Short-Term Rental Laws in Nashville, TN (2026)
Short-term rentals are legal in Nashville (Metro Nashville-Davidson County) only with a Short Term Rental Property (STRP) permit from the Metro Codes Department, which costs $313 and must be renewed annually. The biggest restriction is zoning: new not-owner-occupied (investor) permits are banned in residential districts (AR2A, R, RS, RM) and are only issued in commercial, mixed-use, and downtown districts, while owner-occupied permits remain available in most residential zones (limited to natural persons, one permit per lot in single- and two-family districts, max four sleeping rooms). Always confirm current requirements with the city before operating.
Nashville STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short Term Rental Property (STRP) Permit |
| Permit fee | $313 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Minimum stay | 1 night |
| Total occupancy taxes | ~16.75% of gross revenue |
| Insurance | Proof of insurance evidencing homeowner's fire, hazard, and liability coverage is required with the application and each renewal; liability coverage must have limits of not less than $1,000,000 per occurrence. |
| Enforcement | Metro Codes Department enforces the STRP ordinance, monitors listing platforms, and investigates complaints. Operating (or advertising) without a permit results in enforcement action including citations and a mandatory one-year waiting period before the operator may apply for a permit. Cases are prosecuted in Environmental Court, which has issued multi-year injunctions barring operation; a Metropolitan Short Term Rental Appeals Board hears permit denial/revocation appeals (dockets are active through 2026). A local responsible party must answer calls 24/7 during every rental period, and simultaneous rental to more than one party under separate contracts is prohibited. |
| Current rules effective | 2020-07-10 |
What will guests pay in taxes on a Nashville stay?
Itemized occupancy taxes for Nashville, TN — enter your nightly rate to see the real cost breakdown.
Nashville occupancy tax calculator
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Davidson County local option sales tax (2.75%)· collection varies | $12.38 |
| Metro Nashville-Davidson County Hotel Occupancy Privilege Tax (7%)· collection varies | $31.50 |
| Total tax (16.75%) | $75.38 |
| Guest pays | $525.38 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Nashville requires Short Term Rental Property (STRP) Permit to operate a short-term rental — the fee is $313, renewed annual.
$313 due at the time the application is approved. Renewal is also $313 each year and requires proof of current property insurance and proof of Hotel Occupancy Tax payment. The fee is the same for owner-occupied and not-owner-occupied permit types.
Zoning & location rules
Two permit types with very different zoning treatment. Owner-occupied STRP: permitted as an accessory use in districts allowing residential use; the owner must be a natural person (LLCs, corporations, trusts, partnerships ineligible) who permanently resides at the property; only one permit per lot in single- and two-family zoning districts; maximum four sleeping rooms. Not-owner-occupied STRP: new permits are NOT issued in AR2A, R, RS, or RM (residential) zones and are only issued in mixed-use, office, commercial, downtown, and shopping-center districts (MUN/MUN-A, MUL/MUL-A, MUG/MUG-A, OG, OR20-OR40-A, ORI, CN, CL, CS, CA, CF, DTC, SCN, SCC, SCR); pre-ban residential permits are grandfathered for renewal but are not transferable if the property is sold. New not-owner-occupied permits also cannot be issued within 100 feet of a religious institution, school or its playground, park, or licensed day care (Metro Code 6.28.030(B)(2)(d)), unless Council grants an exemption by resolution. Since ordinance BL2025-1007 (approved Dec 8, 2025), newly built detached accessory dwelling units (DADUs) on single-family, Residential Neighborhood, or Residential Limited lots cannot be used as owner-occupied STRPs.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxApplies to rentals of less than 90 days. Marketplace facilitators (Airbnb, Vrbo) collect and remit on bookings made through their platforms; the property owner collects and remits on direct bookings. Filed with the TN Department of Revenue. | 7% | varies |
| Davidson County local option sales taxRaised from 2.25% to 2.75% effective Feb 1, 2025 by the voter-approved 0.5% transit surcharge ('Choose How You Move'), making combined sales tax 9.75%. Collected the same way as state sales tax (platform for marketplace bookings, host for direct bookings). | 2.75% | varies |
| Metro Nashville-Davidson County Hotel Occupancy Privilege Tax7% of gross receipts plus a $2.50 per room-night fee; the rate rose from 6% to 7% on July 1, 2023 (Titans stadium financing). Under T.C.A. 67-4-1502, short-term rental marketplaces (Airbnb, Vrbo) must collect and remit this local occupancy tax to the TN Department of Revenue for marketplace bookings; hosts remit directly to the Metro Collections Office (returns due by the 20th of each month) for direct bookings. Proof of Hotel Occupancy Tax payment is required at permit renewal. | 7% | varies |
Enforcement & penalties
Metro Codes Department enforces the STRP ordinance, monitors listing platforms, and investigates complaints. Operating (or advertising) without a permit results in enforcement action including citations and a mandatory one-year waiting period before the operator may apply for a permit. Cases are prosecuted in Environmental Court, which has issued multi-year injunctions barring operation; a Metropolitan Short Term Rental Appeals Board hears permit denial/revocation appeals (dockets are active through 2026). A local responsible party must answer calls 24/7 during every rental period, and simultaneous rental to more than one party under separate contracts is prohibited.
Citations for unpermitted operation carry a mandatory one-year ban on applying for a permit; secondary sources report court fines of $50 per offense with each day of operation counted as a separate offense, permit revocation after three violations, and Environmental Court injunctions of up to three years barring operation or reapplication.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Recent rule changes in Nashville
December 8, 2025material
BL2025-1007: new DADUs in single-family zones barred from owner-occupied STRP use
Metro Council's detached accessory dwelling unit (DADU) overhaul, passed on third reading Dec 4, 2025 and approved by the mayor Dec 8, 2025, provides that for newly constructed or converted DADUs on single-family, Residential Neighborhood, or Residential Limited lots, 'short term rental property-owner occupied, is not a permitted use in the accessory dwelling unit.'
Official source →February 1, 2025material
Davidson County local sales tax rose from 2.25% to 2.75% (combined 9.75%)
A voter-approved 0.5% transit surcharge on the local option sales tax took effect Feb 1, 2025, raising the combined state-plus-local sales tax on short-term rental stays in Nashville to 9.75%.
Official source →November 12, 2024material
BL2024-478 tightened owner-occupied STRP permitting
Ordinance amending Chapter 6.28, passed on third reading Nov 7, 2024 and approved by the mayor Nov 12, 2024. It restricts owner-occupied permits to natural persons (explicitly excluding trusts and other entities), expands Metro's discretion to deny permits where the owner does not permanently reside at the property (including via required residency documentation), and authorizes revocation upon transfer of ownership.
Official source →July 1, 2023material
Hotel Occupancy Privilege Tax increased from 6% to 7%
Metro's local occupancy tax on hotels and short-term rentals rose by 1 percentage point to 7% (the $2.50 per-night fee unchanged) effective July 1, 2023, to help finance the new enclosed NFL stadium. Proof of occupancy tax payment is required at STRP permit renewal.
Official source →
Frequently asked questions
›Is Airbnb legal in Nashville?
Yes — Airbnb and other short-term rentals are legal in Nashville, TN, but you must obtain a Short Term Rental Property (STRP) Permit before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Nashville?
Yes. Nashville requires a Short Term Rental Property (STRP) Permit to operate a short-term rental, which costs $313 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Nashville short-term rental permit cost?
The Short Term Rental Property (STRP) Permit costs $313 (annual renewal). $313 due at the time the application is approved. Renewal is also $313 each year and requires proof of current property insurance and proof of Hotel Occupancy Tax payment. The fee is the same for owner-occupied and not-owner-occupied permit types.
›Can I Airbnb a non-primary residence in Nashville?
Yes — Nashville does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Nashville?
Hosts in Nashville are subject to: Tennessee state sales tax (7%), Davidson County local option sales tax (2.75%), Metro Nashville-Davidson County Hotel Occupancy Privilege Tax (7%) — roughly 16.75% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Nashville?
Citations for unpermitted operation carry a mandatory one-year ban on applying for a permit; secondary sources report court fines of $50 per offense with each day of operation counted as a separate offense, permit revocation after three violations, and Environmental Court injunctions of up to three years barring operation or reapplication. Metro Codes Department enforces the STRP ordinance, monitors listing platforms, and investigates complaints. Operating (or advertising) without a permit results in enforcement action including citations and a mandatory one-year waiting period before the operator may apply for a permit. Cases are prosecuted in Environmental Court, which has issued multi-year injunctions barring operation; a Metropolitan Short Term Rental Appeals Board hears permit denial/revocation appeals (dockets are active through 2026). A local responsible party must answer calls 24/7 during every rental period, and simultaneous rental to more than one party under separate contracts is prohibited.
Nashville's STR rules changed 3 times recently.
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Related
Nearby covered cities
- Gatlinburg, TNPermit required
- Atlanta, GAPermit required
- Chicago, ILPermit required
- Destin, FLPermit required
- New Orleans, LARestricted
Sources
- Short Term Rental Property - Nashville.gov (Metro Codes)retrieved July 9, 2026
- Short Term Rental Property Frequently Asked Questions - Nashville.govretrieved July 9, 2026
- Apply for Short Term Rental Property Permit - Nashville.govretrieved July 9, 2026
- Short Term Rental Property Permit Types - Nashville.govretrieved July 9, 2026
- Legislative History of Short Term Rental Property Permits - Nashville.govretrieved July 9, 2026
- Increase of Hotel Occupancy Tax: Metropolitan Nashville-Davidson County - Nashville.gov (Finance)retrieved July 9, 2026
- Taxation of Short-Term Rental Units (Tax Manual, May 2023) - Tennessee Department of Revenueretrieved July 9, 2026
- Important Notice: Change of Local Tax Rate: Davidson County - Tennessee Department of Revenueretrieved July 9, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Nashville and a qualified professional before operating.