# Short-term rental rules in Nashville, TN

- Status: **HEAVILY REGULATED**
- Last verified: 2026-07-16 (every legal claim checked against the official sources listed below)
- Canonical page: https://strwatch.ai/nashville-tn/

## Summary

Nashville (Metro Nashville-Davidson County) allows short-term rentals only with an annual STRP permit from the Metro Codes Department, and splits them into two types. Owner-occupied STRPs (the owner, a natural person — no LLCs or trusts — permanently resides in the unit or on the lot) are allowed as an accessory use in nearly all residential zones (excluding NS districts, and new detached ADUs in RS/RN/RL districts since Dec 2025). Not-owner-occupied STRPs are allowed only in specified mixed-use, office, commercial, downtown and shopping-center districts; new not-owner-occupied permits are no longer issued in AR2A, R, RS or RM residential zones, though permits that predate the phase-out may keep renewing under Tennessee's 2018 Short-Term Rental Unit Act grandfathering but die when the property is sold. Hosts need $1M liability insurance, a certified floor plan, neighbor notification, proof of tax payment, and must display the permit number in every listing; occupancy is capped at twice the permitted sleeping rooms plus four (max 12, single party, principal renter 21+, stays between 24 hours and 30 days). Hosts owe Metro's 7% occupancy tax plus $2.50 per room-night (platforms remit local occupancy tax on marketplace bookings) and 9.75% combined state/local sales tax (platforms collect on marketplace bookings). Operating without a permit brings $50-per-day fines and a 1-3 year permit ban; three code violations can trigger permit revocation.

## At a glance

- Unhosted whole-home rental: Conditional
- Hosted rental (host present): Conditional
- Primary residence required: No
- Guest cap: 12 guests
- Rules apply to stays under: 30 days

Notes: Two permit types (Metro Code 6.28.030, enacted by BL2020-187). STRP Owner-Occupied: accessory use in all zoning districts that allow residential use excluding NS districts; owner must be a natural person permanently residing in the STRP or in a unit on the same lot; only one permit per lot in single-family and two-family districts; max four sleeping rooms. STRP Not-Owner-Occupied: permitted with conditions only in MUN/MUN-A, MUL/MUL-A, MUG/MUG-A, MUI/MUI-A, OG, OR20 through OR40-A, ORI/ORI-A, CN/CN-A, CL/CL-A, CS/CS-A, CA, CF, DTC (North/South/West/Central), SCN, SCC and SCR (Metro Code 17.16.070.U); per nashville.gov, new not-owner-occupied permits are not permitted in AR2A, R, RS, or RM zones — existing permits may renew but are non-transferable upon sale (grandfathering per Tenn. Code Ann. 13-7-603: lost on sale/transfer, 30 continuous months of non-STR use, or three violations of generally applicable local law). Occupancy max = 2x permitted sleeping rooms + 4 (nashville.gov states maximum of 12); single party only; simultaneous rental to multiple parties prohibited; principal renter must be 21+; no compensation for stays under 24 hours; maximum guest stay 30 consecutive days; no food service by permit holder; permit number must be prominently displayed in any online listing. Since BL2025-1007 (effective 2025-12-12), owner-occupied STRP is not a permitted use in newly built/converted detached accessory dwelling units on RS/RN/RL-zoned lots. HOA/condo/lease restrictions still control (Tenn. Code Ann. 13-7-605).

## Requirements

### STRP Permit — Owner-Occupied (permit)

- Authority: Metro Codes and Building Safety Department (zoning administrator)
- Cost: $313 initial; $313 annual renewal
- Renewal: annual (expires 365 days after issuance; 30-day grace only if no documented complaints)
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/frequently-asked-questions
- Notes: Owner must be a natural person (LLCs, corporations, trusts, partnerships ineligible) permanently residing on the property; application via ePermits; application valid 90 days; renewal requires proof of current property insurance and proof of Hotel Occupancy Tax payment; permits are non-transferable to another person or address.

### STRP Permit — Not-Owner-Occupied (permit)

- Authority: Metro Codes and Building Safety Department
- Cost: $313 (see needs_review)
- Renewal: annual (expires 365 days after issuance)
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/permit-types
- Notes: Issued only for properties in the eligible mixed-use/office/commercial/downtown/shopping-center districts listed in Metro Code 17.16.070.U; new permits not issued in AR2A, R, RS, RM zones; grandfathered residential-zone permits renewable but lost upon sale/transfer.

### Proof of owner-occupancy (owner-occupied permits) (other)

- Authority: Metro Codes and Building Safety Department
- Cost: not verified
- Renewal: with each application/renewal
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit
- Notes: Four current documents matching owner name and property address: two from Group A (TN driver's license, TN ID, Davidson County voter registration, IRS W-2/1099, vehicle registration/title) and two from Group B (insurance policy, pay stub, bank statement, employer verification); sent by email, not through the online application.

### Homeowner's fire, hazard and liability insurance (insurance)

- Authority: Metro Code 6.28.030 (application requirement)
- Cost: not verified
- Renewal: proof required at each annual renewal
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit/checklist
- Notes: "Liability coverage shall have limits of not less than one million dollars per occurrence."

### Certified floor plan / inspection (inspection)

- Authority: State-licensed architect, engineer, or home inspector (single- and two-family); Fire Marshal for buildings with 3+ dwelling units
- Cost: not verified
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit/checklist
- Notes: Floor plan of each floor showing rooms, doors, windows and smoke-detector locations; UL-217 smoke alarms required in sleeping areas, egress paths and every story per Metro Code 6.28.030.

### Adjacent property owner notification (other)

- Authority: Metro Code 6.28.030 (application requirement)
- Cost: not verified
- Official source: https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit
- Notes: Written notice to each adjacent owner before filing, proven by owner signature or certified/registered mail receipt; notarized affidavit, HOA-compliance statement, local responsible party within 25 miles answering 24/7, and proof of payment of property taxes also required.

### STR occupancy tax account and monthly returns (registration)

- Authority: Metro Finance, Collections Office
- Cost: not verified
- Renewal: monthly returns due by the 20th of the following month
- Official source: https://www.nashville.gov/departments/finance/division-accounts/collections/pay-short-term-rental-property-occupancy-tax
- Notes: Required for direct (non-marketplace) bookings; renewal of the STRP permit requires proof of Hotel Occupancy Tax payment.

### TN sales tax registration (direct bookings) (registration)

- Authority: Tennessee Department of Revenue
- Cost: not verified
- Official source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/short-term-rentals.pdf
- Notes: Owners with over $100/month in taxable sales must register and remit sales tax on bookings made outside a marketplace facilitator platform.

### Business tax (vacation lodging) (license)

- Authority: Tennessee Department of Revenue / Davidson County Clerk
- Cost: not verified
- Renewal: annual
- Official source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/short-term-rentals.pdf
- Notes: Rental of real property for less than 180 days is subject to Tennessee business tax; individual property owners are subject if annual taxable gross sales are $100,000 or more in a jurisdiction; if a property management company is used, it owes the business tax instead.

## Taxes

- **Hotel Occupancy Privilege Tax (short-term rental)**: 7% of gross rental receipts — applies to Occupancy of rooms/accommodations for less than 30 continuous days; under TN Public Chapter 364 (2025, effective 2025-07-01) the first 30 days of occupancy are taxable regardless of overall stay length for agreements entered/renewed on or after that date. Rate was 6% before an additional 1% took effect 2023-07-01 (BL2022-1529, Metro Code 5.12.150).; platform collects: yes. Source: https://www.nashville.gov/sites/default/files/2023-06/Short-Term-Rental-Form-taxes-payable-after-230701.pdf
- **Additional occupancy tax (room-night fee)**: $2.50 per room per night — applies to Each room-night rented (Metro STR tax return, Section 2); platform collects: yes. Source: https://www.nashville.gov/sites/default/files/2023-06/Short-Term-Rental-Form-taxes-payable-after-230701.pdf
- **Tennessee state sales tax**: 7% — applies to All rentals of accommodations for fewer than 90 continuous days, on the full sales price including cleaning fees, pet deposits, booking fees, damage-protection fees; platform collects: yes. Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/short-term-rentals.pdf
- **Davidson County local option sales tax**: 2.75% (2.25% + 0.5% transit surcharge effective 2025-02-01) — applies to Same base as state sales tax; combined state+local rate 9.75%; platform collects: yes. Source: https://www.tn.gov/revenue/news/2024/12/3/important-notice--change-of-local-tax-rate--davidson-county.html
- **Tennessee business tax**: rate not verified — applies to Gross receipts from vacation-lodging rentals of fewer than 180 days; individual owners subject only if $100,000+ annual taxable gross sales in a jurisdiction; platform collects: no. Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/short-term-rentals.pdf

## Enforcement

- Penalties: Operating without a permit: $50 fine per day imposed by a court, with each day a separate offense, plus a 1-year permit-ineligibility period for the property upon a zoning administrator determination (6 months if the lapse was a failure to renew) and a 3-year ineligibility period upon a court finding (Metro Code 6.28.030, enacted by BL2020-187). Permit revocation: after three violations of generally applicable Metro Code provisions occurring as a direct result of STRP operation, with 15 days' written notice, appealable to the Metro Short Term Rental Appeals Board (6.28.035); once revoked, no new permit for that property for one year. Advertising more occupants than permitted is itself grounds for revocation. Metro FAQ: failure to register brings citations and a mandatory 1-year waiting period. Late occupancy-tax filings accrue 8% per annum interest plus 1% per month penalty (Metro STR tax return). The 'three strikes' framework mirrors Tenn. Code Ann. 13-7-603/13-7-604, under which grandfathered status is also lost after three violations (burden of proof on the local government) and Metro may suspend use while a permit is not maintained.
- Platform liability: Since 2021-01-01, short-term rental unit marketplaces (e.g., Airbnb, Vrbo) must register with the TN Department of Revenue and collect and remit local occupancy taxes on marketplace bookings (Public Chapter 787 (2020); TN DOR notice 10/30/2020); marketplace facilitators also collect and remit state and local sales tax, relieving hosts for platform bookings (TN DOR STR tax manual, June 2025). Hosts remain liable for all taxes on direct bookings. Metro's permit/advertising rules (permit number displayed in listings) bind the operator/owner; no verified Metro ordinance imposes listing-removal duties on platforms.
- Notes: Complaints trigger written/email notice to the permit holder; complainants must be warned that false complaints are punishable as perjury under Tenn. Code Ann. 39-16-702. Metro Codes' stated current enforcement emphasis (per local reporting) is owner-occupied permits held on non-primary residences.

## Not yet verified (we say so instead of guessing)

- Not-owner-occupied permit fee: nashville.gov FAQ states a single '$313.00' STRP permit fee without distinguishing permit types; a separate not-owner-occupied fee schedule could not be verified, so $313 is assumed to apply to both types.
- BL2024-478 (passed Nov 2024) amended the owner-occupancy documentation rules in Metro Code 6.28.030.A.3.b.iv (Legistar summary suggests a higher document count than the four listed on nashville.gov); current nashville.gov application pages state four documents (2 Group A + 2 Group B), which is used here. The codified current text could not be checked because library.municode.com returns HTTP 403.
- The additional 1% hotel occupancy tax (bringing the rate to 7%) was contingent on Sports Authority stadium revenue bonds being issued by 2024-01-01 (per Metro Finance news page); Metro's currently posted STR tax return charges 7%, indicating the condition was satisfied, but the bond issuance itself was not independently verified.
- No pending 2025-2026 state STR legislation could be verified: third-party guides cite 'SB 104/HB 109' as pending TN preemption bills, but official capitol.tn.gov records show SB0104 (114th GA) is a wine and grape board act (enacted as Public Chapter 40) and HB0109 concerns financial institutions; the 114th General Assembly had adjourned by late May 2026. pending_changes is therefore empty.
- Davidson County business tax license cost and classification for STR owners not verified against an official source (cost left null).
- Metro STR occupancy tax exemption wording ('tenant occupying for thirty or more continuous days is not required to pay the tax after the thirtieth day', per Metro Collections page) predates TN Public Chapter 364 (2025); the interaction shown here (first 30 days taxable for agreements on/after 2025-07-01) follows the state DOR notice, but Metro's own pages have not been observed to restate it.

## Sources

- Short Term Rental Property Permit Types — Nashville.gov (Codes) (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/permit-types
- Apply for Short Term Rental Property Permit — Nashville.gov (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit
- Owner Occupied STRP Application Checklist — Nashville.gov (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit/checklist
- STRP Operation Rules and Requirements — Nashville.gov (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/operation-rules-and-requirements
- STRP Frequently Asked Questions — Nashville.gov (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/frequently-asked-questions
- Substitute Ordinance BL2020-187 (current STRP law; Metro Code 6.28.030, 6.28.035, 17.16.070.U, 17.16.250.E) (official, accessed 2026-07-16): https://www.nashville.gov/sites/default/files/2022-03/Substitute-BL2020-187.pdf
- Legislative History of STRP Permits — Nashville.gov (official, accessed 2026-07-16): https://www.nashville.gov/departments/codes/short-term-rentals/legislative-history
- Pay Short Term Rental Property Occupancy Tax — Nashville.gov (Finance Collections) (official, accessed 2026-07-16): https://www.nashville.gov/departments/finance/division-accounts/collections/pay-short-term-rental-property-occupancy-tax
- Metro Short-Term Rental Tax return form (taxes payable after July 1, 2023): 7% + $2.50/room-night (official, accessed 2026-07-16): https://www.nashville.gov/sites/default/files/2023-06/Short-Term-Rental-Form-taxes-payable-after-230701.pdf
- Increase of Hotel Occupancy Tax (6% to 7%, eff. 2023-07-01; BL2022-1529) — Nashville.gov Finance (official, accessed 2026-07-16): https://www.nashville.gov/departments/finance/news/increase-hotel-occupancy-tax-metropolitan-nashville-davidson-county
- Tennessee Public Chapter 972 (2018) — Short-Term Rental Unit Act, T.C.A. 13-7-601 to 13-7-606 (TN Secretary of State) (official, accessed 2026-07-16): https://publications.tnsosfiles.com/acts/110/pub/pc0972.pdf
- TN Dept. of Revenue — Taxation of Short-Term Rental Units manual (June 2025) (official, accessed 2026-07-16): https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/june-2025/short-term-rentals.pdf
- TN DOR Important Notice — Short-Term Rental Unit: 30-Day Occupancy (Public Chapter 364, 2025) (official, accessed 2026-07-16): https://www.tn.gov/revenue/news/2025/5/7/important-notice--short-term-rental-unit--30-day-occupancy.html
- TN DOR Important Notice — Change of Local Tax Rate: Davidson County (2.75% eff. 2025-02-01) (official, accessed 2026-07-16): https://www.tn.gov/revenue/news/2024/12/3/important-notice--change-of-local-tax-rate--davidson-county.html
- TN DOR Important Notice — Short-Term Rental Unit Marketplaces (Public Chapter 787, 2020; eff. 2021-01-01) (official, accessed 2026-07-16): https://www.tn.gov/revenue/news/2020/10/30/important-notice--short-term-rental-unit-marketplaces.html
- Metro Council Legistar — BL2024-478 (amendments to Chapter 6.28; passed 2024-11-07, approved 2024-11-12) (official, accessed 2026-07-16): https://nashville.legistar.com/LegislationDetail.aspx?ID=6808164&GUID=E7353AF1-D9EA-43D0-BC43-8A0805D19C9C
- Metro Council Legistar — BL2025-1007 (DADU ordinance; owner-occupied STRP not permitted in new DADUs; effective 2025-12-12) (official, accessed 2026-07-16): https://nashville.legistar.com/LegislationDetail.aspx?ID=7639644&GUID=45E2F5DA-7D4A-4979-98DE-40BD2B8833CE
- TN General Assembly — SB0104 (114th GA) bill record (used to debunk third-party claims of a pending STR preemption bill) (official, accessed 2026-07-16): https://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB0104&GA=114

---
Educational information, not legal advice. Published by STRWatch (Laniakea Technologies LLC).