Yes, short-term rentals are legal in New Orleans — but the city runs one of the tightest permit systems in the country, and whether you qualify depends entirely on which of two permit types fits your property. A Non-Commercial Short-Term Rental (NSTR) permit is for owner-occupants who live in the home and hold a homestead exemption, and the city limits these to one per city square (block), awarded by lottery where demand is high. A Commercial Short-Term Rental (CSTR) permit covers non-owner-occupied units in commercial and mixed-use zones — but the city has not accepted new CSTR applications since June 8, 2023. If you were hoping to buy a house purely to Airbnb it in a residential neighborhood, New Orleans is likely a no.
| Key fact | New Orleans, LA |
|---|---|
| License required | Yes — NSTR (residential) or CSTR (commercial) |
| Primary residence required | NSTR: yes (homestead exemption); CSTR: no |
| Night cap | No nightly cap; NSTR limited to one per city square |
| Permit fee | NSTR $50 application; CSTR $1,000/yr + $50 application |
| Lodging tax | 5% gross rentals + 6.75% occupancy + per-night fees |
| Investor whole-home allowed? | Only via CSTR (commercial zones) — new permits frozen since 2023 |
| Last verified | 2026-07-20 |
This page is general information, not legal advice. Short-term rental rules change frequently — confirm current requirements directly with the City of New Orleans Short Term Rental Administration before operating.
Do you need a permit?
Yes. Every short-term rental in New Orleans — any rental of a residential unit for fewer than 30 days — requires a city permit, and there are two distinct types:
- NSTR (Non-Commercial Short-Term Rental) — for an owner-occupant renting their own home. The property must be the owner’s primary residence with a homestead exemption on file.
- CSTR (Commercial Short-Term Rental) — for non-owner-occupied units in commercial, mixed-use, and certain non-residential zoning districts. No residency requirement, but subject to the moratorium below.
As of June 2025, booking platforms such as Airbnb and Vrbo must verify a valid city permit number before a listing can accept reservations, so operating without a permit is difficult to sustain. Source: City of New Orleans Short Term Rental Administration (verified 2026-07-20).
Primary-residence requirement
For an NSTR permit, yes — strictly. Residential short-term rentals are allowed only on a property that carries a homestead exemption, which by definition is the owner’s primary residence. You cannot get an NSTR permit for a second home or a pure investment property in a residential neighborhood. CSTR permits carry no primary-residence requirement, but they exist only in commercial and non-residential zones — not in the residential blocks where most houses sit. This is the same owner-occupancy gate that limits investor rentals in cities like Denver, which bans non-owner-occupied short-term rentals outright.
Night caps and the one-per-square rule
New Orleans does not cap the number of nights you may rent. Instead, the binding constraint on residential rentals is spatial: only one NSTR permit is issued per city square (a “square” is a single city block). Where more than one owner on a square applies, the city awards the permit by lottery. In 2025 the city eliminated the special exemptions that had previously allowed up to two additional permits per square, tightening supply further. For CSTR properties, occupancy is limited to five bedrooms and ten guests per unit. Source: City of New Orleans STR Administration and Municipal Code Art. XI (verified 2026-07-20).
Permit fees
Fees are set by permit type:
| Permit type | Application fee | Annual/permit fee |
|---|---|---|
| NSTR (residential, owner-occupied) | $50 (per application) | — |
| CSTR (commercial) | $50 (non-refundable) | $1,000 per year |
The $50 NSTR application fee applies to each application filed, including during a lottery period. Source: City of New Orleans NSTR Application FAQs and Commercial Owner’s Permit page (verified 2026-07-20).
The CSTR moratorium (important for investors)
If you are looking at New Orleans as an investment market, this is the single most important fact: the city has not accepted new CSTR applications since June 8, 2023, under City Zoning Ordinance 19.4.A.20. Existing CSTR permit holders may renew, but no new commercial short-term rental permits are being issued. In practice, the only way to run a legal non-owner-occupied whole-unit rental in New Orleans today is to acquire a property that already holds a grandfathered CSTR permit — and permits are non-transferable on sale, so this requires care and legal review. Source: City of New Orleans Commercial Owner’s Permit page (verified 2026-07-20).
Lodging taxes and per-night fees
New Orleans layers several city-specific taxes and fees on short-term rentals, on top of Louisiana state and Orleans Parish sales taxes (platforms auto-collect most of these). The city’s own figures are:
- Orleans Parish Gross Rentals Tax: 5% of the rental charge.
- Orleans Parish Occupancy Tax: 6.75% of the rental charge.
- STR Occupancy Fee (per night rented): $5 per night for NSTR, $12 per night for CSTR.
- Occupancy Privilege Fee: $0.50 per night (for properties with 1–299 rooms).
A bill to raise the city’s occupancy-tax cap from 6.75% to 7.75% was pending as of mid-2026 but is not yet in effect — we will update this page if it passes. Source: City of New Orleans STR Taxes, Fees, and Fines page (verified 2026-07-20).
Whole-home vs. hosted
NSTR is effectively a hosted or owner-present model — it is tied to your homestead-exemption primary residence, so it is the home you live in. CSTR is the whole-home, non-owner-occupied model, allowing up to five bedrooms and ten guests, but only in commercial/non-residential zones and only via a grandfathered permit given the moratorium. There is no path to a non-owner-occupied whole-home rental in an ordinary residential neighborhood.
Zoning and other requirements
Residential (NSTR) short-term rentals are restricted to homestead-exemption properties, one per city square. CSTR units must be in a permitted commercial or mixed-use zone and typically require zoning approval before licensing. All CSTRs must have a noise-monitoring device installed (required since July 1, 2023). Homeowners’ associations and condo bylaws may impose additional restrictions independent of the city. Source: City of New Orleans STR Administration (verified 2026-07-20).
Enforcement and penalties
Permits are non-transferable, and since June 2025 booking platforms must verify a valid permit before allowing a booking, which is the city’s primary enforcement lever. Operating without a permit or violating STR standards can trigger fines of up to $1,000 per violation cited. Source: City of New Orleans STR Taxes, Fees, and Fines page (verified 2026-07-20).
Primary sources
- City of New Orleans Short Term Rental Administration
- Commercial Owner’s Permit (CSTR) — fees & moratorium
- STR Taxes, Fees, and Fines
Compare short-term rental rules in other cities
Short-term rental laws vary widely from one city to the next — compare New Orleans with other markets in our database:
- Short-term rental laws by city (database hub)
- Denver short-term rental rules
- Nashville short-term rental permit
- Is Airbnb legal in San Diego?
Frequently asked questions
Can I buy a house in New Orleans just to Airbnb it?
Generally no. In a residential neighborhood you can only get an NSTR permit for your own primary residence (homestead exemption required), and only one is issued per city block. A non-owner-occupied whole-home rental requires a CSTR permit in a commercial zone, and the city has not issued new CSTR permits since June 8, 2023 — so you would need to buy a property that already holds one.
How much does a New Orleans STR permit cost?
An NSTR application fee is $50. A CSTR permit is $1,000 per year plus a $50 non-refundable application fee, though new CSTR applications are currently frozen.
What taxes do I collect from guests?
The city imposes a 5% gross rentals tax, a 6.75% occupancy tax, a per-night STR occupancy fee of $5 (NSTR) or $12 (CSTR), and a $0.50/night occupancy privilege fee, on top of Louisiana state and Orleans Parish sales taxes.
Last verified: 2026-07-20. Rules change — confirm current requirements with the City of New Orleans Short Term Rental Administration before operating.