This guide is being updated and reorganized for 2025-2026. Please contact us if you are interested in building a hangar.
We are working on making this guide flow better.
Download Sample Lease
Hangar Lease Key Points
- 30 Year Lease renewable up to an additional 20 years! That's 50 years total!
- The lease is transferable! If you decide to sell the hangar, the lease transfers to the next owner!
- Property Tax Exempt (exemption only applies to aeronautical purposes)
- Hangars built to a Class I Structure can Sub Lease at their discretion
What is permitted?
- Storage of active aircraft.
- Shelter for maintenance, repair, or refurbishment of aircraft, but not the indefinite storage of non-operational aircraft.
- Construction of amateur-built or kit-built aircraft provided that activities are conducted safely;
- Storage of aircraft handling equipment, e.g., tow bar, glider tow equipment, workbenches, and tools and materials used to service, maintain, repair or outfit aircraft; items related to ancillary or incidental uses that do not affect the hangars' primary use.
- Storage of materials related to an aeronautical activity, e.g., balloon and skydiving equipment, office equipment, teaching tools, and materials related to ancillary or incidental uses that do not affect the hangars' primary use; Storage of non-aeronautical items that do not interfere with the primary aeronautical purpose of the hangar (for example, televisions, furniture).
- A vehicle parked at the hangar while the aircraft usually stored in that hangar is flying, subject to local airport rules and regulations.
What is NOT permitted?
- Use as a residence. No apartments or sleeping at your hangar allowed. The FAA does distinguish between residential and crew rest areas. Crew rest areas are acceptable.
- Operation of a non-aeronautical business, e.g., limo service, car and motorcycle storage, storage of inventory, non-aeronautical business office.
- Activities which impede the movement of the aircraft in and out of the hangar or other aeronautical contents of the hangar.
- Activities which displace the aeronautical contents of the hangar or impede access to aircraft or other aeronautical contents of the hangar.
- Storage of household items that could be stored in commercial storage facilities.
- Long-term storage of derelict aircraft and parts. No Hangar Queens!
- Storage of items or activities prohibited by local or state law.
- Fuel, and other dangerous and Hazmat materials. Fuel farms must be approved and meet all Federal, State, Local, and Environmental Regulations. Fuel Farms will be subject to a flowage fee.
- Storage of inventory or equipment supporting a municipal agency function unrelated to the aeronautical use.
Hangar Land Lease and Impact Fees
Hangar Leases are based off of the following formula:
(((Hangar Square Footage) * Acre Sq Footage 43,560) * Current Property Value $50,000 per acre)/10 years = Hangar Lease
Here are some examples:
(((Hangar Square Footage) * Acre Sq Footage 43,560) * Current Property Value $50,000 per acre)/10 years = Hangar Lease
Here are some examples:
Hangar Width |
Hangar Depth |
Annual Land Lease |
One Time Impact Fee |
40 |
50 |
$500 |
$8,000 |
45 |
50 |
$500 |
$9,000 |
60 |
60 |
$500 |
$12,000 |
70 |
80 |
$550.96 |
$14,000 |
100 |
90 |
$1,033.06 |
$20,000 |
120 |
100 |
$1,377.41 |
$24,000 |
150 |
150 |
$2,582.64 |
$30,000 |
Minimum Annual Land Leases are $500 until 2030. Impact fees are a minimum of $5000 or $200/foot of width, whichever is greater.
e911 address:
Hangars at the Madison Regional Airport can have up to 3 different addresses. We have a Mailing Address, Billing Address, and e911 Address.
. |
Establish e911 Address |
Establish Physical Address |
Billing Address |
I DO want to receive mail at my hangar |
YES |
YES |
USE PHYSICAL ADDRESS OR HOME ADDRESS |
I DO NOT want to receive mail at my hangar |
YES |
NO |
USE HOME ADDRESS |
Property Tax Exemption:
A hangar is Property Tax Exempt in the State of Indiana. You will need to fill out an Application for Property Tax Exemption State Form 09284 (Form 136) in order to get the exemption. You can find that information at the link here.
This guide is a work in progress. Please let us know if you have questions or concerns. As always, we value any and all feedback!