New Orleans STR Regulations: Permits, Lottery, and Enforcement

New Orleans short term rental regulations require two separate permits for every rental unit: an owner permit tied to the property and an operator permit tied to the person managing it. Which owner permit you qualify for depends on your zoning district and whether the property is your primary residence, and getting that match wrong will stop your application before anyone looks at your floor plan. The rules sit in Chapter 26, Article XI of the City Code.¹

Which Permit Your Property Qualifies For

The city issues two owner permit types: Non-Commercial Short Term Rental (NSTR) and Commercial Short Term Rental (CSTR).²

NSTR is the permit for an owner renting space in their own home. The property must carry a valid homestead exemption, which proves you actually live there.³ You can only claim the homestead exemption on one property.⁴ No exemption, no NSTR.

CSTR covers properties in eligible commercial or mixed-use zoning districts. There is no owner-occupancy requirement, but you need conditional use approval from the City Planning Commission before you can even submit the permit application.² Verify your parcel’s zoning in the Comprehensive Zoning Ordinance before buying or renovating. What the neighbors are doing is not evidence of what you can do.

The One-Per-Block Cap and the Lottery

Even a flawless NSTR application is not guaranteed a permit. The city limits each square block to a single NSTR, so two rentals can sit across the street from each other but not on the same side of the same block.⁵ When more than one applicant wants the slot on a given block, the city runs a lottery. Existing bed-and-breakfast operators get priority; otherwise it is a random drawing.²

If an NSTR already exists on your block, you are not eligible until that permit lapses or is revoked. This is a structural limit on supply, not a queue you can wait out predictably.

What You Submit and What It Costs

Applications go through the city’s One Stop App portal, where you upload documents, pay fees, and track status.⁶ The Department of Safety and Permits reviews each submission and may inspect the property to confirm it matches the floor plan and meets safety code. Missing documents usually mean rejection, not a request for more.

Proof of homestead exemption (NSTR only).³
A floor plan showing all doors, windows, guest bedrooms and bathrooms, owner-only rooms, kitchens, and interior doors.³
An evacuation plan showing fire exits, escape routes, and the location of every smoke detector, fire extinguisher, and carbon monoxide detector.³
A commercial general liability certificate of at least $1,000,000 per occurrence covering bodily injury, personal injury, and property damage. A standard homeowner’s policy does not qualify.⁷
Owner attestation, noise abatement, and sanitation and security plans on the city’s forms.²

You also need a separate STR operator permit. Every unit must have both an owner permit and an operator permit linked to it. The operator is responsible for day-to-day management and must be reachable by phone and physically present at the unit within one hour of being contacted. Any adult over 18 qualifies.⁸ If you plan to manage your own rental, you still file two applications.

Owner permit fees run $250 or $500 depending on license type.³ The operator permit carries a $50 non-refundable application fee plus $150 for a single NSTR unit or $1,000 for a single CSTR unit or multiple units.⁸

Permits are non-transferable. Buying a property with an active STR permit gives you no right to continue operating it; you apply for your own, and for NSTR you may have to enter the lottery.²

Annual Renewal

NSTR licenses do not renew on the anniversary of issuance. The city sets a fixed annual renewal window, and for 2026 it runs April 19 through May 2.² Miss it and your square block becomes eligible in the next quarterly lottery, which means someone else can claim the slot you lost.⁹ There is no late fee that restores your permit.

Rules You Have to Follow Once You’re Licensed

Occupancy

You can rent up to five guest bedrooms per unit, with a cap of two guests per bedroom and a hard ceiling of ten guests total.¹⁰ House size does not change the limits.

Postings and Listing Content

Your owner permit must be displayed where it is visible from the street and legible to guests and neighbors. Inside, you must post a fire evacuation diagram, trash and recycling collection days, and contact information for the city’s Short Term Rental Administration.⁷

Every online listing must show your owner permit number, your operator permit number, whether the unit is wheelchair accessible or ADA-compliant, the number of guest bedrooms, and the maximum occupancy. Listing a unit without this information is itself a violation.⁷

Fire and Life Safety

Working smoke detectors are required inside and outside every bedroom, carbon monoxide alarms outside every bedroom, and a charged fire extinguisher on every habitable floor.³ The city can verify compliance any time during the license period, not just at application.

Guest Records

Owners must keep registration records showing the actual dates of occupancy, total guests per stay, and rates charged. Records must be kept for three years and produced on request. Personally identifiable guest information may be redacted; booking and financial data must be complete.⁷

Taxes on Every Booking

The Orleans Parish STR Equalization Occupancy Tax is 6.75% of the listing price (cleaning fees included) on reservations of 29 nights or shorter.¹¹ Louisiana law authorizes the tax and requires online platforms to itemize all taxes owed on the guest’s receipt.¹²

Platforms like Airbnb automatically collect and remit certain taxes on behalf of hosts, including a New Orleans sales tax, a nightly hotel occupancy privilege tax, and a nightly STR occupancy fee. Hosts remain responsible for every other applicable tax the platform does not cover. If you take direct bookings or self-list, you are personally responsible for collecting and remitting all of them.

Federal Income Tax

Rental income is taxable federally, and how you report it depends on the services you provide. Rent an entire property without hotel-style services and the income generally goes on Schedule E as passive rental income. Provide substantial guest services, and the IRS treats it as an active business reported on Schedule C, which triggers self-employment tax.

One useful exception: if you use the property as your personal residence and rent it fewer than 15 days in the tax year, you do not report the rental income and cannot deduct rental expenses for those days. For an owner who only rents during Mardi Gras or Jazz Fest, the 14-day rule can be meaningful. “Personal use” is broad, though. It includes any day a family member stays there, any day used under a swap arrangement with another owner, and any day someone pays less than fair market rent.¹³

Enforcement, Fines, and Revocation

The Department of Safety and Permits investigates violations and complaints of unlicensed activity.¹⁴ State law caps individual violation fines at $500 per citation.¹⁵

A violation notice triggers an administrative hearing, after which the city mails a written judgment. A guilty finding can carry fines and permit revocation.¹⁶ Revocation is the harder blow for NSTR holders: once the permit is gone, the square block opens up in the next lottery, and getting back in is not guaranteed.

Anyone can report a suspected unlicensed rental or a permitted unit that is breaking the rules through the city’s online system. Neighbors, competing hosts, and even guests file complaints, and the STR Administration acts on them.

1
Municode Library. New Orleans, Louisiana – Code of Ordinances – Article XI Standards for Short Term Rentals
2
City of New Orleans. Short Term Rental Administration – Home
3
City of New Orleans. Residential Short Term Rental Owner’s Permit Application
4
Orleans Parish Assessor’s Office. Homestead and SAL
5
City of New Orleans. Ordinance No. 29381
6
City of New Orleans. One-Stop Shop Permitting and Licensing
7
City of New Orleans. City of New Orleans Code of Ordinances – Section 26-618
8
City of New Orleans. STR Operator’s Permit
9
City of New Orleans. Short Term Rental Administration – NSTR Renewal Period
10
City of New Orleans. CZO 20.3.LLL.2 Short Term Rental, Commercial Standards
11
City of New Orleans. STR Taxes, Fees, and Fines
12
Louisiana State Legislature. Louisiana Code RS 47:338.221 – City of New Orleans Short-Term Rental Occupancy Tax
13
Internal Revenue Service. Renting Residential and Vacation Property
14
City of New Orleans. Report an STR Violation
15
City of New Orleans. Short Term Rental Handbook
16
City of New Orleans. Responding to an STR Violation