Nashville Short-Term Rental Rules and Regulations: 2026 Compliance Guide

Alex
Jun 4
7 min read

Short-term rentals in Nashville sit under two layers of rules: Metro Codes permits and zoning, and Tennessee state law. This guide covers permits, zoning, renewals, operating rules, taxes, enforcement, and what can get a permit revoked.

The Big Picture

You must hold a Metro Codes STR permit before you list on Airbnb, Vrbo, or any platform. No permit, no listing.

Two permit classes only: Owner-Occupied (OO) and Not Owner-Occupied (NOO). The rules diverge sharply between them.

Hard cap: four sleeping rooms per permit. A home with five or more bedrooms cannot be permitted as an STR.

Max occupancy is twice the permitted sleeping rooms plus four, never more than 12.

Permits are annual and non-transferable. They end on sale or any change of ownership entity.

New NOO permits are banned in nearly all residential zones. Buildable supply is locked to specific commercial, mixed-use, and downtown zones.

Tennessee State Law: The Floor and the Ceiling

Tennessee's Short-Term Rental Unit Act (TCA 13-7-601 to 606, effective May 17, 2018) sets what Metro can and cannot do.

The floor: a city cannot outright ban STRs based on classification, use, or occupancy.

The Legacy (Grandfather) Clause, 13-7-603(a): a new local rule does not apply to a property already operating as an STR before that rule took effect. This is why pre-2018 NOO operators in residential zones can keep going.

Legacy status is fragile. It ends if the property changes hands or stops operating as an STR for 30 continuous months.

The three-strike override, 13-7-604(a): state protection falls away once a unit has violated local laws three or more separate times with no appeal rights left. Burden of proof is on the city.

HOAs win, 13-7-605: the Act does not preempt private restrictions. HOAs, condos, and co-ops can ban or restrict STRs regardless of any Metro permit.

False-complaint shield, 13-7-604(c): a knowingly false complaint is perjury under TCA 39-16-702, and Metro must post that warning.

Permit Types and Eligibility

Owner-Occupied (OO)

Owner must permanently reside at the property, or in an adjacent unit on the same lot.

Must be a natural person. LLCs, corporations, trusts, partnerships, and joint ventures are ineligible for OO permits.

Up to four sleeping rooms to a single party. The residence address must match the recorded deed.

One permit per lot in single-family and two-family zoning districts.

Two-family units cannot be split in ownership: same owner, and one unit must be the owner's primary residence.

Not Owner-Occupied (NOO)

Up to four sleeping rooms, rented to a single party at a time.

Entity ownership (LLC, trust) is allowed, but you must supply Articles of Organization or linking documents tying the individual to the entity, and ownership must match the deed.

New NOO permits are heavily zone-restricted (see the next section).

Zoning: Where Non-Owner-Occupied STRs Can Exist

This is the biggest gate for investors.

New NOO permits are issued only as a use permitted with conditions in these zones: 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, DTC South, DTC West, DTC Central, SCN, SCC, and SCR.

New NOO permits are not permitted in AR2A, R, RS, or RM, which cover the bulk of Nashville's residential land.

Existing NOO holders in those zones may renew, but the permit is not transferable if the property is sold or transferred. On sale it is gone for good.

100-foot proximity rule for new NOO: no new NOO permit within 100 feet of a religious institution, a school or its playground, a park, or a licensed daycare or its playground. Council can grant an exemption only by resolution after a public hearing with 21 affirmative votes.

SP and PUD properties: NOO is allowed only if the Specific Plan or Planned Unit Development expressly permits it. Confirm with Metro Planning.

OO is widely allowed across residential zones, and is the path for residential-zone hosting.

HOA and condo bylaws can be stricter than Metro and frequently ban STRs outright. Check these first.

How to Get a Permit

Apply through Metro Codes. You must have the permit before listing.

Permit fee is $313. A 2.3% surcharge applies to card payments; exact cash or check in person.

Business licensing: county and city business licenses, plus Tennessee business tax registration for operators over $10,000 in annual gross receipts.

Liability insurance: $1,000,000 minimum per occurrence (fire, hazard, and liability). Airbnb's host
coverage may satisfy this in some cases.

Certified floor plan of every floor showing all rooms, walls, doors, windows, and smoke detectors. For single- and two-family dwellings it must be certified by a licensed architect, engineer, or home inspector.

Smoke detectors, UL217 certified, in all sleeping areas, every room along the egress path, and each story including basements and garages.

Adjacent-owner notification before applying: written notice by certified mail or in person to owners in front, behind, to the sides, and above and below. Proof is required. Plan for about a 20-day window.

Proof of ownership matching the deed, plus proof that all taxes are paid, including property taxes.

Realistic timeline is about 9 to 14 weeks end to end, with roughly 4 to 6 weeks of Metro processing. Rejections restart the clock.

Renewals

Permits are valid 365 days and must be renewed before the expiration date.

Metro no longer mails renewal notices. Codes emails the permit holder and the contact on file 60 days before expiration, then again at 45 days if not yet renewed.

Renewal is a notarized affidavit upload plus the $313 fee online.

No new permit document is issued on renewal; the existing permit is extended one year.

Renewing on time is entirely the permit holder's responsibility. Metro does not advertise a grace period, and a lapse can force a brand-new application. In residential zones an NOO permit cannot be re-applied for.

Operating Rules

Occupancy cap: twice the permitted sleeping rooms plus four, max 12.

Principal renter must be 21 or older.

No stays under 24 hours. Maximum stay is 30 consecutive days.

One party at a time. No simultaneous rentals under separate contracts.

A local responsible party name and phone must be posted inside the unit and answer calls 24/7 during every stay.

No food prepared for or served to guests by the host or manager.

No RVs, buses, or trailers visible on the street or property in connection with the rental.

Noise and waste ordinances apply, and the permit holder is responsible for guest behavior.

The permit is not transferable or assignable, and only the named person may operate it.

Collect and remit all room, occupancy, and sales taxes.

Taxes

Local hotel occupancy tax is 7% of gross receipts (raised from 6% on July 1, 2023), plus a $2.50 per night flat fee.

Sales tax is 9.25% total (7% state plus 2.25% local).

Combined burden is roughly 16.25% plus $2.50 per night.

Business tax (county and city) applies to operators over the gross-receipts threshold.

Airbnb and Vrbo automatically collect and remit Tennessee state and local sales and occupancy taxes for hosts. You are still responsible for business tax, registration, and confirming remittance.

Occupancy tax returns are due to the Metro Collections Office by the 20th of each month.

One percent of the local occupancy tax is dedicated to the Barnes Housing Trust Fund.

Enforcement and Penalties

Enforcement is complaint-driven and proactive. The report channel is hubNashville and 311, and Codes actively scans Airbnb and Vrbo, often using third-party monitoring to find unpermitted listings.

$50 per day for operating without a valid permit.

Escalation path: citation or abatement notice, a short cure period, escalating penalties, permit suspension, then revocation.

Environmental Court prosecution is the hammer for ignored warnings, and can lead to a multi-year injunction barring operation.

Over-occupancy advertising is actively policed, even when a listing only markets a higher headcount than allowed.

What Can Get You Banned

Three violations of any ordinance or law of general application: permit revoked by Codes or a court. This includes general nuisance items like noise and trash, not just STR-specific rules.

Operating without a permit: a mandatory one-year wait before you can apply, less only with Board of Zoning Appeals relief, if you comply with the warning.

Ignoring the warning and continuing to operate: Environmental Court can impose an injunction barring you from operating or even applying.

Any change of ownership voids the permit, including moving title from a person to an LLC or trust or back. In residential zones an NOO permit cannot be re-issued, so this is permanent.

Selling an NOO property in R, RS, RM, or AR2A, or letting that permit lapse: gone, not renewable, not transferable.

Letting a legacy unit sit idle 30 or more continuous months: grandfather protection dies and current restrictions apply.

Watch-Outs for STR Operators

Track every expiration centrally. Metro only emails renewal notices, at 60 and 45 days. A missed inbox can mean a lapse and, for a grandfathered NOO unit, permanent loss.

Treat entity changes as permit-killers. LLC restructures, estate transfers, refinancing into a new entity, and person-to-trust moves all void permits and trigger a re-file or permanent loss in residential zones.

Protect legacy status. Do not let a grandfathered unit go dark for 30 or more months, and remember any sale ends it.

HOA and condo rules override Metro. Many condo buildings ban STRs outright regardless of a valid permit. Diligence this before buying.

Confirm zoning before you buy. Only the specific commercial, office, mixed-use, downtown, and shopping-center zones allow new NOO.

The three-strike clock counts general code violations. Repeated noise or trash complaints can stack toward revocation.

Keep the compliance file accessible: displayed permit, $1,000,000 insurance, monthly tax filings, floor plan, and responsible-party posting.

Official Resources and Contacts

Metro Codes and Building Safety: 800 President Ronald Reagan Way, 1st Floor, Nashville, TN 37210. Main 615-862-6500, STR line 615-862-7190.

STR program hub: https://www.nashville.gov/departments/codes/short-term-rentals

Permit types and zoning list: https://www.nashville.gov/departments/codes/short-term-rentals/permit-types

Apply for a permit: https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit

Renew a permit: https://www.nashville.gov/departments/codes/short-term-rentals/renew-short-term-rental-property-permit

Use and occupancy taxes: https://www.nashville.gov/departments/codes/short-term-rentals/use-and-occupancy-taxes

File a complaint: https://www.nashville.gov/departments/codes/short-term-rentals/file-complaint

Tennessee Short-Term Rental Unit Act summary: https://www.mtas.tennessee.edu/reference/summary-short-term-rental-unit-act

This guide is for general information only and reflects rules as of June 2026. Short-term rental regulations change frequently. Confirm current requirements with Metro Codes and a qualified professional before acting.