Vare’s view on Fishers rental cap proposal

By JOCELYN VARE
Guest Columnist

The Fishers City Council is poised to approve Mayor Fadness’ proposal to enact a citywide rental cap. This new policy would be the first of its kind in the nation and will impact Fishers neighborhoods of single-family homes, townhomes and condos.

Even if you have already heard about the rental cap, let’s now make sure you have the most accurate information about it. You deserve the real story, not false alarms. Your take on this policy matters. I’ll suggest some effective ways to make your opinion heard on this proposal at the end.

Let’s first review the Fishers housing market and the data that determines our community housing needs.

Like many cities in the nation, Fishers has a shortage of all types of housing. According to the City of Fishers’ 2022 Housing Study that was developed by Urban Partners, the city requires a total of 10,100 more owner-occupied units and 3,450 more rental units to keep up with the demand through the year 2040.

There are two co-existing characteristics of Fishers’ current housing market that are reasonable, not alarming. Homeownership is strong and there are rentals in single-family home neighborhoods. The Housing Study stated that current home ownership in Fishers is “exceptionally high” at 77.5 percent, exceeding both the national and state averages.

The study also estimated that many older single-family homes in Fishers would filter to rental status by 2040. This is anticipated and not considered a detriment since additional rental units are needed. The City of Fishers reports that there are 2,522 single-family home rentals in the city currently, which is 8 percent of all the single-family homes. If you have concerns about specific rental homes in your neighborhood, that is understandable and should be addressed.

Of course, there could also be a concern about the balance of rentals and for-sale homes in a single neighborhood. There are indeed a few Fishers neighborhoods that have a higher percentage of rentals today. But most are not single-family home neighborhoods. According to the City of Fishers, there are 17 Fishers neighborhoods that are more than 30 percent rentals. Of those, 11 are condo/townhome communities, including three that were recently built as for-sale units.

A few years ago, a national housing trend made headlines and impacted Fishers and other desirable cities. Single-family homes were being purchased by institutional investors and converted into rentals. Thankfully, this genuine concern has now slowed considerably. In fact, the most recent purchase of a Fishers’ single-family home purchased by an institutional investor occurred over two years ago, in January 2023!

According to the City of Fishers, 583 single-family homes are still owned today by institutional investors in Fishers. Institutional investors have sold 18 homes back since September 2022.

Graphic provided

Fishers residents may have reasonable concerns that rentals in their neighborhood may be poorly maintained and lower their home values. Of course, exterior maintenance issues are not exclusive to rental homes. Thankfully, there are city code enforcement procedures and a fine system in place to ensure that all Fishers homes are maintained, owner-occupied and rentals alike. Condo and townhome exterior maintenance is usually a direct responsibility of the Home Owners Association (HOA).

Greater Indianapolis and Fishers is a very desirable housing market. Data have not been released by the City of Fishers or discovered that support the concern that rentals lower home values in Fishers. In fact, data indicates that Fishers rental-capped neighborhoods appreciate at a lower rate than the city average. This is thought to be caused by a rental cap decreasing the number of buyers from the neighborhood’s potential.

Now, with this data-driven overview of the citywide housing market, let’s turn to the rental cap proposal. The proposed Fishers rental cap would limit the number of rentals to no more than 10 percent of the total number of units in the neighborhood. Current owners and new buyers would need to register and be approved for a rental permit by the City of Fishers before renting the home, townhome or condo. A rental permit would be denied if the neighborhood’s number of for-rent properties had already reached the 10 percent cap, or the homeowner doesn’t meet certain exceptions.

These are the specific exemptions that will allow a rental permit to be granted even if the neighborhood has reached the 10 percent cap: renting to family members or legal dependents, a job relocation, deployed military, if selling the property will cause undue burden, and a failure to sell property after six months. When applying for a rental permit, the reason would be reported in order to qualify for an exception. Importantly, all current rental properties will be grandfathered in and be granted a rental permit, even if the neighborhood is over the 10 percent cap.

Some HOAs have already enacted rental caps for their neighborhood and these caps will stay in place if it is set at 10 percent or less. An HOA could choose to implement stricter rental regulations than the city cap. Some HOAs have attempted to change their covenants to include a rental cap but have either failed because of lack of support or strict voting requirements.

The proposed rental cap ordinance states that it ensures rentals are maintained, eliminates blight, protects the character of residential neighborhoods and encourages home ownership. It is important to note that the rental cap ordinance does not pertain to short-term rentals, like an Airbnb.

The language of the proposed rental cap and registry was given a first reading by the City Council on Feb. 24, 2025. The second reading will be at the Monday, April 21 City Council meeting and residents are welcome to share their feedback during the public hearing. It is anticipated that the final vote to approve the ordinance will be on April 21 or at the Monday, May 19 City Council meeting. If approved, the rental cap will be effective on Jan. 1, 2026, when enforcement will begin with a fine for a violation and all long-term rentals being registered.

Now that you have the current details about the Fishers housing market, our community housing needs and the proposed rental cap, it is time for you to tell your city council members what you think about it, before they cast their vote.

Since each Fishers neighborhood is unique, it is reasonable that each neighborhood and neighbor may have a different take on this proposal. That’s why your opinion matters as this citywide issue is being debated. Here’s how to best get your voice heard:

• Attend the Monday, April 21 city council meeting at 7 p.m. at Fishers Municipal Theater, 1 Municipal Drive. Any citizen can speak at the microphone for three minutes about the rental cap proposal during the public hearing. The purpose of the public hearing is to give the city council members the opportunity to hear from you, their constituents.
• Email your city councilors with your feedback before April 21. Visit gov/government/mayors-office/city-council for each member’s email address. Send your email to each of the three at-large (city-wide) city councilors and the city councilor that represents where you live. Consult the map to determine the city councilor for your district. Remember to note your address and CC mayorfadness@fishers.in.us.
• Contact your neighborhood’s HOA leaders. These volunteer-leaders in your neighborhood want you to be informed and heard about this proposal too.

There are two resources for additional details on the proposed rental cap. You can visit fishersin.gov/rental-registration and a citizen-gathered Google Drive of information at FishersRentalCap.com.

If a rental cap is enacted in Fishers, it could support your neighborhoods’ wishes, influence our housing supply, and impact the decisions you make about your home. It is a big decision for our city, and you are invited to participate in it.

The Fishers City Council will consider the rental cap proposal and hear public feedback at the Monday, April 21 city council meeting.

Jocelyn Vare is a renter and a Fishers resident for over 25 years. She is a former at-large member of the Fishers City Council and former member of the City of Fishers Housing Task Force.