Written by: Sanjin Hadziomerovic
Comprehensive FAQs for Short-Term Rental (STR) Regulations in Nashville, TN
Investing in short-term rental (STR) properties requires an in-depth understanding of local regulations. Below is a comprehensive list of frequently asked questions (FAQs) for STR operators and investors to help you navigate the rules in Nashville, TN and stay compliant while maximizing profitability.
1. What is considered a short-term rental in Nashville, TN?
Any property listed on short-term rental websites (e.g., Airbnb, HomeAway) for transient occupancy (typically less than 30 days) is considered a Short-Term Rental Property (STRP) and must receive a permit from the Metro Codes Department before being listed (Short Term Rental Property Permit Information).
2. Do I need a permit to operate a short-term rental in Nashville, TN?
Yes. All STRPs—whether owner-occupied or non-owner occupied—must obtain a permit from Metro Codes before listing. There are two permit types:
- Owner-Occupied Permit: The owner resides on the property while renting out one or more rooms or a portion of the dwelling.
- Non-Owner Occupied Permit: For investor-owned properties; only allowed in certain non-residentially zoned areas as listed in the District Land Use Table.
Permit fees are $313 and must be paid at the time of approval (STRP FAQs).
3. What are the zoning laws for STRs in Nashville, TN?
- Owner-occupied permits: Allowed in any residential zone where the owner lives on site.
- Non-owner occupied permits: Restricted to non-residentially zoned areas identified in the District Land Use Table (District Land Use Table PDF).
Before applying for a permit, verify that your property’s zoning classification permits your chosen permit type (STRP Permit Information).
4. Are there occupancy limits for short-term rentals in Nashville, TN?
Yes. Operation requirements specify that the maximum number of occupants must not exceed twice the number of permitted sleeping rooms plus four, with an absolute cap of 12 occupants at any one time. Simultaneous rental to more than one party under separate contracts is prohibited (Operation Requirements).
5. What taxes are short-term rental hosts required to pay in Nashville, TN?
STRP operators must collect and remit the following:
- Business Tax: As required by state and Metro Codes.
- Sales Tax (Transaction Privilege Tax): Collected on gross rental receipts.
- Hotel Occupancy Tax: As mandated by state law and Metro Code.
Detailed instructions and remittance deadlines are on the Remitting Taxes page. A third party may collect and remit these taxes on your behalf, provided the remittance clearly indicates the owner name and property address (STRP FAQs).
