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Washington, IN

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STR Regulations for Washington, Indiana

  • Overview: Are short-term rentals allowed in Washington, Indiana? Short-term rentals (STRs) are permitted in Washington, Indiana, but operators must comply with all applicable state, county, and municipal requirements. Indiana state law (HB 1035, 2018) defines “short-term rental” and clarifies that this activity is permissible, provided the operator follows the state’s alcohol, drug, and safety restrictions (IC 7.1-1-3). State law does not impose a single statewide licensing or permit scheme for STRs. Local governments may add their own regulations; if they do, those govern. If Washington or Daviess County has not adopted city-specific STR rules, Indiana’s general laws apply.

  • How to start a short-term rental business in Washington, Indiana

  1. Compliance scope: Confirm property zoning/land use and any HOA or condo restrictions that may limit or prohibit STRs. 2) Business registration: Create a legal entity (e.g., LLC) and obtain any required state/county identifiers, as appropriate. 3) Tax setup: Establish registration for state and local taxes (e.g., state gross income/innkeeper’s taxes, local innkeeper’s tax if applicable) and set up systems to collect, report, and remit. 4) Insurance and risk: Secure liability coverage appropriate for transient lodging; consider landlord/property protection coverage beyond basic liability if you also lease long-term. 5) Operational readiness: Develop guest screening and house rules, check-in processes, safety plans (fire, emergency), and local occupancy/noise/parking compliance if applicable. 6) Ongoing compliance: Maintain records (reservations, payments, taxes, inspections), renew any local registrations or business licenses annually, and monitor for state/local updates.
  • Required documents, permits, licenses, and guidelines At the state level, Indiana does not require a single statewide STR license. However, based on the 2018 Indiana alcohol/safety code amendment for STRs (HB 1035), operators must follow IC 7.1-1-3 restrictions on alcohol, drug, and safety provisions. You may need:
  • A state business registration/identifier (for tax purposes).
  • State and local tax registrations: Indiana Department of Revenue for state taxes and the Daviess County Treasurer for any local innkeeper’s tax.
  • If the city or county later adopts ordinances, expect requirements such as a local STR registration/permit, safety inspections, posting requirements (e.g., emergency contact, occupancy limits, fire exit information), and compliance with noise, parking, and nuisance rules.

Specific regulations: Indiana state law, Daviess County, and Washington

  • Indiana statutes relevant to STRs:

    • HB 1035 (2018) amended Indiana Code 7.1-1-3 to define “short-term rental” and to require STR operators to comply with the same alcohol, drug, and safety rules that apply to traditional lodging. This established STRs as a recognized lodging use under Indiana law. [IMPORTANT] Indiana state law is the controlling legal framework where local ordinances have not been enacted. Investors must confirm the most current text (IC 7.1-1-3).
    • County/local taxes: Daviess County (and Washington) may levy an innkeeper’s tax; collection, reporting, and remittance are required in addition to state taxes. Registration and filing are administered by the Daviess County Treasurer’s Office and the Indiana Department of Revenue (state-level).
    • State health and building codes: The Indiana Department of Health governs lodging sanitation and safety; ensure compliance with fire safety, emergency access, and sanitation standards. The Indiana Department of Homeland Security oversees building/fire codes; confirm compliance with the Indiana Fire Code as adopted locally.

  • Daviess County level: No county-specific STR licensing or permit program was identified in the provided materials. In the absence of county ordinances, Indiana state law applies.

  • City of Washington level: No city-specific STR ordinance or permitting guidance was identified in the provided materials. In the absence of municipal rules, Indiana state law applies. Operators should still follow the Indiana Code 7.1-1-3 requirements and any future local ordinances that may be adopted.

Important disclaimer: The provided search results include extensive Washington (state) laws and local rules (RCW 64.37) and do not include Daviess County or Washington, Indiana specific ordinances. This guide therefore applies Indiana state-level requirements and flags any city/county specifics as unknown until verified.

Contact information (verification required)

  • Washington City Hall: Website and phone/email not identified in the provided results. Call Daviess County government or the Indiana Department of Revenue’s general line to ask for Washington City Hall contact details.
  • Daviess County (County Treasurer for local innkeeper’s tax): Website and phone/email not identified in the provided results. Contact Indiana Department of Revenue or the Daviess County general line for the Treasurer’s Office information.
  • Indiana Department of Revenue (state-level tax registration): www.in.gov/dor/ (no phone/email provided in the supplied content).

Links to source pages (available in the provided content)

Notes and next steps

  • Given the lack of Washington-specific local ordinances in the provided content, confirm with the City of Washington and Daviess County whether any local STR permits, inspections, safety postings, or limits (occupancy/noise/parking) are required.
  • Verify county/local innkeeper’s tax rates and filing cadence with the Daviess County Treasurer’s Office; set up sales/use tax registrations and reporting with the Indiana Department of Revenue.
  • Implement internal policies to comply with IC 7.1-1-3 alcohol/drug/safety rules; consider periodic inspections and safety audits (e.g., fire extinguishers, smoke detectors, egress plans).
  • Monitor for future city or county ordinances in Washington, Indiana, and update operations accordingly.

What do Airbnb hosts actually earn in Washington?

Washington hosts earn a median $23,275/year with $147 ADR and 52% occupancy.

Top performers pull in $31,367+ per year.

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Washington

Market Saturation Score

036912
Mild Saturation
3/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Washington

Overview of Washington

Washington is a small city in southwestern Indiana, serving as the county seat of Daviess County. With a population of approximately 11,000-12,000 residents, it functions as a regional hub for the surrounding agricultural area. The city has a quiet, small-town Midwestern character, anchored by a historic downtown and a courthouse square, and serves as a service center for the farming communities of the broader region. It sits roughly 120 miles southwest of Indianapolis and about 50-60 miles northeast of Evansville, placing it between two larger Indiana cities and within easy reach of the broader southwestern part of the state.

Just outside the city, West Boggs Park offers a popular outdoor escape with a sizeable lake suitable for fishing and boating, along with campgrounds, picnic shelters, and walking trails. The park is only a short drive from downtown Washington and serves as a year-round destination for families and outdoor enthusiasts visiting the area. Its combination of water access, camping, and day-use amenities makes it one of the most-visited natural spots in the county.

The surrounding Daviess County is home to established Amish communities, and the rural roads around Washington offer scenic drives past farms, produce stands, and craft shops. Visitors interested in the region's agricultural heritage often explore these backroads, where handmade furniture, baked goods, and seasonal produce are commonly available at small roadside businesses. The pace and scale of life here reflect Indiana's rural roots and give travelers a sense of the area's farming traditions.

Downtown Washington is anchored by the Daviess County Courthouse and features a compact collection of locally owned shops, cafes, and restaurants. Its historic architecture and small-scale streetscape give the area a traditional, walkable feel that contrasts with the more commercialized corridors found in larger Indiana cities, and it remains a focal point for community events throughout the year.

A short drive from the city brings visitors to Glendale Fish and Wildlife Area, which covers several thousand acres of public land managed for hunting, fishing, hiking, and wildlife observation. Together with West Boggs Park, this property provides the closest major outdoor recreation options to Washington and offers a quieter alternative to Indiana's better-known state parks.

As a base for short-term rentals, Washington appeals to travelers seeking an unhurried, rural Indiana experience with convenient access to the outdoors. Its central position within Daviess County, its proximity to natural areas, and its location along the route between Indianapolis and Evansville give the city a steady draw from road trippers, family visitors, and outdoor recreationists looking for a slower-paced alternative to the state's larger tourist destinations.

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