STR Regulations

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.

18 min read Updated January 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.

Important: New Orleans STR regulations are among the most strictly enforced in the country. As of August 2025, platforms like Airbnb are required to verify permits before allowing bookings. Operating without proper permits can result in fines up to $15,000 per day. Always verify current requirements with the City of New Orleans Short Term Rental Administration before purchasing or operating a property.

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.

2 Permit Types Available
~15% Total Tax Rate
$15,000 Max Daily Fine

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

Completed Application Form

Submit through the City of New Orleans website during application windows

Proof of Property Ownership

Deed or title documentation showing current ownership

Homestead Exemption Proof (NSTR)

Documentation proving primary residence status for non-commercial permits

STR Owner Training Certificate

Completion of mandatory STR owner training program

24-Hour Local Contact

Name, address, phone, and email of responsible party available around the clock

Noise Monitoring Device

Required installation of approved noise monitoring equipment

Application Windows: New Orleans only accepts permit applications during specific periods: June 1-7, September 1-7, and December 1-7. Missing these windows means waiting for the next application period. Lotteries are held quarterly when applications exceed available permits due to density limits.

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
Important: In 2025, the New Orleans City Council eliminated all exceptions to STR rules, making regulations more uniform and stricter. Properties that previously operated under grandfathered exemptions may no longer be eligible. Verify your property's current status before investing.

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
Pro Tip: Before purchasing a property for STR investment in New Orleans, verify whether the area is at permit capacity. Contact the STR Administration at str@nola.gov to check availability in your target neighborhood.

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

Smoke Detectors

Working smoke detectors on every level and in each sleeping area

Carbon Monoxide Detectors

Required in properties with gas appliances or attached garages

Fire Extinguisher

At least one ABC-rated fire extinguisher readily accessible

Noise Monitoring Device

Mandatory installation of approved noise monitoring equipment

Emergency Information

Posted emergency contacts, exit routes, and local contact information

Zoning Compliance

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
Platform Impact: Airbnb removed hundreds of New Orleans listings in 2025 when the new platform verification rules took effect. Properties without valid permits can no longer be listed on major booking platforms. This represents the strictest platform accountability measures in the country.

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
Serious Consequence: New Orleans can shut off utilities for properties operating illegally after continued non-compliance. The city has demonstrated willingness to use this enforcement tool, making illegal operation extremely risky.

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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