
The Indiana General Assembly has approved legislation that would prohibit cities and towns from enforcing rental home caps — a move that directly affects Fishers, which adopted a 10 percent cap on single-family rentals in certain subdivisions last year.
The measure, House Bill 1210, now heads to the governor for signature.
If signed into law, the bill would bar local governments from adopting or enforcing ordinances, policies or regulations that “prohibit or restrict” a homeowner from renting a residential property — or that have the effect of doing so. That language is widely viewed as preempting municipal rental-cap ordinances like the one in Fishers.
What it means for Fishers
Fishers’ ordinance limits rental properties in certain neighborhoods to 10 percent of homes within a subdivision. The stated goal was to maintain owner-occupied stability while addressing concerns about investor-owned properties.
Under HB 1210, cities would no longer be allowed to impose that type of percentage cap. If the governor signs the bill, Fishers would likely be required to stop enforcing its rental-cap framework.
The legislation does allow local governments to continue enforcing:
• Building and fire codes
• Health and safety standards
• Reasonable occupancy limits
• Registration and inspection programs — so long as those measures do not function as a de facto rental cap
In other words, Fishers could still require rental registration or inspections, but it could not limit the number of homes in a neighborhood that may be rented.
The law includes a delayed compliance provision for ordinances adopted before January 1, 2026, but ultimately requires local governments to bring those ordinances into compliance.
What the bill does not change
Importantly, the legislation applies only to local governments — not to homeowners associations.
HOAs in Fishers may still adopt or enforce covenants restricting rentals within their communities.
However, the conference committee report for HEA 1210 adds a significant limitation on who can vote on those issues.
Under new language on page 218 of the report:
Beginning after the law takes effect, only HOA members who use their property as a homestead — as defined under Indiana’s property tax homestead deduction statute (IC 6-1.1-12-37) — may vote on:
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A prohibition or restriction on an owner using a residential property as a rental property, or
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Any restriction regarding the use of property as a rental property.
In practical terms, “homestead” status generally means the property is the owner’s primary residence and qualifies for Indiana’s homestead property tax deduction.
What that means
In Fishers subdivisions governed by HOAs:
• Investor-owners who do not live in the home would not be allowed to vote on rental-cap amendments or new rental restrictions.
• Only resident homeowners who claim the property as their primary residence could cast votes on rental policy questions.
The law also restricts eligibility for HOA board service in the same manner, meaning board members must use the property as their homestead.
There is one exception: developers are not subject to this limitation while they still own lots within the subdivision. The statute defines a developer as a person or entity engaged in acquiring and improving land for residential construction and sale or lease.
Broader housing policy shift
HB 1210 is part of a broader package of housing-related legislation aimed at increasing housing supply and reducing costs statewide. Lawmakers argued that local rental caps limit property rights and restrict housing availability.
Supporters say the bill protects homeowners’ rights to use their property as they see fit. Critics argue it strips cities like Fishers of local control to address neighborhood concerns.
If signed, the law would represent a significant shift in housing policy for Fishers, moving rental regulation authority away from City Hall and leaving most rental limitation decisions to private HOAs and the market itself.
The effective date of the legislation is July 1, 2026, if signed into law by Governor Mike Braun.
(Note: this story was revised to include language in the final conference report dealing with HOA governance and developers)