Goshen, Indiana Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Goshen, IN?

Yes, short-term rentals are allowed in Goshen, Indiana. The city has explicitly recognized short-term rentals in their zoning ordinance, distinguishing them from "tourist homes" and referencing Indiana Code for their regulation. The Goshen Plan Commission updated the zoning ordinance in July 2023 to clarify that tourist homes do not include short-term rentals, which are regulated separately under state law.

What do Airbnb hosts actually earn in Goshen?

Goshen hosts earn a median $31,341/year with $154 ADR and 63% occupancy.

Top performers pull in $47,989+ per year.

See the full Goshen market breakdown

How to Start a Short-Term Rental Business in Goshen, IN

Step 1: Understand Zoning Compliance

Before establishing a short-term rental, verify that your property is in an appropriate zoning district. According to the 2023 zoning ordinance amendments, tourist homes (which are distinct from short-term rentals) are permitted in multiple residential districts including A-1, R-1, R-1S, R-2, and certain commercial districts.

Step 2: Verify Property Eligibility

Ensure your property meets all applicable zoning requirements for your specific district. Different zoning districts have varying restrictions on accessory uses, parking, and residential density.

Step 3: Review State Requirements

Since short-term rentals in Indiana are regulated by state law (Indiana Code), review state-level requirements that may apply to your operation.

Required Documents, Permits, Licenses, and Guidelines

City Level Requirements

Zoning Compliance: Ensure your property use aligns with local zoning ordinances
Building Permits: If modifications are needed, obtain required building permits from Goshen Building Department
Business Registration: Check if local business registration is required

State Level Requirements

Indiana State Regulations: Short-term rentals are regulated by Indiana Code (specific citation needs verification)
State Tax Registration: Indiana state tax requirements may apply for short-term rental income
Fire Safety Compliance: State fire safety regulations for rental properties

Specific Regulations for Short-Term Rentals

City-Level Regulations (Goshen, IN)

Zoning Classifications

The Goshen zoning ordinance has been updated to specifically address short-term rentals:

Definition Clarification: Tourist homes are defined as occupied dwellings providing sleeping rooms to transient guests, but specifically exclude short-term rentals as defined by Indiana Code
Distinction: Tourist homes and short-term rentals are treated as separate categories under city zoning law

Permitted Districts

Tourist homes (separate from short-term rentals) are permitted in:

A-1 Agricultural District
R-1 Residential District
R-1S Special Residential District
R-2 Residential District
Select commercial districts

Compliance Requirements

All uses must comply with district-specific requirements
Parking requirements must be met according to zoning district
Setback requirements apply based on property zoning
Residential character must be maintained

County-Level Regulations (Elkhart County)

The provided content does not contain specific Elkhart County short-term rental regulations. Properties within Goshen city limits are primarily governed by city ordinances, but county regulations may apply for properties in the extended metropolitan area.

State-Level Regulations (Indiana)

Indiana Code governs short-term rental operations statewide. Key state considerations include:

Registration or licensing requirements under state law
Tax obligations (state income tax, potentially local taxes)
Safety and building code compliance
Guest accommodation regulations

Contact Information for Local Authority

Primary Contact - Goshen Planning & Zoning Department

City Planner: Rhonda L. Yoder, AICP
Address: 204 East Jefferson Street, Suite 4, Goshen, IN 46528-3405
Phone: (574) 537-3815
Fax: (574) 533-8626
TDD: (574) 534-3185
Email: rhondayoder@goshencity.com
Website: www.goshenindiana.org

Building Department

For building permits and safety inspections: Contact through City Hall: (574) 533-8621
Building Department: Located within City Hall complex

Goshen Plan Commission

Meeting Location: Council Chambers, 111 E. Jefferson Street, Goshen, Indiana
Meeting Schedule: Regular meetings typically held monthly (verify current schedule)

Additional Resources

City Main Number: (574) 533-8621
City Website: www.goshenindiana.org for current ordinances and permit applications

Important Notes for STR Investors

Regulatory Distinction: Goshen's zoning ordinance specifically distinguishes between "tourist homes" and "short-term rentals," with the latter governed primarily by Indiana state law.
Zoning Compliance Critical: While short-term rentals are allowed, they must comply with all applicable zoning requirements for the property's district classification.
Recent Updates: The 2023 zoning ordinance amendments demonstrate the city's active management of short-term accommodation uses, indicating ongoing regulatory oversight.
State Law Primacy: Given the explicit reference to Indiana Code in the zoning definition, state-level regulations likely supersede local requirements for many operational aspects.
Professional Consultation Recommended: Due to the complexity of overlapping city, county, and state regulations, investors should consult with local legal and zoning professionals before proceeding.

Source Links

This guide is based on available public records and zoning ordinance amendments as of July 2023. Regulations may have changed. Investors should verify current requirements with local authorities before establishing operations.

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Ask the AI Advisor about Goshen

Goshen sits in the heart of northern Indiana's Elkhart County, a small city of roughly 34,000 residents that functions as a quiet cultural and educational hub within a region better known for its rolling farmland and Amish and Mennonite communities. The city carries a relaxed, small-town feel, with tree-lined streets, a walkable historic core, and a strong sense of community tied to Goshen College, a long-standing liberal arts institution affiliated with the Mennonite church. Goshen lies about 25 miles southeast of South Bend and roughly 110 miles east of Chicago, making it an easy drive from two very different metropolitan anchors. The surrounding Elkhart County area is widely recognized as the RV manufacturing capital of the United States, but for visitors, Goshen is best known as a gateway to Indiana's Amish Country and the cultural draws of the broader Michiana region.

Just minutes from the city center, downtown Goshen offers a compact historic district where late-19th-century brick storefronts have been repurposed into locally owned restaurants, coffee shops, and the Goshen Theater, a restored performing arts venue that hosts concerts, films, and community events. The downtown area anchors a number of annual festivals and farmers markets, giving the city a lively pace during warmer months without losing its easygoing character.

About 20 miles northeast of Goshen, the town of Shipshewana draws visitors from across the Midwest for its deep Amish and Mennonite heritage. The community is famous for its large seasonal flea market, which is among the largest in the region, as well as for its nearby Menno-Hof, an interpretive center that explores Anabaptist history. The drive from Goshen to Shipshewana takes roughly 30 minutes, making the city a convenient and more affordable base for travelers exploring the area.

Outdoor visitors will find the Pumpkinvine Nature Trail running through the countryside west and south of Goshen. This paved rail-trail stretches for about 17 miles, connecting Goshen to Middlebury and passing through farmland, small towns, and wooded stretches popular with cyclists, runners, and walkers. For those wanting a fuller day outdoors, the broader Elkhart County park system and the Elkhart River, which flows through town, offer additional options for paddling, fishing, and picnicking.

Goshen appeals to short-term rental investors because it sits in a region with steady year-round demand. Visitors come for college events, the surrounding Amish Country tourism circuit, the Shipshewana markets, and the trail system, while the proximity to South Bend and the greater Chicago orbit broadens the potential guest pool considerably. The combination of a walkable historic downtown, well-regarded schools and cultural institutions, and quick access to some of Indiana's most distinctive rural destinations gives the city a versatile appeal that few towns of its size can match.

Goshen, Indiana

Generally Investor Friendly

STR Regulations for Goshen, Indiana