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Short‑Term Rental Rules: What Owners Must Know

Short‑Term Rental Rules: What Owners Must Know

Thinking about listing a home in the French Quarter, Marigny, or Holy Cross as a short‑term rental? The rules are specific, change often, and vary by block. If you understand the permits, where STRs are allowed, and how enforcement works, you can plan with confidence. This guide breaks down what you must know now, with practical steps to keep you compliant. Let’s dive in.

What makes an STR legal in New Orleans

You need a city permit to operate any short‑term rental. The City issues owner permits and an operator permit, and most listings need both. Start on the City of New Orleans Short Term Rental Administration page to confirm current rules and application windows.

Permits you may need

  • NSTR, residential owner permit. Typically requires owner‑occupancy and proof of a homestead exemption at the property.
  • CSTR, commercial owner permit. Limited to commercial zones and subject to higher standards. The City is not accepting new CSTR applications at this time. Check the commercial STR page for status and renewal details.
  • OSTR, operator permit. Each STR must have an operator on file. The owner can be the operator or you can designate one.

Core operating standards

  • Owner‑occupancy proof. Most residential permits require a homestead exemption in the owner’s name.
  • Safety and posting. Maintain smoke alarms, fire extinguishers, and an evacuation diagram. Post the STR permit placard where guests and neighbors can see it.
  • Insurance. Maintain appropriate liability coverage. Commercial STRs require specific limits.
  • Response plan. You or your operator must be reachable and able to respond on‑site within one hour of a complaint.
  • Advertising. Include your permit numbers, bedroom count, and occupancy limits in all listings.

One‑per‑square: how density caps affect Marigny and Holy Cross

The City limits residential STR density to one permit per “square” in most residential areas. A square is the area bounded by four streets that form a square. When multiple owners apply within the same square, permits are allocated by lottery procedure.

Marigny has had one of the highest concentrations of STR interest in the city. After the one‑per‑square rule, many contested squares faced reductions through lotteries and exceptions, as noted in local reporting in 2023. If you plan to buy or operate in Marigny, expect competition for residential permits and confirm whether your square already has an active NSTR.

Holy Cross is mostly residential and subject to the same citywide rules. Before you buy or list, verify zoning and look up existing permits on the city’s STR registry map. Parcel‑by‑parcel checks matter here.

French Quarter: what is and is not allowed

Short‑term rentals are broadly prohibited in the Vieux Carré. A limited exception exists in the Vieux Carré Entertainment district along Bourbon Street. Review a clear summary of the French Quarter’s limits in this overview of Orleans Parish’s STR rules. If your property sits in the Quarter, you will also work with the Vieux Carré Commission on any exterior changes or signage.

Recent changes owners should watch

  • Density and lotteries. The one‑per‑square rule now governs most residential STR availability, with periodic lotteries in contested squares. Track the City’s posted lottery dates and procedures.
  • Platform verification. The City adopted rules that require platforms to verify permits and re‑verify listings. Litigation is ongoing, and outcomes could change how listings appear or are removed. Follow updates on the platform verification changes and lawsuit.
  • Commercial pause. New CSTR applications were paused beginning June 8, 2023. Check the commercial STR page for the latest status before pursuing a commercial path.

Step‑by‑step due diligence checklist

Use this quick process before you buy or list in the French Quarter, Marigny, or Holy Cross:

  1. Confirm where STRs are allowed
  • Look up your address and square on the STR registry map. Check for an existing permit in your square and note any application windows or lottery notes.
  1. Verify owner‑occupancy eligibility
  • If you plan a residential permit, confirm you can qualify for a homestead exemption. See the Orleans Parish Assessor’s guidance on the homestead exemption.
  1. Choose the correct permit path
  • Residential NSTR requires owner‑occupancy. Commercial CSTR is zone specific and currently paused for new applications. Start at the City’s STR Administration home for current rules.
  1. Prepare safety and compliance items
  • Post evacuation diagrams and permit placards. Keep smoke alarms and fire extinguishers in working order. Include permit numbers, occupancy, and bedroom count in all ads.
  1. Plan for costs, taxes, and management
  • Budget for permit fees and local occupancy taxes. Review the City’s STR taxes and fees. Set up an operator who can respond within one hour.

Buying with an STR goal in these neighborhoods

If you are purchasing with a short‑term rental plan, do your homework early. Confirm zoning, check the square’s status, and verify your path to a homestead exemption if you need a residential permit. In the French Quarter, assume STRs are not allowed unless your property sits in the limited entertainment corridor and meets all other rules. In every area, align your plan with the City’s current application windows and lottery schedules.

Ready to evaluate a specific address or craft an investment‑minded purchase strategy in Marigny, Holy Cross, or near the Quarter? Reach out to New Orleans Luxury Living for discreet, expert guidance that pairs neighborhood nuance with white‑glove service.

FAQs

Are short‑term rentals allowed in the French Quarter of New Orleans?

  • STRs are broadly prohibited in the Vieux Carré, with a limited exception along Bourbon Street’s entertainment corridor, and many properties require Vieux Carré Commission review for exterior changes; start with the Vieux Carré Commission for property‑specific guidance.

How does the one‑per‑square lottery work for Marigny and Holy Cross?

  • When multiple applicants seek a residential permit within the same square, the City allocates permits by lottery and announces dates and procedures on its STR pages; confirm your square’s status before applying.

What documents show I qualify for a residential STR permit in New Orleans?

  • You typically need proof of owner‑occupancy, most often a homestead exemption in your name at the property, plus standard safety and posting items required by the City.

What should Holy Cross owners check before listing a home as an STR?

  • Confirm zoning and look up current permits near your address on the City’s STR registry map to see if your square already has a residential STR.

What taxes and fees apply to short‑term rentals in New Orleans?

  • Expect application fees, occupancy fees, and local taxes; the City lists current rates and remittance details under STR taxes and fees.

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