Nashville runs one of the strictest short-term rental regimes of any major US market, and the strictness is structural rather than administrative. Every rental needs an active STRP permit before the first guest. Permits cap at four sleeping rooms. Occupancy caps at twice the sleeping rooms plus four, never above twelve. And where your property sits on the zoning map decides whether a permit exists for you at all.
This guide covers the whole framework as of August 2026, verified against Metro Codes’ short-term rental pages: the zoning gate, the two permit types, the six-step process, the taxes, the safety requirements, and the penalties. Metro moved the entire application online on March 11, 2026, so if you last looked at this before then, some of the mechanics have changed.
The Landscape
What you have to get right
Metro Nashville and Davidson County require an active Short Term Rental Property permit before you host a single night. The governing law is Ordinance BL2020-187, codified at MCO 6.28.030, and Metro Codes enforces it actively. A short-term rental is any stay under 30 consecutive days, with a maximum stay of 30 days and no compensation permitted for stays under 24 hours.
The caps and the zoning catch owners far more often than the paperwork does. A permit covers at most four sleeping rooms. Occupancy is capped at twice the permitted sleeping rooms plus four, with an absolute ceiling of twelve guests. The principal renter must be at least 21, and you cannot rent to more than one party at a time under separate contracts.
Zoning decides whether you have a business at all
New not-owner-occupied permits are issued only as a use permitted with conditions in commercial and mixed-use districts: MUN, MUL, MUG and MUI with their -A variants, OG, OR20 through OR40-A, ORI, CN, CL, CS, CA, CF, the four Downtown Code districts, and SCN, SCC and SCR. They are not permitted in AR2A, R, RS or RM, which covers most of the county’s land. Check the parcel before you buy, while you can still walk away. Is my Nashville property right for Airbnb? walks the test end to end.
The Two Permits
Owner-occupied and not-owner-occupied
| Requirement | Owner-occupied | Not owner-occupied |
|---|---|---|
| Who can hold it | A natural person who permanently resides at the property. No LLCs, corporations, trusts, partnerships or joint ventures | Any owner, including entities, subject to zoning |
| Where new permits are issued | Broadly, subject to district rules | Commercial and mixed-use districts only |
| Documentation | Four documents proving owner occupation, matching the recorded deed | Ownership information matching the recorded deed |
| Per-lot limits | One permit per lot in single-family and two-family districts | Subject to district conditions, SP and PUD properties only if the plan allows |
| Sleeping rooms | Maximum four | Maximum four |
| In residential zones | Available | Closed to new permits. Existing holders may renew, but the permit dies at sale |
The Process
Six steps to a legal Nashville short-term rental
Verify zoning and eligibility
This decides everything else. Pull your district and check it against the permitted list. If you are not the resident and the parcel is residential, stop here, because no new permit will be issued.
Choose your permit type
Owner-occupied requires a natural person who permanently resides at the property, with four documents proving it. Not-owner-occupied is the investor path and only exists in commercial and mixed-use districts.
Notify the neighbors
Applicants have to notify adjacent property owners, either through in-person conversations that produce a signature or, as most applicants do, mailed notification letters.
Apply online and pay the fee
Metro moved the process online on March 11, 2026. Submit with proof of insurance and the required documentation, and pay the $313 fee when the application is approved. Incomplete applications are not processed.
Meet the safety and listing rules
Smoke and carbon monoxide detectors, a fire extinguisher, and posted emergency contact information. Post the name and phone number of a local responsible party who answers 24 hours a day, seven days a week, and display your permit number on the listing.
Renew every year, and protect the permit
Permits expire 365 days after issue. Renewal costs $313 and requires proof of current property insurance and proof of hotel occupancy tax payment. A permit cannot be transferred, and any change of ownership cancels it.
The operating rules people forget
- Occupancy caps at twice the permitted sleeping rooms plus four, never more than 12 guests at one time
- The principal renter has to be at least 21 years old
- No simultaneous rental to more than one party under separate contracts
- No compensation for stays under 24 hours, and a 30 consecutive day maximum
- The responsible party’s name and phone number posted inside the unit, answering 24/7
- No food prepared or served to guests by the permit holder or manager
- No recreational vehicles, buses or trailers visible on the street or property in connection with the rental
- Signs must comply with Metro sign regulations, and guests must observe noise and waste rules
Taxes
What a Nashville short-term rental owes
Permit holders are responsible for collecting and remitting all applicable room, occupancy and sales taxes, and Metro requires proof of hotel occupancy tax payment at renewal, so this is not optional bookkeeping.
| Component | Rate | Notes |
|---|---|---|
| Tennessee sales tax | 9.25% combined | 7% state plus 2.25% Davidson County local option |
| Hotel occupancy privilege tax | Set by Metro ordinance | Davidson County tax on short-term stays. Metro amended the rate by ordinance in 2023, so confirm the current figure with the Metro Treasurer before relying on it |
| City per-night fee | $2.50 per room night | Flat fee per occupied room, per night |
| Business tax | Varies | Permit holders remit business taxes to the city and state alongside sales and occupancy taxes |
Platform collection is not the same as compliance
Airbnb remits some Tennessee taxes automatically on behalf of hosts. Vrbo handles it differently, and platform collection does not always cover every local component. A third party can collect and remit hotel occupancy and sales tax for you as long as the remittance clearly identifies the owner and the address. Confirm what your platform actually files, in writing, since it may not cover the whole burden.
Enforcement
What non-compliance actually costs
Metro treats failure to register as operating without a permit, and the penalty is structured to be worse than a fine.
Citations, then a year on the sidelines
- Enforcement action including citations
- A mandatory one year waiting period before you can apply and begin operating legally
- In a market where permits are the scarce asset, that year is the real cost
- Metro Codes enforces actively and complaints are easy to file
Revocation and cancellation
- Revocation on determination of three violations of any ordinance or law of general application
- Revocation if the application contained false or misleading information
- Automatic cancellation on any change of ownership, including a transfer between you and your own LLC or trust
- Expiry after 365 days if you do not renew in time
Never underwrite a purchase on the seller’s permit
An STRP permit cannot be transferred or assigned to another individual, person, entity, or address, and a change of ownership cancels it. Existing not-owner-occupied permits in residential zones can keep renewing for the current holder but are extinguished permanently at sale. If you are buying for short-term rental use, confirm the parcel qualifies for a new permit in your own name before closing.
What We Handle
Compliance is part of every management agreement
Permits and registration
We take owners through zoning verification, the online STRP application, and the documentation Metro expects, and confirm everything is in order before a listing goes live.
- Zoning and eligibility checked first
- Adjacent-owner notification handled
- Permit number on the listing from day one
Tax collection and remittance
Sales tax, occupancy tax and per-night fees tracked and reconciled against what the platforms actually collect, so renewals are never held up by a missing payment record.
- Platform collection verified at every property
- Proof of payment ready at renewal
- No year-end surprises
Safety standards
Detectors, extinguishers, posted emergency contacts, and a responsible party who answers around the clock, verified at every property.
- Readiness checks at onboarding and after turnovers
- 24/7 responsible party coverage
- Occupancy limits enforced in the listing rules
Renewals and rule changes
We track Nashville regulation changes year-round, file annual renewals on time, and tell owners when something affects their property. Nashville has amended this ordinance repeatedly.
- Renewal deadlines never left to memory
- Insurance and tax proof assembled in advance
- Owners alerted to ordinance changes that matter
Questions
Frequently asked questions
What happens if I operate without a permit in Nashville?
Metro treats failure to register as operating without a permit, which brings enforcement action including citations and a mandatory one year waiting period before you can apply and begin operating legally. In a market where permits are the scarce asset, particularly not-owner-occupied permits, that year off the market is the expensive part. A permit can also be revoked after three violations of any ordinance or law of general application, or if the application contained false information.
How much does a Nashville STRP permit cost?
The fee is $313, due when your application is approved, and the permit is valid for 12 months, expiring 365 days after issue. Renewal is another $313 plus proof of current property insurance and proof of hotel occupancy tax payment. Credit card payments carry a 2.3% processing fee, and checks are made payable to the Metropolitan Government, Codes Department.
Does Airbnb handle Nashville occupancy taxes automatically?
Airbnb remits some Tennessee taxes automatically on behalf of hosts, but Vrbo’s handling differs and platform collection does not always cover every local component. Permit holders remain responsible for collecting and remitting all applicable room, occupancy and sales taxes, and Metro asks for proof of occupancy tax payment at renewal. A third party can remit on your behalf as long as the payment clearly identifies the owner and the address.
If I buy a property with an existing STR permit, does it transfer?
No. A permit cannot be transferred or assigned to another individual, person, entity, or address, and a change in ownership cancels it, including a transfer between you and your own LLC or trust. Existing not-owner-occupied permits in residential zones can keep renewing for the current holder but end permanently at sale. Verify that the parcel qualifies for a new permit in your name before closing.
What are the occupancy and size limits?
A permit covers a maximum of four sleeping rooms, and occupancy is capped at twice the permitted sleeping rooms plus four, with an absolute maximum of 12 guests at any one time. The principal renter must be at least 21, simultaneous rentals to more than one party are prohibited, and single-family and two-family districts allow one permit per lot.
Next steps: if eligibility is the open question, run is my Nashville property right for Airbnb? If you are weighing the model itself, short-term versus a lease has the net numbers. And for where to buy, see the best areas for Airbnb in Nashville.
Sources and currency: permit types, eligible zoning districts, sleeping room and occupancy caps, operating rules, the $313 fee and 365 day term, adjacent-owner notification, transfer and revocation rules, and the one year waiting period for unregistered operation come from Metro Codes’ short-term rental pages and Ordinance BL2020-187 (MCO 6.28.030), checked August 2026. Tennessee’s 9.25% combined sales tax reflects the 7% state rate plus Davidson County’s 2.25% local option. The hotel occupancy privilege rate is set by Metro ordinance and was amended in 2023, so confirm the current figure with the Metro Treasurer. This page is a working map of the rules, not legal advice, and Metro Codes is the final word.
