Short-term rental rules · Nashville, Tennessee
Short-term rentals in Nashville, explained properly.
Short-term rentals are allowed in Nashville with an annual Metro Codes permit. If you live in the home, you can get a permit in most zones. If you don't (a non-owner-occupied permit, often called NOOSTR), new permits are only available in certain commercial and mixed-use zones (or where a property's Specific Plan zoning allows them), not in residential zones.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| STRs permitted? | Yes, with a permit (limited by zone for non-owner-occupied) [1] |
| Permit required? | Yes, Metro Codes STRP permit before listing [2] |
| Primary residence required? | Only for owner-occupied permits; new non-owner-occupied permits aren't issued in residential zones [1] |
| Maximum occupancy | 2 per sleeping room + 4, max 12 guests; max 4 sleeping rooms [3] [1] |
| Minimum / maximum stay | At least 24 hours; no more than 30 consecutive days [2] [3] |
| Permit fee | $313, renewed annually ($313) [4] |
| Occupancy tax | Metro occupancy tax 7% + $2.50 per room night, plus 9.75% sales tax (7% state + 2.75% local) [5] [6] [7] [8] [9] |
| Key restrictions | One party at a time; lead renter 21+; no food service; permit number in listing; revocation after 3 violations [3] [10] |
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Detailed rules
The full picture, section by section
Eligibility and permit types
| Owner-occupied permit | For the owner's primary residence, or a lot with an owner-occupied residence [1] 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. |
|---|---|
| Not owner-occupied permit | Only in listed mixed-use, office, commercial and downtown zones [1] [11] [12] 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. For properties zoned Specific Plan (SP) or inside a Planned Unit Development (PUD), a permit is issued only if the SP or PUD allows it; Metro Council sometimes rezones individual sites to SP specifically to allow not-owner-occupied STRs (e.g. BL2026-1268 for Fern Avenue and Elmhurst Avenue properties, effective March 27, 2026). 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. |
| Check your zone first | Eligibility depends on the property's zoning district [1] 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. |
Licensing and permits
| What the application needs | Tax proof, certified floor plan, $1M insurance, neighbor notice, HOA statement, local contact within 25 miles [13] [10] 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; proof that all taxes due (including property taxes) are paid; a notarized affidavit that the application is accurate; and the $313 fee. Owner-occupied applications add four documents proving the owner lives there. Not-owner-occupied applications add documents linking an LLC or trust to the individual owner. Multifamily buildings with 3+ units also need a Fire Marshal inspection. |
|---|---|
| How to apply | Online application (since March 11, 2026) [2] |
| Permit term and transfer | Valid 12 months; renew annually; not transferable [4] 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. |
Occupancy and operating rules
| Occupancy limit | 2 × sleeping rooms + 4, maximum 12 [3] |
|---|---|
| One party at a time | No simultaneous rentals to separate parties [3] |
| Minimum renter age | 21 [3] |
| Local responsible party | Name and phone posted inside; answers 24/7 [3] [13] [10] For both permit types, the responsible party must live within 25 miles of the property. |
| Other operating rules | No food service; no visible RVs, buses or trailers; follow noise and waste rules; meet building and fire codes [3] |
| Permit number in listings | Required [13] [10] |
Taxes
| What you must remit | Business, sales and hotel occupancy taxes [2] [14] [7] 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. |
|---|---|
| Hotel occupancy tax rate | 7% + $2.50 per room night [5] [6] [15] 6% base occupancy tax plus a 1% tax effective July 1, 2023, and a $2.50 per-room-night surcharge, per Metro Finance documents. Under Tennessee Public Chapter 364 (2025), for rental agreements entered, renewed or amended on or after July 1, 2025, the first 30 days of any stay are subject to local occupancy tax regardless of the total length of stay. Metro's STR pages don't list the rates, so confirm with Metro's Collections Office if you file directly. |
| Sales tax | 9.75% (7% state + 2.75% Davidson County) [8] [9] 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. |
Safety and insurance
| Liability insurance | At least $1 million per occurrence [13] [10] |
|---|---|
| Fire and building safety | Meet state and local building and fire codes; smoke detectors shown on floor plan [3] [10] |
Penalties
| Operating without a permit | Citations and a one-year wait before you can apply [4] |
|---|---|
| Permit revocation | After three violations, or false information on the application [3] |
Tennessee state law
| Short-Term Rental Unit Act (2018) | Protects some STRs that were operating before a local ban [16] [17] 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. |
|---|---|
| HOA rules | Can be stricter than Metro rules [4] |
Changes
Recent and pending changes
We checked Metro Codes STR pages and checklists, Metro Finance tax pages, a Metro Council Legistar API search of matters introduced since September 2025 with "short term" or "short-term" in the title, the Tennessee Department of Revenue 2025 and 2026 legislative summaries, and 2026 session wrap-ups. No pending Metro ordinance changes to the general STR rules were found. Council activity was STR Appeals Board appointments, property-specific exemptions from the 100-foot distance rule, and one site-specific SP rezoning allowing not-owner-occupied STRs. At the state level, the 2026 Department of Revenue summaries list no STR-specific tax bills, and the Private Property Vesting Rights bill (HB1837/SB1908), which could have exposed local land-use rules to compensation claims, did not pass. The 2025 session's Public Chapter 364 changed how local occupancy tax applies to longer stays.
Metro Council rezoned 14 properties from RM20-A to a Specific Plan that permits not-owner-occupied STRs. Site-specific; shows that SP zoning can allow investor permits on otherwise residential land.
Metro Council exempted one property from the 100-foot distance rule for non-owner-occupied permits. Property-specific; no change to the general rules.
A 2025 Tennessee law makes the first 30 days of any STR stay subject to local occupancy tax, even when the guest stays longer than 30 days.
A transit surcharge raised the local sales tax rate on Nashville STR stays from 2.25% to 2.75%, for 9.75% total with the state rate.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.