Policies & Legal

What is the New Orleans Short-Term Rental Ordinance?

Updated 2026-05-28

The New Orleans Short-Term Rental (STR) Ordinance is the formal collection of city laws designed to regulate properties rented for periods of less than 30 days. These regulations establish different permit types based on zoning and residency, set limits on the number and density of rentals, and enforce health and safety standards.

The ordinance's primary purpose is to balance the economic opportunities of tourism with the need to preserve residential neighborhood character and maintain long-term housing availability for local residents.

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How it works

To operate legally, a host must first determine their property's eligibility based on its zoning district and whether it qualifies for a homestead exemption. The host then applies for a specific type of STR permit (e.g., Residential or Commercial) through the city's Department of Safety and Permits, a process that requires submitting documentation, paying fees, and undergoing property inspections.

Once issued, the STR permit number must be prominently displayed on all online advertisements and listings. Operators are also responsible for collecting and remitting all applicable hotel, motel, and miscellaneous occupancy taxes to the city and state.

Why it matters

Compliance with the New Orleans Short-Term Rental Ordinance is a legal necessity for all hosts in the city. Operating without the proper permits or in violation of the rules can result in substantial daily fines, permit revocation, and other legal penalties.

These regulations directly influence a host's business strategy, affecting which properties are eligible to operate as rentals, how many guests can be accommodated, and overall profitability. Adherence to the ordinance is essential for running a sustainable and lawful vacation rental business in New Orleans.

Examples

  • A homeowner with a valid homestead exemption in an eligible residential zone secures a Residential STR (RSTR) permit to rent out a spare bedroom in her home.
  • An investor operating in a designated commercial district obtains a Commercial STR (CSTR) permit, which allows them to rent the entire non-owner-occupied unit to travelers year-round.
  • A property manager receives a notice of violation and a fine for advertising a downtown condo on Vrbo without including the mandatory City of New Orleans STR permit number.
  • During the annual license renewal process, a host ensures their property has passed its fire safety inspection and has paid all outstanding lodging and sales taxes to remain in compliance.

Frequently asked questions

What are the main types of short-term rental permits in New Orleans?+
New Orleans issues several permit types, primarily distinguished by zoning and owner-occupancy. The main categories include Residential STRs (RSTR), which require a homestead exemption and are for renting part of a primary residence, and Commercial STRs (CSTR), for non-owner-occupied properties located in specific commercial or mixed-use zones.
Are short-term rentals allowed in the French Quarter?+
Generally, no. The ordinance strictly prohibits new short-term rentals in most of the French Quarter (Vieux Carré) to protect its historic nature and residential community. A very small number of pre-existing, legally licensed properties may be grandfathered in, but no new STR permits are issued for the area.
What are the penalties for not complying with the New Orleans STR Ordinance?+
Non-compliance can lead to severe penalties, including daily fines that can accumulate quickly for illegal operation or advertising without a permit. The city can also suspend or permanently revoke an existing permit and pursue further legal action against non-compliant operators.
Besides an STR permit, what other licenses are required in New Orleans?+
Yes, in addition to the specific STR Owner Permit, operators typically need to obtain an Occupational License and a Mayoralty Permit from the City of New Orleans. They must also register with both the city and the state of Louisiana for the purpose of collecting and remitting sales and occupancy taxes.
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