Short-Term Rental Laws in Nashville, Tennessee

Nashville uses a two-tier permit system: Type 1 (Owner-Occupied) STRs are allowed in nearly all residential zones citywide — the operator must reside in the unit as primary residence. Type 2 (Non-Owner-Occupied) STRs are restricted to commercial and mixed-use zones only (CS, CM, MUI, MUL, MUN, MUG, MUL-A) — Type 2 permits in standard residential zones (R-1, R-2, RS, RM) are not issued except for properties holding continuously-renewed grandfathered permits. The 2018 Tennessee STR Unit Act prevents Nashville from banning STRs outright but permits the zoning-class restriction on Type 2.

Type 1 (Owner-Occupied): allowed in all residential and mixed-use zones provided primary-residence test is met. Type 2 (Non-Owner-Occupied / Investor): allowed only in CS Commercial Service, CM Commercial Mixed, MUI/MUL/MUN/MUG/MUL-A Mixed-Use districts, and certain other non-residential overlays. Properties in R-1, R-2, RS, RM, etc., cannot get a new Type 2 permit. Grandfathered Type 2 permits in residential zones continue but cannot be transferred to a new owner without conversion to Type 1.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Metro Codes Department administers the STRP (Short-Term Rental Property) permit program. Annual renewal. Operating without a permit: fines up to $500 per day for repeat violations. Codes Department actively cross-references Airbnb/Vrbo listings against the STRP registry. Type 1 permits require annual primary-residence re-verification (driver's license + utility bills). Type 2 permits in commercial zones are renewable but the underlying zoning eligibility is re-verified at each renewal.

Combined short-term lodging tax in Nashville is approximately 15.250% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Tennessee State sales tax 7% + Davidson County Hotel Occupancy Privilege Tax 6% + state/local fee additions — combined ~15.25% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.