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STR rules · verified 1mo ago

Short-term rental rules in Lexington, KY

Restricted City-level rules

Lexington-Fayette Urban County Government (consolidated city-county) regulates STRs through Zoning Ordinance Sec. 3-13 (passed July 11, 2023; effective Jan 2024) and Code of Ordinances Sec. 13-77 (Special Fees License). Two STR categories: Hosted (owner or permanent resident onsite) and Un-Hosted (absentee). Un-hosted STRs face a 600-foot buffer from other un-hosted units AND a 2% density cap within any 1,000-foot radius (reduced from the originally proposed 3%). All operators need (1) a Lexington business license, (2) a Special Fees License through the Division of Revenue at $200 first unit + $100 per additional unit, and (3) a zoning compliance permit. Agricultural zone rules adopted Jan 23, 2025 extend the framework into A-R/A-U zones. Fayette County's transient room tax is 8.5%. Penalties up to $500/day for unlicensed operation.

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Frequently asked

Are short-term rentals legal in Lexington, KY?

Lexington is currently restricted for short-term rentals. Permitted but with material constraints — caps, owner-occupancy rules, zoning carve-outs, or active ordinance review. For the actual fees, caps, owner-occupancy rules, and city-specific gotchas, sign in.

Do I need a permit to run an Airbnb in Lexington?

Almost certainly yes — almost every U.S. city now requires a short-term rental permit, vacation rental permit, or transient lodging permit before you can legally list. The specifics for Lexington (cost, renewal cycle, required documents) are behind sign-in. You can also read the source ordinance directly: https://codelibrary.amlegal.com/codes/lexingtonfayettecoky/latest/lexingtonfayettecoky_zone/0-0-0-19961.

What happens if I rent without a permit in Lexington?

Most cities charge per-night fines (a few hundred to a few thousand dollars per violation), escalating to cease-and-desist letters and platform delisting on repeat. Airbnb and Vrbo now share permit-validation feeds with most major cities, so unpermitted listings get blocked at the platform level. Sign in to see the specific penalty schedule for Lexington.

How current is this data for Lexington?

This record was verified 1mo ago against the city's published ordinance (.gov or the city's official municipal-code publisher). Cached cities re-verify on a cadence — daily for cities under active legislation, weekly otherwise. Signed-in users can hit Refresh on any city to force a fresh pull. If you're underwriting a deal, always confirm against the city's code-enforcement office before closing.

Can my HOA or condo association ban STRs even if Lexington allows them?

Yes. City permits authorize you under municipal law, but your HOA, condo association, or co-op board sets contractual rules that override the city for your unit. Many HOAs adopted blanket STR bans between 2018 and 2024 in response to neighbor complaints. Read the CC&Rs, bylaws, and rental addendums before you buy with an STR plan — the city saying yes does not mean your building says yes.