Fishers' Rental Cap Expires in 2028, and Your HOA Covenants Inherit the Job

Two Fishers houses with the same square footage, the same school bus stop, and the same list price can carry different futures. One sits in a subdivision where the City will still issue a rental permit. The other sits in a subdivision that has reached its limit, where a new owner who later needs to lease the home out may have no legal way to do it. Since January 1, 2026, the City of Fishers has capped new single-family rental permits at 10 percent per subdivision.

The cap also has an end date. According to Current in Fishers, a state law signed in March 2026 ends city rental caps across Indiana on January 1, 2028, and it moves decisions about rentals to homeowners associations, where only owner-occupants can vote on rental restrictions. If you're buying in Fishers and think there's any chance you'll have to rent the house out later, maybe after a job transfer, start with the City's map. Then read the HOA's declarations, because for the next 15 months they are taking over that job.

The Permit Follows the Subdivision, Not the House

The Fishers City Council unanimously adopted the Home Rental Registration & Permitting Program on April 21, 2025, as Chapter 163 of the Fishers Code of Ordinances. It covers single-family homes, townhomes, and platted condominiums. The rules that matter in a transaction:

• Legacy rentals stay. Homes rented before January 1, 2026 aren't subject to the cap and don't count toward it.
• The map shows the status. The City's Rental Capacity Map marks each subdivision green if it's below the cap and can take more rentals, or red if it's over the cap and has no room for more.
• Buyers can reserve a spot. If you plan to rent a home you haven't bought yet, you can apply for pre-approval. In a subdivision with room, it holds your place for 60 days while you close and register.
• HOA rules can be stricter. Covenants or neighborhood rules can limit rentals more tightly than the City does.

Because legacy rentals sit outside the count, a subdivision's map color describes permits issued since the ordinance took effect, not every lease on the street. A buyer can see existing rentals nearby and still be in a red subdivision, or see none and still be in a green one.

Where the Cap Already Binds

At the City's Spring 2026 HOA workshop, staff reported 3,050 rentals in Fishers, 68 neighborhoods with more than 10 percent rentals, 37 with more than 20 percent, and more than 150 violations. The City hasn't published the total number of subdivisions, so those 68 can't be stated as a share of all neighborhoods. The live map is the only reliable way to check a particular address.

Enforcement starts with software. Tolemi flags suspected rentals, the zoning team sends a courtesy letter, and the owner has 30 days to register, stop renting, request an exemption, or correct a misidentification. After that, a violation with fines is issued, and continued noncompliance can go to court. The City's published fines are $250 for failing to register, $1,000 for a first unpermitted rental, and $5,000 to $7,500 for later violations.

The Exits Written Into the Ordinance

For relocating families, the exemption list matters more than the cap. The City lists these general exemptions: renting to a dependent or parent, a job relocation within the past year, undue hardship such as a death or divorce, a home that sat on the market for six months without selling, and military deployment. Owners who think they qualify apply through a City exemption form and hear back by email.

The six-month exemption depends on the market. Across Hamilton County in August 2026, the median time from listing to pending was 18 days, and inventory was 2.1 months. The weekly data for September 21, 2026 showed days on market up 43 percent from a year earlier. Even with that slowdown, a listing would have to sit far longer than typical before it qualified. Those are countywide numbers, not a Fishers-only series. For most owners, the job-relocation exemption is the realistic way out, and it has a one-year window.

A Cap With an End Date

House Enrolled Act 1210 is a 418-page local government finance and property tax bill. It also added a section to Indiana Code that bars cities and towns from adopting or enforcing rules that prohibit or restrict renting privately owned homes. Registration and inspection are still allowed, as long as they don't work as a cap. The full record is on the Indiana General Assembly's HB 1210 page.

Fishers Mayor Scott Fadness argued against the rental-cap language at the Statehouse. Afterward, he told Current in Fishers the city would keep enforcing the cap for as long as it legally could:

"And then, we'll monitor the Legislature and we'll continue to try to work to see if we can't get the language changed so we can continue on. But, either way, even if we can't, our intention is to maintain the registration even if we have to do away with cap."

He described large corporate purchases of homes as investments as the main reason for the cap. At the Statehouse, the Indiana Association of REALTORS®' Maggie McShane testified that copying ordinances like those in Fishers and Carmel in every community would create a shortage of rental housing.

Who Votes When the HOA Decides

HEA 1210 left the question with homeowners associations, and it changed who gets to vote. Under Indiana Code 32-25.5-3-11, an owner who doesn't claim the property as a homestead can't vote on any rental-related restriction. Homes still owned by the developer are exempt. That rule has applied since the law passed in March 2026, well before city caps end. A separate 2026 change to IC 32-25.5-3-9 says an HOA can't require more than two-thirds of owners to amend its covenants. The previous version of the HOA Act set that bar at 75 percent.

According to WTHR, State Rep. Danny Lopez, a co-author, called the result a compromise that lets neighborhoods adopt rental policies "when neighbors want them" and gives priority to owners who live in their homes. The City of Carmel's 2026 HOA legislation presentation describes the kinds of restrictions associations can adopt:

1. A rental cap, which sets a percentage or number of homes that can be rented at one time
2. A waiting period, which requires owners to hold the home for a minimum number of years before renting
3. A hybrid of a cap and a waiting period
4. A complete ban on both short-term and long-term rentals

The same presentation notes that these restrictions usually include a hardship exception and grandfather existing rentals.

Fishers told HOA leaders that more information was coming about a Declarations & By-Laws program to help associations adopt rental caps. As of early October 2026, the City's HOA resources page doesn't list that program. The rules after 2028 will be set one association at a time, through each HOA's own amendment process.

A Due-Diligence Order for a Fishers Offer

If future rental flexibility matters to your household, these checks fit into a normal option period:

1. Check the subdivision's color on the City's Rental Capacity Map, and note whether nearby rentals are legacy rentals or newly permitted ones.
2. Request pre-approval before closing if you plan to rent soon. In a green subdivision, it holds your spot for 60 days.
3. Read the recorded declarations and by-laws for any existing rental restriction, waiting period, or leasing rule. Under the City ordinance these already apply alongside the cap, and after January 1, 2028 they'll be the main limit.
4. Ask the HOA board whether an amendment on rentals is being discussed, and how the association votes on amendments.
5. Review the documents with an Indiana real estate attorney if leasing is central to your plans. This post describes the rules and is not legal advice.

Does an existing rental in the neighborhood mean I can rent too?

Not necessarily. Rentals that existed before January 1, 2026 are grandfathered and don't count toward the cap, so the map's color is the better guide.

Will Fishers stop tracking rentals in 2028?

The City has said it plans to continue registration and enforcement after January 1, 2028. State law allows that as long as registration doesn't work as a cap.

If I rent my Fishers home out later, can I vote on my HOA's rental rules?

Under IC 32-25.5-3-11, owners who don't claim the home as a homestead aren't eligible to vote on rental-related restrictions.

If you're comparing Fishers homes and want to know where each one stands on the rental map and in its HOA declarations before you write an offer, Heigl Real Estate Group can help you pull those documents early and talk them through with you. Contact Us to start with the subdivisions on your list.