New Orleans STR Rules: Vieux Carré Ban + Commercial Permits

New Orleans's STR ordinance, refined repeatedly from 2017 through the 2024 amendments, draws three concentric restriction zones. The Vieux Carré (French Quarter) and adjacent residential neighborhoods prohibit non-owner-occupied STRs entirely — the city explicitly preserved the historic-residential character there. Outside the French Quarter, residential-zoned STRs are capped at one per city block ('square'), creating an extreme scarcity dynamic in the Marigny, Bywater, Treme, and adjacent neighborhoods. Commercial-zoned property has far more latitude. The result: the French Quarter STR market is closed; the rest of the city operates under a permits-by-lottery scarcity system.

Licensing & Registration

Three permit categories. Non-Commercial Short-Term Rental (NCSTR): residentially-zoned property, capped at one per square, $500/year + inspection. Commercial Short-Term Rental (CSTR): commercial-zoned property, no per-block cap, $500/year + inspection. Owner-Occupied Permitted STR: owner's primary residence, can be partial (rooms only), no per-block cap. The Vieux Carré (VCC) has no permit category — STR is categorically prohibited there in residential zones. Annual permits, on-site contact required, posting of permit number on listings.

Lodging & Occupancy Taxes

Louisiana state sales tax 4.45% + Orleans Parish 5% + Orleans Parish hotel-motel tax 8% = 17.45% effective lodging tax. Plus $0.50/night dedicated tax for tourism marketing. Among the highest combined STR tax rates in the country. Airbnb collects Louisiana state and parish sales tax + the hotel-motel tax automatically. Operators booking off-platform must register with the LA DOR and Orleans Parish.

Penalties & Enforcement

Operating without a valid STR permit: $500 first day, $1,000 per day thereafter, escalating with offense count. The city's STR enforcement was significantly expanded in 2024 with dedicated compliance staff and platform-data subpoenas. Vieux Carré violations are pursued aggressively — multiple operators have been forced to cease operations and pay back-tax owed.

Recent Changes

2024 amendments tightened the per-square cap in residential zones and clarified that commercial zones in residential-character neighborhoods (Magazine Street's commercial corridor, parts of Frenchmen, etc.) remain permissive for CSTR. Investors evaluating New Orleans should verify zoning and the per-square cap status before bidding — the cap is a hard ceiling, and properties in capped squares are unable to obtain new NCSTR permits.

Tax Strategy for Compliant Investors

Even within New Orleans's regulatory framework, properly-licensed STR investors keep the federal tax stack intact. Cost segregation accelerates depreciation across 5-year personal property and 15-year land improvements, and the STR loophole can convert losses into active-income offsets for materially-participating owners. See cost segregation for Airbnb properties for the full playbook.

Frequently asked questions