New Orleans Airbnb & Short-Term Rental Regulations [2026 Guide]
Everything you need to know about operating a legal short-term rental in New Orleans, Louisiana. Complete guide to licensing, taxes, zoning restrictions, and compliance requirements updated for 2026.
New Orleans has some of the strictest short-term rental regulations in the United States. Following years of controversy over the impact of vacation rentals on housing and neighborhoods, the city implemented comprehensive rules that require permits, limit where STRs can operate, and mandate platform verification. Understanding these regulations is critical for anyone considering an Airbnb investment in the Crescent City.
Regulation Overview
New Orleans regulates short-term rentals through its Short Term Rental Administration, which oversees permitting, compliance, and enforcement. The city defines a short-term rental as the rental of all or any portion of a residential dwelling unit for lodging purposes with a duration of less than 30 consecutive days.
Key Regulatory Bodies
- City of New Orleans Short Term Rental Administration: Handles STR permitting, inspections, and compliance (str@nola.gov)
- New Orleans Code Enforcement: Investigates violations and issues citations
- Louisiana Department of Revenue: Oversees state sales tax collection
- New Orleans Bureau of Revenue: Administers local hotel occupancy taxes
Permit Requirements
All short-term rental operators in New Orleans must obtain proper permits before advertising or renting their property. The city requires two types of permits that must be displayed in all listings: an Operator permit (OSTR) and either an Owner permit (NSTR for residential or CSTR for commercial).
Application Requirements
Submit through the City of New Orleans website during application windows
Deed or title documentation showing current ownership
Documentation proving primary residence status for non-commercial permits
Completion of mandatory STR owner training program
Name, address, phone, and email of responsible party available around the clock
Required installation of approved noise monitoring equipment
NSTR vs CSTR Permits
New Orleans distinguishes between non-commercial and commercial short-term rentals based on zoning and owner occupancy. Understanding the difference is essential for compliance and investment decisions.
| Feature | NSTR (Non-Commercial) | CSTR (Commercial) |
|---|---|---|
| Zoning Requirement | Residential zones only | Commercial/mixed-use zones |
| Owner Occupancy | Required - must be primary residence | Not required |
| Guest Bedrooms | Varies by property type | Up to 5 bedrooms |
| Maximum Guests | 2 per bedroom + 2 | Up to 10 guests |
| Density Limits | 1 per owner per city square | Max 25% of units in building |
| Lottery Required | Yes, if over capacity | Yes, if over capacity |
| French Quarter | Prohibited | Prohibited |
NSTR Permit Details
Non-Commercial Short-Term Rental (NSTR) permits are designed for New Orleans residents who want to rent their primary residence or a portion of it. To qualify:
- Property must be in a residential zone
- Owner must reside on the property as their primary residence
- Homestead exemption must be filed and active
- Only one NSTR permit allowed per property owner per city square
- Must complete STR owner training before applying
CSTR Permit Details
Commercial Short-Term Rental (CSTR) permits allow non-owner-occupied rentals in eligible commercial and mixed-use zones:
- Property must be zoned for commercial or mixed-use
- No owner-occupancy requirement
- Maximum 5 guest bedrooms and 10 guests
- Less than 25% of total dwelling units in building can be licensed as STRs
- Subject to all safety and noise monitoring requirements
Zoning Restrictions
New Orleans has significant geographic restrictions on where short-term rentals can operate. Some of the city's most iconic neighborhoods are completely off-limits to vacation rentals.
Prohibited Areas
| Area | STR Status | Notes |
|---|---|---|
| French Quarter (Vieux Carre) | Prohibited | Complete ban on all short-term rentals |
| Garden District | Prohibited | Vacation rentals banned throughout district |
| Residential Single-Family Zones | NSTR Only | Owner-occupied permits only; density limits apply |
| Commercial/Mixed-Use Zones | CSTR Allowed | Subject to 25% building cap |
Density Limits
New Orleans enforces strict density limits to preserve neighborhood character:
- One Per Square Rule: Only one STR permit per property owner per city square (block)
- Building Limits: No more than 25% of dwelling units in any building can be licensed as STRs
- Lottery System: When applications exceed available permits, a lottery determines which owners receive permits
- Waitlists: Unsuccessful lottery participants may be placed on waitlists that can span years
Hotel Occupancy Taxes
New Orleans STR operators are responsible for collecting and remitting multiple layers of taxes. The combined tax burden is approximately 13-15% depending on property size and booking platform.
| Tax Type | Rate | Collected By | Remittance |
|---|---|---|---|
| New Orleans Sales Tax | 5% | Host or Platform | Monthly to City |
| STR Occupancy Tax | 6.75% | Host or Platform | Monthly to City |
| Exhibition Hall Authority Tax | 3% | Host or Platform | To State |
| Hotel Occupancy Privilege Tax | $0.50-$2.00/night | Host or Platform | Per booking |
| Total (Approximate) | ~15% | - | - |
Platform Tax Collection
As of 2026, Airbnb and VRBO collect and remit most taxes automatically for hosts booking through their platforms. However, hosts remain responsible for:
- Registering with the Louisiana Department of Revenue
- Registering with the City of New Orleans Bureau of Revenue
- Collecting and remitting taxes on direct bookings
- Filing regular tax returns even if platforms handle collection
- Maintaining records of all rental income and tax payments
Tax Revenue Allocation
New Orleans dedicates STR occupancy tax revenue to specific purposes:
- 75% to the city's infrastructure fund
- 25% to New Orleans & Company for tourism promotion
Hosting Limits & Rules
New Orleans imposes operational requirements on STR hosts to protect neighborhood quality of life and ensure guest safety.
Occupancy Limits
- Guest Maximum: 2 adults per bedroom plus 2 additional guests
- CSTR Maximum: 10 overnight guests maximum regardless of bedroom count
- Event Prohibition: Parties, weddings, and large gatherings are strictly prohibited
- Quiet Hours: Must comply with city noise ordinances
Safety Requirements
Working smoke detectors on every level and in each sleeping area
Required in properties with gas appliances or attached garages
At least one ABC-rated fire extinguisher readily accessible
Mandatory installation of approved noise monitoring equipment
Posted emergency contacts, exit routes, and local contact information
Property must conform to all applicable zoning ordinances
Platform Verification Requirements
In a landmark 2024 decision, the New Orleans City Council unanimously passed legislation requiring booking platforms to verify STR permits before allowing listings.
Key Platform Requirements (Effective 2025)
- Permit Verification: Platforms must verify that listings have valid city-issued permits before accepting bookings
- July 2025 Deadline: Hosts required to submit permit information to continue hosting
- August 2025 Enforcement: Platforms required to remove listings without valid 2025 permits
- Ongoing Compliance: Annual permit renewal verification required
Penalties & Enforcement
New Orleans aggressively enforces its STR regulations through multiple mechanisms, with some of the harshest penalties in the nation.
Violation Penalties
| Violation Type | First Offense | Continued Violation |
|---|---|---|
| Operating without permit | $500 - $1,000/day | Up to $15,000/day |
| Platform with illegal listing | $1,000/listing/day | $1,000/listing/day |
| Operating in prohibited zone | $500 - $1,000/day | Up to $15,000/day + utility shutoff |
| Exceeding occupancy limits | $300 - $500 | Permit suspension/revocation |
| Noise violations | $100 - $300 | Permit review/revocation |
| Tax non-compliance | Back taxes + penalties | Criminal charges possible |
Enforcement Methods
- Platform Monitoring: City works with platforms to identify unlicensed listings
- Neighbor Complaints: Code enforcement responds to neighborhood complaints
- Utility Shutoff: Continued non-compliance can result in utility disconnection
- Legal Action: City pursues court action against repeat violators
- STR Dashboard: Public dashboard tracks licensed properties
2026 Regulatory Updates
New Orleans continues to strengthen its STR regulations. Here are the key developments for 2026:
Recent Changes
- Exception Elimination: City Council removed all exceptions to STR rules in 2025, creating uniform regulations
- Platform Verification: Full implementation of platform permit verification system
- Increased Enforcement: Enhanced monitoring and faster response to violations
- Potential Tax Increase: Legislation considered to increase STR occupancy tax from 6.75% to 7.75%
Current Market Status
As of early 2026:
- Approximately 2,315 residential and commercial licenses currently issued
- Over 3,400 permit applications pending review
- Over 1,000 listings removed from Airbnb due to permit verification requirements
- Significant reduction in illegal listings on major platforms
What to Expect
Investors should anticipate:
- Continued strict enforcement of existing regulations
- Potential additional restrictions in some neighborhoods
- Long waitlists for permits in popular areas
- Premium value for properties with transferable permits (limited availability)
Frequently Asked Questions
Yes, New Orleans requires all short-term rental operators to obtain both an Operator permit (OSTR) and either a Non-Commercial (NSTR) or Commercial (CSTR) permit before listing their property. Operating without valid permits can result in fines of $500 to $15,000 per day, and platforms like Airbnb are now required to verify permits before allowing bookings.
NSTR (Non-Commercial Short-Term Rental) permits are for residential zones and require owner-occupancy, meaning you must live in the property as your primary residence. CSTR (Commercial Short-Term Rental) permits are for properties in commercial zones and allow non-owner-occupied rentals with up to 5 guest bedrooms and 10 guests maximum.
No, short-term rentals are illegal in most of the French Quarter (Vieux Carre district). The Garden District also has a complete ban on vacation rentals. These restrictions have been in place for years and are strictly enforced. Violators face significant fines and can have utilities shut off for continued non-compliance.
New Orleans STR operators must collect approximately 13-15% in combined taxes, including a 5% city sales tax, a 6.75% STR occupancy tax, a 3% Exhibition Hall Authority tax, and a $0.50-$2.00 per night fee. Airbnb and VRBO automatically collect and remit most of these taxes on behalf of hosts for bookings made through their platforms.
New Orleans only accepts STR permit applications during specific windows: June 1-7, September 1-7, and December 1-7 each year. Due to density limits (one permit per property owner per city square), lotteries are held quarterly when applications exceed available permits. It's essential to apply during these windows and be prepared for potential waitlists.
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