Executive Summary
A Wisconsin appeals court struck down the Village of Sister Bay's four-bedroom cap on short-term rentals, ruling it void under the state's Right to Rent law and limiting how far Wisconsin towns can cap STR capacity; the village could still appeal to the state Supreme Court. Reynoldsburg, Ohio unanimously passed an ordinance requiring an annual permit and a three-night minimum booking, with fines up to $1,000 and permit revocation, after complaints and gunfire at a March party. In Colorado, an Aspen Journalism analysis showed the strict rules Aspen and Pitkin County passed in 2022 have shrunk the market: county permits are down 29% in three years to just 79, Aspen holds 741, and STR stays face aggregate taxes as high as 22.35% versus 12.35% for hotels, with commissioners set to weigh new caps on August 18. Charleston, South Carolina's Planning Commission deferred a plan to cap occupancy at eight guests per rental after dozens of owners said it would cut their bookings by 25% or more. The City of Madison, Alabama approved a contract for third-party STR monitoring to enforce its ordinance, making unpermitted listings more likely to be caught and cited. And South Bend, Indiana committees heard two proposed bills to bring permitting to the city's 1,300-plus rentals, limited by Indiana's state preemption law.
New Regulations
Sister Bay, Wisconsin
Zoning / Litigation · Published July 14, 2026
A Wisconsin appeals court struck down the Village of Sister Bay's four-bedroom cap on short-term rentals, ruling the limit void because it conflicts with the state's Right to Rent law (Wis. Stat. 66.1014), which lets owners rent out their entire homes. The case now returns to circuit court, and Sister Bay could still appeal to the Wisconsin Supreme Court, but for now the ruling limits how far Wisconsin municipalities can cap STR capacity.
→ Source: Appeals court overturns Sister Bay short-term rental policy after homeowner lawsuit
Reynoldsburg, Ohio
Licensing / Permitting · Published July 15, 2026
Reynoldsburg's City Council unanimously approved an ordinance on July 13 requiring short-term rental operators to hold an annual city permit and setting a three-night minimum on bookings, with STRs defined as dwellings of five or fewer guestrooms rented for under 30 days. Violations such as noise can bring fines up to $1,000 and permit revocation, and the Columbus suburb passed the rules after a rise in STR complaints and crime, including gunfire at a March party.
→ Source: Reynoldsburg approves new rules for short-term rentals like Airbnb, Vrbo
Madison, Alabama
Enforcement / Monitoring · Published July 14, 2026
The City of Madison approved a contract with a third-party firm to monitor short-term rentals and bring them into compliance with the city's STR ordinance. Once monitoring is active, unregistered or non-compliant listings are more likely to be identified and cited, signaling tighter enforcement for operators in the Huntsville-area suburb.
→ Source: Madison approved contract for short term rental monitoring
Developing Regulations
Aspen and Pitkin County, Colorado
Permit Caps / Tax · Published July 19, 2026
An Aspen Journalism analysis found the strict short-term rental rules Aspen and Pitkin County passed in 2022 are deliberately shrinking the vacation-rental market, with county permits down 29% in three years to just 79 and combined permits down 9% since 2023, while Aspen holds 741 and the R/MF zone waitlist sits at 55. Pitkin County commissioners review a consultant's report on August 18 and could amend rental-history rules or adopt new caps, and STR stays there carry aggregate taxes as high as 22.35% versus 12.35% for hotels.
→ Source: Short-term rental market continues to shrink in Aspen and Pitkin County
Charleston, South Carolina
Occupancy · Published July 15, 2026
Charleston's Planning Commission deferred a proposed overhaul of the city's 2018 short-term rental rules that would replace the current four-unrelated-adults limit with a fire-marshal occupancy model capped at eight guests per rental. Dozens of property owners turned out to oppose the change, arguing the cap would cut their occupancy by 25% or more, and the commission will rework the proposal before it can advance to City Council.
→ Source: City of Charleston short-term rental ordinance change deferred
South Bend, Indiana
Licensing / Permitting · Published July 14, 2026
South Bend committees heard two proposed bills that would bring permitting and regulation to the city's 1,300-plus active short-term rentals, driven by resident complaints over safety, noise, trash, parking, and weak enforcement. Indiana's state preemption law limits how far the city can go in restricting STRs or holding owners accountable, so any rules would have to work within those bounds.
→ Source: South Bend short-term rentals could see permitting and regulation
