Lincoln, NE Airbnb & Short-Term Rental Regulations 2026

Regulation Overview

Nebraska's capital and second-largest city, home to the University of Nebraska and a steady college-town/game-day STR market; the city runs a straightforward citywide licensing system with clear occupancy caps.

A real citywide license with a defined fee, a zoning conditional-use check, and a firm occupancy cap represent genuine operating conditions, though no numeric unit cap or owner-occupancy mandate was confirmed.

Nebraska State Law

State preemption: Yes — Neb. Rev. Stat. §18-1758 (enacted as LB 57, 2019) bars any Nebraska municipality from adopting an ordinance that expressly or effectively bans short-term rentals. Cities may only adopt STR-specific rules where the primary purpose is protecting public health and safety, and must apply land-use ordinances to STRs the same way they apply to similar non-STR properties.

Statewide rules: No statewide STR license. State sales tax of roughly 5.5% plus a 1% state lodging tax apply; counties may add a lodging tax of up to 4% (e.g., Douglas County).

Taxes: ~5.5% state sales tax + 1% state lodging tax + local sales tax + county lodging tax up to 4%.

2025–2026 legislation: No new 2025/2026 STR-specific statute identified beyond LB 57 (2019) — VERIFY current legislative session for any pending bills.

Lincoln Rules

Governing jurisdiction: City of Lincoln (Building & Safety Dept.).

• Lincoln enacted its short-term rental ordinance in June 2021, creating a legal licensing process for STRs within city limits (Lincoln Municipal Code Ch. 5.39).
• Whole-unit short-term rentals are licensed citywide for $250/year through the Building & Safety department, and each individual rental unit needs its own separate license, renewed annually.
• Licensing requires a zoning conditional-use check, and short-term rentals are conditionally permitted in most residential and commercial zoning districts under Lincoln Zoning Code §27.62.040(c)(1-5).
• Occupancy is capped at 2 guests per sleeping area, up to a maximum of 12 guests total per property.
• Nebraska's state preemption (Neb. Rev. Stat. §18-1758) bars Lincoln from banning STRs outright, which is part of why the city built a licensing system instead of prohibiting the use.
• As Nebraska's capital and home to the University of Nebraska-Lincoln, the city sees steady demand tied to Husker football game days, state government travel, and university events.

Not confirmed

We could not verify the following against a primary source. Confirm each with the jurisdiction before you rely on it:

• Lincoln/Lancaster County local lodging tax rate
• Minimum stay length
• Whether the license transfers on sale
• Any owner-occupancy distinctions in fee or process

Buyer Due Diligence Checklist

Before you write an offer on a short-term rental here:

• Get a written determination from the governing jurisdiction for the specific parcel. Verbal guidance from anyone else is not diligence.
• Establish which jurisdiction governs — city, town, village and unincorporated county can differ sharply within a few miles.
• Ask whether an existing permit transfers on sale. In many markets it does not, and a listing marketed as a running short-term rental may convey nothing of the sort.
• Read the HOA or condo covenants during your inspection period. Private covenants bind even where the jurisdiction permits the use.
• Model revenue against the legal occupancy cap, not the bedroom count.

Frequently Asked Questions