

In a press release, MIBOR indicated that its representatives provided the city council with “comprehensive data and policy recommendations” related to Ordinance D-2770-25. MIBOR claimed that it presented “clear evidence of the unintended consequences this ordinance could have on housing affordability, neighborhood stability and community access.”

“In addition to the economic and social impacts, the council has failed to fully evaluate the administrative burden this ordinance places on city staff — creating new layers of regulation and enforcement without a realistic implementation plan,” MIBOR officials wrote in a press release. “Despite this setback, MIBOR remains committed to working with the council to find balanced, data-driven solutions that expand opportunity, protect property rights, and build an inclusive, thriving housing market.”

The Carmel City Council’s approval of Ordinance D-2770-25 comes just weeks after the City Fishers adopted a similar rental cap ordinance.

Much like the City of Carmel’s ordinance, The City of Fishers’ rules require property owners planning to rent their homes to obtain a permit. The City of Fishers’ ordinance stipulates that no more than 10% of single-family homes in a given subdivision be put up for rent.

In Fishers, failure to register a single-family rental property with the City could result in a $250 fine. Landlords who rent a single-family home in a Fishers subdivision that has already reached its 10% cap could be fined up to $7,500.

In Fishers, homeowners aiming to obtain rental permits from the City are required to provide names of the property owners, address of the property, an email address and a local contact for the property.

The Carmel City Council introduced its rental cap ordinance during an April meeting. The measure passed fewer than two months after it received its first reading.