“Significant noncompliance issues” in the short-term rental community in Blue River prompted the town to remind folks of its policies passed in November 2025 that took effect in 2026.

A town newsletter explained the changes were a “significant overhaul” of regulations, and noncompliance could result in financial penalties or the suspension or revocation of short-term rental licenses.

All short-term rental properties in Blue River must have an active license, which cost $300 at the base level and increases by $300 per bedroom. For example, a four-bedroom rental would cost $1,500.

In 2027, the town will enforce a strict “one owner, one property” rule. Any individual cannot hold more than one license or interest in multiple licenses within town limits. Violations could result in revocation of all licenses for a period of 18 months.

All short-term rentals must include the town’s license number, proper occupancy limits and a statement of parking spaces available on the property, which cannot exceed five spaces, in their hosting platform’s listing, such as Airbnb or VRBO. The URL for all listings must be sent to the town.

The town also implemented occupancy limits that allow two guests per bedroom, plus two more additional guests. A two-bedroom unit would have a max occupancy of six guests, while a three-bedroom unit would allow eight guests.

All properties must also provide lodging tax reports and payments for the first quarter of 2026 and any delinquent payments from 2025. Hosting platforms don’t remit these taxes to the town.

Short-term rentals cannot have outdoor wood-burning fires of any kind on the property, and any outdoor fire activity must be limited to gas-powered appliances with an automatic shut-off timer.

The town is also requiring each property to post a specific notice on the entry door and counter of a primary kitchen that covers contact information, quiet hours, trash and recycling info, parking restrictions, fire restrictions, water conservation and any other information deemed necessary by the town.