STRWATCH.AI 50/50 MARKETS · UPDATED 2026-07-18 · ALL CITIES
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Is a short-term rental legal in Nashville, TN?

HEAVILY REGULATED

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.

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Sources checked2026-07-166 open items listed below

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).

What you need to operate

STRP Permit — Owner-Occupied $313 initial; $313 annual renewal
Metro Codes and Building Safety Department (zoning administrator)
Renewal: annual (expires 365 days after issuance; 30-day grace only if no documented complaints)
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.
official source
STRP Permit — Not-Owner-Occupied $313 (see needs_review)
Metro Codes and Building Safety Department
Renewal: annual (expires 365 days after issuance)
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.
official source
Proof of owner-occupancy (owner-occupied permits) Cost not verified
Metro Codes and Building Safety Department
Renewal: with each application/renewal
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.
official source
Homeowner's fire, hazard and liability insurance Cost not verified
Metro Code 6.28.030 (application requirement)
Renewal: proof required at each annual renewal
"Liability coverage shall have limits of not less than one million dollars per occurrence."
official source
Certified floor plan / inspection Cost not verified
State-licensed architect, engineer, or home inspector (single- and two-family); Fire Marshal for buildings with 3+ dwelling units
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.
official source
Adjacent property owner notification Cost not verified
Metro Code 6.28.030 (application requirement)
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.
official source
STR occupancy tax account and monthly returns Cost not verified
Metro Finance, Collections Office
Renewal: monthly returns due by the 20th of the following month
Required for direct (non-marketplace) bookings; renewal of the STRP permit requires proof of Hotel Occupancy Tax payment.
official source
TN sales tax registration (direct bookings) Cost not verified
Tennessee Department of Revenue
Owners with over $100/month in taxable sales must register and remit sales tax on bookings made outside a marketplace facilitator platform.
official source
Business tax (vacation lodging) Cost not verified
Tennessee Department of Revenue / Davidson County Clerk
Renewal: annual
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.
official source

The full picture

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.

Taxes on guests & hosts

TaxRateApplies toPlatform collectsOfficial source
Hotel Occupancy Privilege Tax (short-term rental) 7% of gross rental receipts 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). Yes source
Additional occupancy tax (room-night fee) $2.50 per room per night Each room-night rented (Metro STR tax return, Section 2) Yes source
Tennessee state sales tax 7% 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 Yes source
Davidson County local option sales tax 2.75% (2.25% + 0.5% transit surcharge effective 2025-02-01) Same base as state sales tax; combined state+local rate 9.75% Yes source
Tennessee business tax Not verified 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 No source

Enforcement

PenaltiesOperating 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 liabilitySince 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.
NotesComplaints 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.

What we could not verify (6)

  • 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

A markdown mirror of this page lives at /nashville-tn.md for AI tools and researchers.

STRWatch publishes educational information about short-term rental regulation, checked against the official sources linked above as of the date shown. It is not legal advice, and rules change — a city can move between the times we check it. For decisions with money at stake, confirm with the authority linked above or a local attorney.