FISHERS, Ind. (WOWO) — A new city law will limit how many single-family homes can be rented out in each Fishers neighborhood.

The city council passed Ordinance 022425A Monday night with full support, including from Mayor Scott Fadness.

“This is a big step to protect our neighborhoods and support homeownership,” said Fadness. “We’re ready to work with everyone as we put this in place.”

The new rule limits rentals to 10% of homes in each subdivision. Homes already being rented can stay that way, but no new rental permits will be given in neighborhoods that are over the limit.

Landlords must register single-family rentals with the city, including owner info, the address, an email, and a local contact. Not registering could mean a $250 fine. Renting in a neighborhood that’s already hit the 10% limit could bring a fine of up to $7,500.

There are some exceptions to the rule, like if someone rents to family or has to move for a job or the military.

The new rule will start next year. City leaders say it’s to stop big companies from buying lots of homes and making it harder for regular people to buy one.

Some people were worried about home prices and possible lawsuits, but the council still agreed on the rule.