Nashville STR Rules

Nashville uses a two-tier permit system. Owner-occupied STRs (Type 1) can operate anywhere permits are issued. Non-owner-occupied STRs (Type 2) are restricted to commercial or mixed-use zones and the city has imposed a cap.

Permit Requirements

Key Rules for Nashville STR Hosts

• ✓Type 1 permit: owner lives on property — allowed in most zones
• ✓Type 2 permit: non-owner-occupied — restricted to commercially-zoned areas
• ✓Type 2 permits are capped and have a waitlist
• ✓Annual permit fee: $312 (Type 1) or $414 (Type 2)
• ✓No party houses — violations result in permit revocation
• ✓Must meet occupancy and safety standards
• ✓State sales tax + hotel/motel tax must be collected

How to Get Started in Nashville

1. 1Determine permit type needed (owner-occupied vs. non-owner-occupied)
2. 2Apply at nashville.gov/departments/codes/short-term-rentals
3. 3Submit property inspection documentation
4. 4Pay annual permit fee ($312 or $414)
5. 5Register with TN Department of Revenue for state sales/hotel tax
6. 6Display permit number on listing

Tax Breakdown

Estimated effective rate: ~15.25%

• •TN State Sales Tax: 7%
• •Nashville Hotel/Motel Tax: 6%
• •Nashville Privilege Tax: 2.25%
• •Total: ~15.25%

Note: Airbnb and VRBO typically collect and remit state and city taxes on behalf of hosts in these markets. Verify your platform's tax collection policy.

Also check the TN state guide for state-level tax registration, HOA rules, and preemption status.