Short-term rentals in Nashville, explained properly.

Applies to: Owner-occupied permits

The owner must permanently live at the property and must be a natural person: LLCs, corporations, trusts and partnerships can't hold this permit. The primary residence address must match the recorded deed, and four documents proving owner-occupancy are required. In single-family and two-family zones only one permit is issued per lot; for a two-family property, the same person must own both units and live in one of them.

Applies to: Investor / non-owner-occupied properties

Allowed zones: MUN, MUN-A, MUL, MUL-A, MUG, MUG-A, MUI, MUI-A, OG, OR20–OR40-A, ORI, ORI-A, CN, CN-A, CL, CL-A, CS, CS-A, CA, CF, DTC, SCN, SCC and SCR. Not allowed in AR2a, R, RS or RM zones: existing permit holders there may renew, but the permit ends if the property is sold. New permits also can't be issued within 100 feet of a religious institution, a school or its playground, a park, or a licensed day care center or its playground (Metro Code § 6.28.030(B)(2)(d)). Metro Council can grant an exemption by resolution after a public hearing with 21 votes, as it did for 201 Lucy Lane in April 2026.

Because non-owner-occupied permits depend on zoning, confirm the property's zoning district and whether an existing permit is attached before buying. Metro Codes offers an STR property search on its website.

Both permit types need: a floor plan showing rooms, doors, windows and smoke detectors (certified by a licensed architect, engineer or home inspector for single- and two-family homes); proof of liability insurance of at least $1 million per occurrence; notice to adjacent property owners in person or by certified mail; an HOA statement (required even if there is no HOA); a responsible party living within 25 miles; and the $313 fee. Owner-occupied applications add four documents proving the owner lives there. Not-owner-occupied applications add proof that all taxes are paid, documents linking an LLC or trust to the individual owner, and a notarized affidavit. Multifamily buildings with 3+ units also need a Fire Marshal inspection.

Renewal requires the $313 fee, current proof of insurance and proof of hotel occupancy tax payment. Permits can't be transferred to another person, entity or address.

For both permit types, the responsible party must live within 25 miles of the property.

Hotel occupancy tax returns are due to Metro's Collections Office by the 20th of each month. Operators apply for an Occupancy Privilege Tax account number through Metro Finance. Airbnb collects state sales and local hotel occupancy taxes for bookings made through Airbnb; check what other platforms collect and what you must file yourself.

6% base occupancy tax plus a 1% tax effective July 1, 2023, and a $2.50 per-room-night surcharge, per Metro Finance documents. Metro's STR pages don't list the rates, so confirm with Metro's Collections Office if you file directly.

Short-term rentals under 90 days are subject to Tennessee sales tax. Davidson County's local rate rose from 2.25% to 2.75% on February 1, 2025. Marketplace platforms that meet the state threshold collect and remit it for bookings made through them.

An STR lawfully operating before a local restriction took effect can keep operating under the earlier rules if it had a permit (where required) or remitted taxes for at least 6 of the prior 12 months. That protection ends if the property is sold or transferred, goes unused for 30 consecutive months, or has 3 or more separate violations of generally applicable local laws. Local governments can still require reasonable permits.