This guide covers short-term rental rules for the City of Nashville (Metro Nashville and Davidson County). Neighboring markets often confused with Nashville include:
- Belle Meade: An independent city with its own STR rules, not governed by Metro Nashville ordinances.
- Berry Hill: Separate municipality with distinct STR regulations and permitting.
- Forest Hills: Has its own city government and zoning, not subject to Metro Nashville STR rules.
- Oak Hill: Another independent city within Davidson County, with separate STR requirements.
Legality Verdict
Short-term rentals are legal in Nashville with a Metro Codes permit, but non-owner-occupied permits are restricted to commercial/mixed-use zones. Enforcement is complaint-driven and rigorous. Pending state bills could impact future rules.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 3/5
- Regulatory Stability: 3/5
- Enforcement Climate: 4/5
TL;DR
Nashville defines STRs as rentals under 30 days and requires a $313 annual permit plus a business license. The total tax stack includes 7% state sales tax and up to 8% local occupancy tax. Non-owner-occupied STRs are banned in most residential zones. The biggest gotcha: existing non-owner-occupied permits in residential zones are not transferable on sale and disappear when the property changes hands.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a dwelling for less than 30 consecutive days Nashville.gov |
| Registration Required | Yes — Metro STRP permit and business license Nashville.gov |
| Permit Cost | $313 (valid 12 months) WSMV News 4 Nashville |
| Annual Renewal | Yes, $313/year for STRP permit; $15 minimal activity business license WSMV News 4 Nashville, RedAwning |
| Late Penalty | Fines up to $500/day for repeat violations StaySTRA.com |
| State Sales Tax | 7% Airbnb Help Center |
| Local Sales Tax | 1.5–2.75% Airbnb Help Center |
| Local Occupancy Tax | Up to 8% (cumulative cap; higher rates grandfathered) TNHTA |
| Total Effective Lodging Tax | Up to 8% (occupancy tax only) TNHTA |
| Total Tax Burden (all taxes) | 7% state + 1.5–2.75% local sales + up to 8% occupancy Airbnb Help Center |
| Permit Issuer | Metro Codes Department Nashville.gov |
| License Cap | Not codified — no citywide cap identified in sources reviewed Nashville.gov |
| Permit Transferability | Not codified — defaults apply; existing non-owner-occupied permits in residential zones are not transferable Nashville.gov, NASTRA |
| Permitted Zones | Owner-occupied: most zones; Non-owner-occupied: only in commercial/mixed-use (see list) Nashville.gov |
| Prohibited Zones | Non-owner-occupied: AR2A, R, RS, RM GoSummer |
| HOA/Condo Override | Statement required that STR does not violate HOA rules Rochford Law |
| Responsible Party | Must reside within 25 miles Nashville.gov |
| Minimum Stay | 1 night (no rentals under 24 hours) Nashville.gov |
| Occupancy Cap | [needs verification — call Metro Codes Department at (615) 862-6500 or https://www.nashville.gov/departments/codes/short-term-rentals] |
| Parking Requirement | [needs verification — no primary source found] |
| Enforcement Penalties | Fines up to $500/day; permit revocation for repeat violations StaySTRA.com, Checkmate Rentals |
| Last Updated | June 11, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 13.2% of gross revenue, with median Nashville, TN STRs earning $45,210 at an average daily rate of $256 and 50% occupancy. The compliance stack includes a $313 annual STRP permit, $15 minimal activity business license, and a total tax burden of up to 17.75% (7% state sales, 2.75% local sales, 8% occupancy). The binding constraint is the zoning restriction: non-owner-occupied STRs are only allowed in commercial/mixed-use districts, and existing residential permits are not transferable. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Nashville?
A short-term rental is any dwelling rented for less than 30 consecutive days Nashville.gov.
Are short-term rentals legal in Nashville?
Yes, with a valid permit from the Metro Codes Department Nashville.gov.
Does Nashville regulate STRs differently from neighboring cities?
Yes, independent cities like Belle Meade and Berry Hill have separate rules Steadily.
Licensing
Do I need a permit to operate an STR in Nashville?
Yes, a Metro STRP permit and a business license are required before listing Nashville.gov.
How much does the STR permit cost?
$313 per year as of May 2026 WSMV News 4 Nashville.
Is there a cap on the number of STR permits?
No citywide cap is codified in available sources Nashville.gov.
Are permits transferable when a property is sold?
No, especially for non-owner-occupied permits in residential zones; they expire on sale NASTRA.
Taxes
What taxes apply to Nashville STRs?
7% state sales tax, 1.5–2.75% local sales tax, and up to 8% occupancy tax Airbnb Help Center, TNHTA.
Who collects and remits these taxes?
Airbnb and similar platforms collect and remit all required taxes for bookings made through them Airbnb Newsroom.
Do hosts need to remit taxes for direct bookings?
Yes, hosts must remit occupancy taxes for bookings not handled by a marketplace TN DOR.
Operations
What zones allow non-owner-occupied STRs?
Only commercial and mixed-use zones (see full list) Nashville.gov.
Are there restrictions for owner-occupied STRs?
Yes, the owner must reside at the property and provide proof of primary residence Six1FiveLiving.
Is a local contact required?
Yes, a responsible party must reside within 25 miles of the property Nashville.gov.
Is there a minimum stay requirement?
Yes, rentals must be at least 24 hours Nashville.gov.
Enforcement
What are the penalties for operating without a permit?
Fines up to $500 per day for repeat violations StaySTRA.com.
How is enforcement handled?
Primarily complaint-driven, with inspectors matching listings to properties NASTRA.
Can permits be revoked?
Yes, for repeated violations or non-compliance Checkmate Rentals.
Are there pending changes to STR laws?
Yes, state bills SB 104 and HB 109 could further restrict local STR regulation if passed StaySTRA.com.
Permit Process
Nashville requires all STR operators to obtain a Short Term Rental Property (STRP) permit from the Metro Codes Department before listing on any platform. A business license is also mandatory, with a $313 annual permit fee and a $15 minimal activity license for most hosts. The permit is valid for 12 months and must be renewed annually. Nashville.gov, WSMV News 4 Nashville
Zoning
Non-owner-occupied STR permits are only issued in commercial and mixed-use zones, such as MUN, MUL, MUG, and others. Residential zones (AR2A, R, RS, RM) are off-limits for new non-owner-occupied permits. Owner-occupied STRs are allowed in most zones, but the owner must provide proof of primary residence. For SP or PUD zones, applicants must confirm eligibility with the Metro Planning Commission. Nashville.gov, GoSummer
Taxes and Remittance
Nashville STRs are subject to a 7% state sales tax, 1.5–2.75% local sales tax, and up to 8% local occupancy tax. Airbnb and similar platforms collect and remit these taxes for platform bookings. Hosts must remit taxes for direct bookings. All occupancy tax revenue must be used for tourism promotion and development. Airbnb Help Center, TNHTA
Enforcement and Recent Actions
Operating without a valid permit is illegal in every Nashville neighborhood. Enforcement is primarily complaint-driven, with inspectors matching online listings to physical addresses. Fines can reach $500 per day for repeat violations, and persistent non-compliance can result in permit revocation. StaySTRA.com, NASTRA
Recent Changes and Pending Legislation
Since 2022, new non-owner-occupied permits are banned in residential zones, and existing permits in those zones are not transferable. In 2026, state bills SB 104 and HB 109 are under consideration and could further restrict local STR regulation if enacted. NASTRA, StaySTRA.com
Comparable Markets
- Austin, TX: Consider if you want a large city with strict zoning and permit quotas.
- Atlanta, GA: Consider if you want a major metro with a clear permit process and high occupancy.
- Orlando, FL: Consider if you want a tourism-driven market with robust STR demand.
- Louisville, KY: Consider if you want a mid-sized city with moderate STR regulation.
Sources
- Short Term Rental Property | Nashville.gov
- Short-Term Rental Property Business License | Nashville.gov
- Apply for Business License | Nashville.gov
- Owner Occupied Short Term Rental Permit Application Checklist | Nashville.gov
- Short Term Rental Property Permit Types | Nashville.gov
- Short Term Rental Property Operation Rules and Requirements | Nashville.gov
- Tennessee Department of Revenue (SUT-48)
- UT County Technical Assistance Service
- WSMV News 4 Nashville
- Airbnb Help Center
- Airbnb Newsroom
- Tennessee Hospitality & Tourism Association
- Nashville Area Short-Term Rental Association (NASTRA)
- StaySTRA.com
- Checkmate Rentals
- Six1FiveLiving
- GoSummer
- Rochford Law & Real Estate Title
- RedAwning
- Steadily
- Law Office of Will McSeveney
- Hemlane
- MTAS – University of Tennessee Municipal Technical Advisory Service
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in Metropolitan Government of Nashville and Davidson County, Tennessee.
Ready to evaluate Nashville as an STR market?
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