New Orleans LA Short Term Rental Regulations: A Complete Guide For Airbnb Hosts

Thinking About Starting an Airbnb in New Orleans?

🔥 Join 150,000+ real estate investors getting the most unique & profitable short-term rental investment opportunities delivered to your inbox, 6x/week. Subscribe Now

Disclaimer: This article is for informational purposes only and not legal advice. Regulations may have changed since publication. Always check with local authorities and consult a legal professional before making investment decisions.

Introduction to Short-Term Rentals in New Orleans

New Orleans presents one of the most complex and heavily regulated short-term rental markets in the United States. Known for its vibrant culture, world-class cuisine, and year-round festival scene, the Crescent City attracts millions of visitors annually, creating substantial demand for vacation accommodations. However, with opportunity comes unprecedented regulatory challenges.

The city has implemented what many industry experts consider the most restrictive short-term rental regulations in the country. These stringent rules emerged from years of tension between tourism economics and housing affordability concerns, culminating in a comprehensive regulatory framework that significantly limits STR operations in residential neighborhoods.

Currently, there are approximately 1,350 legally permitted short-term rental properties, but over 7,000 active Airbnb listings in New Orleans, revealing thousands of illegal operations. This massive compliance gap has created an enforcement crisis and ongoing legal battles that continue to shape the market.

For investors considering New Orleans, understanding these regulations isn’t just important—it’s absolutely critical. Operating without proper permits can result in fines ranging from $500 per day up to $15,000, with code enforcement able to shut off utilities for continued non-compliance. This guide breaks down everything you need to know about navigating New Orleans’ challenging STR landscape in 2025.

Current Short-Term Rental Permit Requirements in New Orleans

New Orleans operates a highly restrictive permit system with two primary license types, each with specific requirements and limitations:

Non-Commercial Short-Term Rental (NSTR) Permits

For properties in residential zones, operators must apply for Non-Commercial Short-Term Rental Permits. Key requirements include:

1. Quarterly Lottery System: Applications are only accepted during specified periods: June 1-7, September 1-7, and December 1-7, with lotteries held quarterly.
2. Owner/Operator Residency Requirement: The property owner or designated on-site operator must live on the property as their primary residence.
3. One Permit Per Person: Each owner/operator is limited to one non-commercial short-term rental permit.
4. Density Limitations: Maximum of three short-term rental permits per city square (four-block area).
5. Permit Fees: Fees are prorated based on when permits are issued during the year.

Commercial Short-Term Rental (CSTR) Permits

For properties in non-residential zones:

1. Higher Permit Fee: $1,000 application fee
2. Multiple Property Ownership: No limit to how many CSTR licenses a host can obtain
3. Occupancy Limits: Up to 5 guest bedrooms accommodating up to 10 guests maximum
4. Building Restrictions: Allowed only in buildings where fewer than 25% of units are licensed for STRs

Application Process

Applications must be submitted through the city’s website with complete documentation, including proof of ownership, homestead exemption (if applicable), and completion of required STR owner training. All fees must be paid within 5 calendar days of lottery selection, or the permit is forfeited to the next selected applicant.

Zoning Regulations for STRs in New Orleans

New Orleans’ zoning framework creates distinct rules for different property types:

Residential Zone Restrictions

Residential zones often consist of single-family homes and apartments where short-term rentals are more restricted to preserve the local community character. Key limitations include:

• NSTR permits required for all residential STR operations
• Primary residence requirement for owner/operator
• Density caps of three permits per city square
• Whole-home STRs prohibited without on-site operator

Non-Residential Zone Permissions

Non-residential zones allow different operational structures with CSTR permits, offering more flexibility for investors but requiring higher fees and commercial compliance standards.

Historic District Considerations

Short-term rentals remain illegal in most of the French Quarter, and vacation rentals in the Garden District are banned. These historic preservation restrictions significantly limit available inventory in the city’s most tourist-heavy areas.

Required Documentation for New Orleans Short-Term Rentals

A complete application requires extensive documentation to ensure compliance:

1. Ownership Documentation: Proof of property ownership or landlord permission
2. Primary Residence Verification: Homestead exemption or operator residency proof
3. Safety Compliance: Noise abatement plan including noise monitoring device (except for NSTRs)
4. Building Permits: No outstanding electrical, mechanical, or building permit violations
5. Training Certificate: Proof of completion of STR Owner training class
6. Contact Information: Local contact person for emergency response
7. Insurance Documentation: Liability coverage meeting city requirements
8. Zoning Verification: Verification of proper zoning and addressing status

The complexity of documentation requirements has made professional assistance increasingly valuable for navigating the permit process successfully.

New Orleans Short-Term Rental Taxes

New Orleans imposes one of the most complex tax structures for short-term rentals in the country:

City Taxes

New Orleans Sales Tax: 5% of the listing price including any cleaning fee for reservations 59 nights and shorter

New Orleans Hotel Occupancy Privilege Tax: $0.50 per night

STR Occupancy Fee: $12 nightly fee on applicable bookings for reservations 29 nights and shorter

STR Equalization Occupancy Tax: 6.75% of the listing price including any cleaning fee for reservations 29 nights and shorter

State and Regional Taxes

• Louisiana Sales Tax: 7% of gross rental receipts
• Stadium and Exposition District Hotel Occupancy Tax: 4% for certain properties
• Ernest N. Morial New Orleans Exhibition Hall Authority Tax: 3% plus $0.50-$2.00 per night

Tax Collection and Compliance

Airbnb collects both city and state taxes on behalf of its New Orleans hosts. Vrbo also collects city taxes for hosts in New Orleans but doesn’t collect Louisiana state taxes. However, hosts must still register and file lodging tax returns with tax authorities even if taxes are being collected on their behalf by a marketplace.

The cumulative tax burden can exceed 25% of gross rental receipts, making accurate financial modeling essential for investment viability.

Safety Requirements and Inspections

Safety procedures ensure guests’ well-being, including availability of first aid kits, functioning smoke detectors, and carbon monoxide detectors. Additional requirements include:

Mandatory Safety Equipment

• Smoke detectors on each level and in bedrooms
• Carbon monoxide detectors near fuel-burning appliances
• Fire extinguishers accessible throughout property
• Emergency contact information provided to guests
• First aid kits available
• Clear emergency exit signage

Noise Monitoring Requirements

Operators must equip their rentals with noise monitoring devices to comply with the city’s noise ordinance. This requirement reflects the city’s focus on minimizing neighbor disruption.

Inspection Process

The Department of Safety and Permits conducts inspections and mediates between the community and rental operators, with enforcement teams monitoring compliance and investigating complaints.

Platform Verification Requirements Starting March 2025

A significant regulatory change takes effect in March 2025: platforms like Airbnb and Vrbo must verify permits before allowing bookings, with potential fines of $1,000 per illegal listing per day.

Once operational, platforms must verify city-issued STR permits before bookings, reverify listings regularly, and provide monthly reports to the city. This represents a major shift in enforcement strategy, moving from reactive complaint-based enforcement to proactive platform-level verification.

Enforcement of STR Rules in New Orleans

New Orleans City Councilman Eugene Green says the city is working to hire more inspectors to govern short-term rentals, signaling increased enforcement capabilities.

Current Enforcement Mechanisms

• Dedicated STR enforcement team within Safety and Permits
• Enforcement teams monitor compliance and investigate complaints using stringent measures
• Coordination with platforms for listing monitoring
• Violation reporting system allowing neighbor complaints
• Rapid response capabilities, with Safety and Permits vehicles arriving at violating properties within hours of complaints

Common Violations and Penalties

• Operating without valid permits
• Exceeding occupancy limits
• Noise disturbances and safety violations
• Tax collection failures
• Missing required safety equipment

Penalties range from fines to suspension or revocation of permits, with daily fines ranging from $500 to $15,000.

New Orleans vs. Other Louisiana Markets: Regulation Comparison

New Orleans is known for having some of the tightest STR restrictions and most aggressive enforcement efforts in Louisiana. Key differences include:

New Orleans

• Extremely restrictive permit caps
• Lottery-based allocation system
• Mandatory on-site operator residency
• Complex multi-layered tax structure
• Aggressive enforcement with substantial penalties

Other Louisiana Markets

Enforcement in other parts of Louisiana, like Shreveport, has been more limited, with some hosts operating without permits and facing no consequences. However, many expect cities will ramp up enforcement efforts similar to New Orleans as the STR industry matures.

The regulatory environment in New Orleans stands as one of the most challenging in the state, requiring significantly more compliance investment than other Louisiana markets.

Ongoing Legal Challenges and Future Outlook

The regulatory landscape remains in flux due to ongoing litigation:

Current Lawsuits

Airbnb and several local property owners filed a lawsuit against the city on February 14, arguing regulations unconstitutionally infringe on property owners’ rights. Plaintiffs claim regulations violate the Takings Clauses of the U.S. and Louisiana Constitutions.

On February 28, a federal judge issued a ruling that upheld short-term rental regulations enacted by the City of New Orleans in 2023, but the decision will likely be appealed by the plaintiffs.

Potential Regulatory Changes

Morrell has said on the record that if courts overturn the city’s rules, he would move to ban short-term rentals entirely. The City Council recently placed a moratorium on special exception permits for a year amid controversy over their administration.

Market Impact Considerations

The ongoing legal uncertainty creates additional investment risk. One New Orleans host noted the STR market is “unstable” and shared concerns about potentially having to cancel reservations if new restrictions pass.

How to Start a Short-Term Rental Business in New Orleans

Given the regulatory complexity, success requires meticulous planning:

Step 1: Comprehensive Regulatory Research

• Verify property eligibility for STR permits
• Confirm availability within density limitations
• Research lottery timing and requirements
• Assess total compliance costs

Step 2: Financial Modeling with Full Tax Burden

• Calculate cumulative tax rates exceeding 25%
• Factor in permit fees and compliance costs
• Model potential permit acquisition delays
• Assess enforcement risk factors

Step 3: Lottery Application Process

• Submit applications during quarterly windows: June 1-7, September 1-7, December 1-7
• Complete mandatory training requirements
• Prepare all documentation thoroughly
• Pay fees within 5 days of selection or forfeit permit

Step 4: Compliance Infrastructure

• Install required safety equipment
• Implement noise monitoring systems
• Establish local contact protocols
• Set up tax collection systems

Step 5: Ongoing Management

• Monitor regulatory changes continuously
• Maintain perfect compliance to avoid penalties
• Prepare for increased enforcement
• Stay informed about litigation outcomes

Advice from New Orleans STR Professionals

Industry professionals emphasize the critical importance of legal compliance:

“The regulatory environment in New Orleans requires treating STR investment like a heavily regulated business rather than passive real estate investment. Professional management and legal compliance are non-negotiable.” – Local STR management company

“We’ve seen investors lose tens of thousands in fines and legal fees by trying to operate without proper permits. The enforcement is real and the penalties are severe.” – New Orleans real estate attorney

The consensus among experienced operators is that success requires professional-level compliance infrastructure and ongoing legal monitoring.

Who to Contact About New Orleans STR Regulations

For official information and assistance:

New Orleans Short Term Rental Administration

• Email: STR@nola.gov
• Phone: (504) 658-7144
• Website: nola.gov/str

New Orleans Department of Safety and Permits

• Phone: (504) 658-7200
• Website: nola.gov/safety-and-permits

Louisiana Department of Revenue

• Phone: (855) 307-3893
• Website: revenue.louisiana.gov

New Orleans City Council

• Phone: (504) 658-1030
• Website: nola.gov/city-council

Future Outlook for New Orleans STR Regulations

Several factors will shape the market going forward:

• Legal Resolution: The future of short-term rentals in New Orleans could hinge on the outcome of legal challenges
• Platform Enforcement: March 2025 verification requirements will significantly impact illegal operations
• State Legislation: Louisiana legislators have prefiled 13 bills for the upcoming spring session, though none currently address local short-term rental regulations
• Enforcement Expansion: Continued hiring of additional inspectors for STR enforcement

The regulatory environment is likely to become more restrictive rather than more permissive, making early compliance and professional management increasingly important for market participants.

Ready to Navigate New Orleans’ Complex STR Market?

New Orleans represents one of the most challenging but potentially rewarding short-term rental markets in the United States. Success requires treating STR investment as a heavily regulated business venture rather than passive real estate investment. With proper compliance, professional management, and realistic financial modeling, investors can still find opportunities in this complex market.

🔥 Ready to find the best STR deals in New Orleans and beyond? Subscribe to The Offer Sheet and join 150,000+ investors getting curated, profitable short-term rental opportunities delivered directly to your inbox 6x/week.

⭐️ Already a subscriber? Upgrade to Pro to get access to 40+ properties daily, exclusive off-market deals, and premium analysis tools to maximize your STR investment returns.

Remember: Always consult with local legal and tax professionals before making investment decisions.