Nashville Short-Term Rental Laws (2026)
Permits, taxes, caps, and penalties for Airbnb & vacation rentals in Nashville, Tennessee — from official sources, with citations. Reviewed 2026-07-02.
Permitted with Conditions
Nashville requires a permit before you list, and the big divide is owner-occupied (allowed in residential zones) versus non-owner-occupied (new permits only in multifamily, mixed-use, and commercial zones).
Can you operate a short-term rental in Nashville?
Metro Nashville issues two kinds of Short Term Rental Property (STRP) permits. Owner-occupied permits work in single- and two-family residential districts, but the owner must be a real person who actually lives there. Non-owner-occupied permits — the pure investment play — are no longer issued in the core residential zones (AR2A, R, RS, RM), only in a list of mixed-use, office, commercial, and downtown districts.
Permit before listing
You must hold an STRP permit from Metro Codes before advertising on any STR website. Minimum rental period is 24 hours; guests can stay a maximum of 30 consecutive days.
Owner-occupied permits
Allowed for an owner-occupied residence (or a lot with one), renting up to four sleeping rooms to a single party. The owner must be a natural person — no LLCs, corporations, trusts, or partnerships — who permanently resides at the property.
Non-owner-occupied permits are zone-restricted
New non-owner-occupied permits are only issued in MUN, MUL, MUG, MUI, OG, OR20-OR40, ORI, CN, CL, CS, CA, CF, DTC, and SCN/SCC/SCR districts. They are not permitted in AR2A, R, RS, or RM residential zones.
Size cap
An STRP is a residential dwelling unit with no more than four sleeping rooms used for transient occupancy.
Permits & licenses in Nashville
Apply through Metro Codes with proof of residency (for owner-occupied), then renew annually with proof of insurance and proof you've been paying occupancy tax.
- 1
Confirm your permit type and zoning
Check whether you qualify for owner-occupied (you live there, deed matches your primary address) or whether the property sits in a zone that allows non-owner-occupied permits.
- 2
Assemble proof documents
Owner-occupied applicants need four documents proving they live at the property, and the primary residence address must match the deed.
- 3
Apply with Metro Codes and pay on approval
The $313 permit fee is due when the application is approved (exact cash, check, or card with a 2.3% processing fee).
- 4
Get your business license and tax accounts
Permit holders must also register to remit business, sales, and hotel occupancy taxes to the city and state.
- 5
Renew annually
Renewal requires the $313 fee, proof of current property insurance, and proof of hotel occupancy tax payment.
Fees: $313 permit fee for new applications and each annual renewal (set July 1, 2019).
Short-term rental taxes in Nashville
STRs owe Metro's hotel occupancy privilege tax plus a nightly room fee, on top of Tennessee sales tax. If you book only through platforms like Airbnb, the marketplace remits occupancy tax to the state; direct bookings mean you file with Metro yourself.
| Level | Tax | Rate | Collected by | Filing |
|---|---|---|---|---|
| State | Tennessee sales tax | 7% state + local sales tax (varies by location) | Varies | Filed via TNTAP; marketplaces remit for facilitated bookings |
| City | Metro hotel occupancy privilege tax | 7% (increased from 6% on July 1, 2023) | Varies | Monthly, due by the 20th to Metro Collections for direct bookings; marketplaces remit to TN Dept. of Revenue since Jan 1, 2021 |
| City | Nightly room fee | $2.50 per room rented per night | Varies | Monthly, with the occupancy tax return |
These rules change — Nashville can amend them any month.
Compliance Watch monitors Nashville's official sources and emails you the day permits, caps, or taxes change: what changed, old vs. new, and what to do. $49/yr per property, 100% credited toward Tenby.
Watch my TN property →Operating rules
24-hour minimum stay
You cannot accept compensation for occupancy of less than 24 hours.
§ Metro Code § 6.28.030
30-day maximum stay
Guest stays are capped at 30 consecutive days — longer than that and it's a standard tenancy, not an STRP.
§ Metro STRP rules
Single-party rental (owner-occupied)
Owner-occupied permits allow rental of up to four sleeping rooms to a single party at a time.
§ Metro STRP permit types
Keep insurance current
Proof of current property insurance is required at every annual renewal.
§ Metro STRP renewal requirements
Penalties for illegal short-term rentals in Nashville
Operating without a permit or letting your renewal lapse puts your listing and your permit eligibility at risk; fines and enforcement apply under Metro code (see source).
- ⚠Advertising on an STR platform without a permit violates Metro Code § 6.28.030.
- ⚠Renewal is denied without proof of hotel occupancy tax payment, so falling behind on taxes can end your permit.
- ⚠Monthly occupancy tax returns are due by the 20th — late filing accrues liability with Metro Collections.
Official sources
- [1]Short Term Rental Property — Nashville.gov (Codes)
- [2]Short Term Rental Property Permit Types — Nashville.gov
- [3]Short Term Rental Property FAQs — Nashville.gov
- [4]Pay Short Term Rental Property Occupancy Tax — Nashville.gov
- [5]Increase of Hotel Occupancy Tax — Nashville.gov
- [6]SUT-47: Short-Term Rentals Are Subject to Sales Tax — TN Dept. of Revenue
- [7]Local Occupancy Tax — TN Dept. of Revenue
Summarized from the official sources above as of 2026-07-02. Informational, not legal advice — always confirm requirements with the jurisdiction before acting.
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