Nashville Short-Term Rental Rules: What Hosts Need to Know in 2026
Nashville issues Short Term Rental Property (STRP) permits in two tiers: Type 1 for owner-occupied units and Type 2 for investor units. Type 2 permits are heavily restricted by zoning, and the permit type decides where you can operate.
Every permit runs one year, and the city requires proof of $1,000,000 in liability insurance at application and at renewal.
Two permit tiers, two very different rulebooks
Type 1 permits cover owner-occupied units. They can be issued countywide, but the owner must be a natural person — an LLC or a trust does not qualify — and a single-family or duplex parcel gets one permit with up to 4 bedrooms.
Type 2 permits cover non-owner-occupied (investor) units. Nashville froze new Type 2 permits in residential zones in 2015, and since 2023 they are limited to 29 commercially, mixed-use, and downtown zoned districts, with a cap in each census block and a code-compliance inspection.
December 2025 (BL2025-1007) added another limit: newly built detached accessory dwelling units may not be used as owner-occupied short-term rentals.
The two permit types
The permit type determines where you can operate, not only what you pay.
Type 1 — Owner-occupied
Issued countywide to a natural person. One permit per single-family or duplex parcel, with up to 4 bedrooms. The owner must notify adjacent property owners in writing before applying.
Type 2 — Non-owner-occupied (investor)
Limited to 29 commercially, mixed-use, and downtown zoned districts and capped per census block. New permits are not issued within 100 feet of a church, school, park, or daycare unless the council grants a waiver, and the permit dies when the property is sold.
License fees
| Label | Fee |
|---|---|
| New license | $313 |
| Renewal | $313 |
Key permit rules
- Issued countywide; the owner must be a natural person (an LLC or trust does not qualify); one permit per single-family or duplex parcel; up to 4 bedrooms.
- Frozen in residential zones since 2015; since 2023 limited to 29 commercially, mixed-use, and downtown zoned districts; capped per census block; requires inspection; no new permits within 100 feet of a church, school, park, or daycare unless the council grants a waiver.
- Type 2 permits are non-transferable — a sale ends the permit, including grandfathered permits in residential zones.
- Applicants must give written notice to adjacent property owners and include proof with the application.
- December 2025 (BL2025-1007): newly built detached accessory dwelling units may not be used as owner-occupied STRPs.
Enforcement: daily fines, repeat penalties, and a reapplication ban
Operating without a permit carries a $50 per day penalty. Repeat violations can bring civil penalties of up to $500,000.
A host caught operating unlicensed cannot reapply for one year.
- Unlicensed operation: $50 per day.
- Repeat violations: civil penalties up to $500,000.
- Reapplication: barred for 1 year after operating unlicensed.
| Item | Penalty |
|---|---|
| Unlicensed operation | $50 per day. |
| Repeat violations | Civil penalties up to $500,000. |
| Reapplication ban | Barred from reapplying for 1 year after being caught operating unlicensed. |
Hotel Occupancy Tax
Combined hotel occupancy tax ~16.75%
Nashville’s combined rate is about 16.75%: 7% Tennessee state sales tax, 2.75% Davidson County local sales tax, and a 7% Metro hotel occupancy tax.
Marketplace facilitators such as Airbnb and VRBO collect and remit the tax on platform bookings.
Some third-party sources quote 13%-14% (7% plus 7%, or 6% plus 7%). After BL2022-1529 the Metro hotel occupancy tax is 7%; the rate on your registration controls.
- Collection
- Marketplace facilitators (Airbnb, VRBO) collect and remit on platform bookings.
Ranges vary — verify. Some sources quote 13%-14% (7% plus 7%, or 6% plus 7%). After BL2022-1529 the Metro hotel occupancy tax is 7%.
Permit notes
- Insurance
- $1,000,000 per-occurrence liability insurance; proof is required at application and at renewal.
- Other fees
- Metro business license, about $15-$22, issued by the County Clerk.
- Renewal requirements
- The $313 renewal, plus proof of valid insurance and a record of hotel occupancy tax payments.
Compare Nashville with other STR markets
Austin caps Type 2 licenses at 3% of each census tract’s housing stock and requires quarterly hotel tax filings. Phoenix is barred by state law from banning STRs and charges a flat annual permit fee.
Phoenix
Arizona
Allowed citywide with permit (state law bars city bans — host-friendly)
Low–moderate enforcement
New license $250
Last verified
View Phoenix rules →Scottsdale
Arizona
Licensed; Arizona law preempts local bans and occupancy caps
Moderate enforcement
New license $250
Last verified
View Scottsdale rules →Sedona
Arizona
Permit required; Arizona law sets the regulatory floor
Moderate enforcement
New license $210
Last verified
View Sedona rules →Los Angeles
California
Allowed in the host’s primary residence with registration; 120-night annual cap unless extended
High enforcement
New license $441
Last verified
View Los Angeles rules →Palm Springs
California
Allowed in single-family homes with an annual certificate; new certificates capped at 20% per organized neighborhood
High enforcement
New license — Vacation Rental $1,046
Last verified
View Palm Springs rules →San Diego
California
Licensed by tier; whole-home licenses are capped by ordinance
High enforcement
New license — Tier 1 — Part-Time $193
Last verified
View San Diego rules →San Francisco
California
Allowed only in the host’s permanent residence with registration; un-hosted stays capped at 90 nights per year
High enforcement
New license $925
Last verified
View San Francisco rules →Santa Monica
California
Home-sharing only in the host’s primary residence; un-hosted vacation rentals are unlawful
High enforcement
New license $582.25
Last verified
View Santa Monica rules →Denver
Colorado
Licensed, primary residence only
High enforcement
New license $150
Last verified
View Denver rules →Washington
District of Columbia
Licensed, primary residence only
High enforcement
New license $99
Last verified
View Washington rules →Fort Lauderdale
Florida
Licensed and inspected; annual Certificate of Compliance required
High enforcement
New license — Certificate of Compliance $880
Last verified
View Fort Lauderdale rules →Miami
Florida
Licensed and enforced; city and county requirements run in parallel
High enforcement
Last verified
View Miami rules →Orlando
Florida
Owner-occupied home sharing; whole-home rentals are limited by zoning
Moderate enforcement
New license — Home Sharing Registration $275
Last verified
View Orlando rules →Tampa
Florida
State-licensed; city rental registration repealed in 2023
Low–moderate enforcement
New license $230
Last verified
View Tampa rules →Atlanta
Georgia
Licensed, primary residence plus one additional dwelling unit
High enforcement
New license $150
Last verified
View Atlanta rules →Savannah
Georgia
Certified STVR, overlay district only, per-ward cap
High enforcement
New license $400
Last verified
View Savannah rules →Chicago
Illinois
Registered shared housing unit (31 days or fewer)
High enforcement
New license $250
Last verified
View Chicago rules →New Orleans
Louisiana
Licensed, capped, and lottery-based
High enforcement
New license — NSTR owner permit $500
Last verified
View New Orleans rules →Boston
Massachusetts
Registered, owner-occupied primary residence only
High enforcement
New license — Limited Share $25
Last verified
View Boston rules →Las Vegas
Nevada
Licensed; owner-occupied homes only (city limits)
High enforcement
New license $500
Last verified
View Las Vegas rules →New York
New York
Legal only in a registered primary residence (hosted stays)
High enforcement
New license $145
Last verified
View New York rules →Portland
Oregon
Permitted as an accessory use (primary residence required)
Moderate enforcement
Last verified
View Portland rules →Charleston
South Carolina
Licensed, primary residence only (commercial STRs only in the overlay district)
High enforcement
New license $345
Last verified
View Charleston rules →Austin
Texas
Licensed & enforced
High enforcement
New license $736.60
Last verified
View Austin rules →Seattle
Washington
Licensed; up to two units per operator
High enforcement
New license $75
Last verified
View Seattle rules →Frequently asked questions
Can I get an investor (non-owner-occupied) STR permit in Nashville?
Only in commercially/mixed-use/downtown zoned districts. New Type 2 permits are banned in residential zones (AR2A, R, RS, RM) and capped per census block elsewhere.
Is the permit transferable when I sell?
No. Permits are non-transferable — a sale terminates the permit, including grandfathered residential-zone Type 2 permits.
What does annual compliance cost?
$313 STRP renewal + ~$15-22 business license + proof of $1M liability insurance + HOT payment record.
Sources and cross-checks
Sources with links
- STR Rule Watch — Nashville (third-party aggregator, verified July 12, 2026) shortrentalrules.com
- Metro Nashville — Codes Administration nashville.gov
- RentPermitted — Nashville STR guide (cross-check, May 2026) rentpermitted.com