Short-term rentals in South Bend, Indiana: the 2027 rules

South Bend's visitor economy is built around the University of Notre Dame. Home football weekends are the peak of the year, followed by commencement, reunions, move-in and a busy calendar of campus events. The hospitals and a growing tech and manufacturing base add weekday business. Rentals are mostly older single-family homes near campus and in neighborhoods such as Northeast, Howard Park and East Bank, where demand concentrates.

New rules adopted in September 2026

South Bend has now used the room Indiana law gives it. In mid-September 2026 the Common Council passed two ordinances, both effective January 1, 2027:

• Registration for every short-term rental, including a contact available 24 hours a day to deal with problems.
• A zoning special exception for rentals, with owner-occupied homes exempt, as state law requires.

Council members said existing rentals would be grandfathered. The local Realtors association opposed the zoning requirement, while some residents asked for stricter rules. Fees and the detailed procedure were not yet published when we checked.

What the state framework guarantees

Indiana's statute limits how far the city can go. A special exception may not be used to prohibit or unreasonably restrict rentals, and a denial can be appealed. A city permit, if South Bend attaches one to registration, lasts a year, costs no more than $150 initially and cannot carry a renewal fee. Three citations at one property within a calendar year can lead to revocation for up to a year.

Taxes

Guests pay Indiana sales tax and the St. Joseph County innkeeper's tax. Platforms usually collect on their own bookings; direct bookings need your own registration.

What this means for buyers

• If you already operate before 2027, document it: listings, bookings and tax filings will matter for grandfathering.
• If you are buying, assume a new investment rental will need a special exception from 2027 and budget time for a hearing.
• Check whether grandfathered status survives a sale; the text should be read closely once published.
• Football weekends reward strict house rules; a citation record hurts at renewal and at any hearing.

Our advice

South Bend is moving from open to managed. Owners who register early and run quiet houses will be in the strongest position. We study every request and tell you honestly whether and how we can help.