Porch notes
- Anyone renting on short-term rental websites in Nashville needs a permit from Metro Codes before listing, and stays must run from 24 hours to 30 consecutive days.
- New non-owner-occupied permits are not allowed in AR2a, R, RS or RM residential zoning, according to Metro Codes.
- Non-owner-occupied rental properties are assessed as commercial, at 40 percent, rather than the 25 percent residential rate.
Nashville draws visitors all year, so many buyers wonder whether a guest room or a backyard cottage could help pay the mortgage. It can, within limits. Metro regulates short-term rentals closely, and the rules decide not only what you can do with a house but also what it is worth to you. Check them before you buy.
The basics
According to Metro Codes, anyone who wants to rent a property through short-term rental websites must get a Short Term Rental Property (STRP) permit before listing it. A few rules apply to every permit:
- No stay may be shorter than 24 hours, and no guest may stay more than 30 consecutive days.
- A permit allows a maximum of four sleeping rooms; homes with more than four bedrooms cannot be permitted.
- The principal renter must be at least 21.
- Occupancy cannot exceed twice the number of permitted sleeping rooms plus four, with a maximum of 12.
- Only one party at a time; renting to separate groups under separate contracts is not allowed.
- The permit holder must collect and remit room, occupancy and sales taxes.
The current ordinance governing short-term rentals, BL2024-478, took effect on November 12, 2024. A state law, the Short-Term Rental Unit Act of 2018, also applies.
Two kinds of permit
| Owner-occupied | Not owner-occupied | |
|---|---|---|
| Who qualifies | An owner who permanently lives at the property, as a natural person | Any owner, including companies, if the zoning allows |
| Where allowed | An owner-occupied home, or a lot with one | New permits only in certain mixed-use, office, commercial and downtown districts |
| What can be rented | Up to four sleeping rooms to one party, or part of the home with at least one bedroom and a bathroom | A unit of up to four sleeping rooms |
| Property tax class | Residential, 25 percent | Commercial, 40 percent |
Owner-occupied
To qualify, the owner must permanently live at the property and be one or more natural people. Metro is explicit that LLCs, corporations, trusts, partnerships and other entities are not eligible. In single-family and two-family zoning, only one permit is issued per lot, and for a two-family property, both units must be owned by the same person, who lives in one of them. Applicants prove residence with four documents, two from each of two lists, such as a Tennessee driver’s license and voter registration in one group and insurance or bank statements in the other. The address must match the recorded deed.
Not owner-occupied
This is the investor permit, and it is the one most often misunderstood. Metro Codes says new not-owner-occupied permits are not permitted in AR2a, R, RS or RM zoning, which are residential districts. Existing permit holders in those zones may renew, but those permits are not transferable when the property is sold. New permits are possible only as a use permitted with conditions in a list of mixed-use, office, commercial and downtown districts.
Tip: A listing that says a house “has an STR permit” does not mean you can keep renting it. Permits are tied to the owner and do not transfer, and a change in ownership, even from a person to their own LLC, cancels the permit.
Applying
Metro moved the application online on March 11, 2026. The checklist includes:
- A floor plan of each floor showing rooms, windows, doors and smoke detectors, which are required in all sleeping areas and along the exit path.
- For single-family and two-family homes, a certification from a licensed architect, engineer or home inspector that the home meets the code; buildings with shared hallways need a Fire Marshal inspection instead.
- Proof of fire, hazard and liability insurance, with liability limits of at least one million dollars per occurrence.
- Written notice to the owners of each adjacent property: front, back, sides and, where relevant, above and below.
- Proof that property taxes are paid.
The permit fee is $313, due when the application is approved, and the permit is valid for 12 months. Renewal requires the fee again, proof of insurance and proof of hotel occupancy tax payment. Operating without registering leads to enforcement, including citations and a one-year wait before you can apply.
Living with a rental
The permit holder is responsible for guests. Metro requires posting a local contact who answers calls 24 hours a day during every stay, following noise and trash rules, and keeping recreational vehicles, buses and trailers out of sight. No food may be prepared for or served to guests. Three violations can lead to the permit being revoked.
Homeowners associations
Many newer subdivisions have associations. Metro’s answer to whether an association can ban short-term rentals is yes: its rules can be stricter than Metro’s. Read the covenants before you buy if renting is part of your plan.
What it does to your tax bill
The Assessor of Property classifies properties with a not-owner-occupied permit as commercial, assessed at 40 percent of appraised value, while owner-occupied rentals stay residential at 25 percent. On the same appraisal, that is a large difference; see Davidson County Property Taxes: How Your Nashville Tax Bill Is Figured.
Check before you offer
Metro offers an eligibility viewer that shows which kind of permit, if any, a specific address can obtain. Use it, and email Metro’s short-term rental staff if the result is unclear.