Nashville Short-Term Rental Permit: Owner vs Non-Owner (2026)

Yes — but it depends on whether you live there. Nashville (Metro Nashville / Davidson County) requires a Short Term Rental Property (STRP) permit for any rental under 30 days, and it splits permits into two kinds. If you permanently live at the property, a Type 1 (owner-occupied) permit is available as an accessory use in nearly every district that allows housing. If you want to run an investment property you do not live in, you need a Type 2 (non-owner-occupied) permit — and Metro no longer issues new Type 2 permits in residentially zoned neighborhoods (AR2A, R, RS, RM). The permit fee is $313.00. There is no night cap.

License / permit required	Yes — STRP permit (Type 1 or Type 2), Metro Code Ch. 6.28
Primary residence required	Yes for Type 1 (owner-occupied); no for Type 2 (investment)
Night cap	None
Permit fee	$313.00, annual (12-month term, renewable)
Lodging tax	7% hotel occupancy tax + $2.50/night, plus 9.25% sales tax
Investor whole-home allowed?	Only in non-residential zones; new Type 2 permits closed in AR2A, R, RS, RM
Last verified	2026-07-20

This page is a plain-language summary of public regulations, not legal advice. Confirm current rules with Metro Nashville before operating.

Do you need a permit?

Yes. Metro Nashville requires a Short Term Rental Property (STRP) permit to rent a residential dwelling for fewer than 30 continuous days. The rules live in Metro Code Chapter 6.28. Operating a short-term rental without a valid permit is a violation, and Metro treats an unregistered rental as an unpermitted one.

Before you apply, you must know which permit you qualify for. That single question — do you live at the property or not — decides almost everything about your rights in Nashville.

Type 1 (owner-occupied) vs. Type 2 (non-owner-occupied)

Nashville issues two permit types:

• Type 1 — owner-occupied. The owner must permanently reside at the property and must be a natural person (or persons). LLCs, corporations, trusts, partnerships, joint ventures, and similar entities are ineligible for an owner-occupied permit. This is the easy path: Type 1 is allowed as an accessory use in essentially every district that permits residential use.
• Type 2 — non-owner-occupied. This is the investment permit for a whole-home rental where the owner does not live on site. It is far more restricted, and new Type 2 permits are closed across residential Nashville (see below).

The natural-person rule is the single most common surprise for investors. If you hold your Nashville property in an LLC, you cannot use it for an owner-occupied permit — the entity itself is disqualified from Type 1. This mirrors the owner-occupied vs. non-owner-occupied split in Austin’s short-term rental license, though the two cities cap density very differently.

Where new Type 2 permits are allowed (zoning)

This is the headline rule for investors. Metro does not issue new Type 2 (non-owner-occupied) permits in properties zoned AR2A, R, RS, or RM — the residential categories that cover most of Davidson County’s neighborhoods. New Type 2 permits are issued only in certain non-residential zones: commercial, office, and mixed-use districts (for example MUN, MUL, MUG, MUI, CN, CL, CS, CA, CF, and the Downtown Code district), plus some specific plan districts.

Two important consequences:

• Existing Type 2 holders in residential zones may renew. If a property already carries a valid non-owner-occupied permit in an AR2A/R/RS/RM zone, the holder can generally apply to renew it.
• Permits are non-transferable on sale. A grandfathered Type 2 permit does not pass to a new owner. When the property sells or transfers, the permit dies with the transaction. The pool of residential-zone Type 2 permits only shrinks over time.

Practically: if you want to buy a Nashville house in a normal neighborhood and run it as a full-time Airbnb, a new Type 2 permit is almost certainly unavailable. Owner-occupied (Type 1) remains open. Always confirm a specific parcel’s zoning with Metro before you buy on the assumption of short-term rental income.

Night caps

Nashville imposes no annual night cap on permitted short-term rentals. A valid Type 1 or Type 2 permit lets you rent for the full year. The constraint in Nashville is on who may hold a permit and where — not on how many nights you book.

Permit fees

The STRP permit fee is $313.00, payable when your application is approved. The permit is valid for 12 months and must be renewed annually. The same fee applies to both Type 1 and Type 2 permits. Fees change — confirm the current amount on the Metro Codes application page before you pay.

Hotel occupancy tax and sales tax

Short-term rental operators in Nashville must collect and remit several taxes on gross rental receipts:

• Local hotel occupancy tax: 7% of gross receipts, plus a flat $2.50 per night.
• Sales tax: 9.25% (7% Tennessee state + 2.25% local).
• Permit holders are also responsible for applicable business tax obligations.

Marketplace platforms may collect some of these taxes on your behalf, but the permit holder remains legally responsible for ensuring business, sales, and hotel occupancy taxes are remitted. Confirm your specific filing duties with the Metro Treasurer and the Tennessee Department of Revenue.

HOA rules

A Metro STRP permit only addresses public regulation. It does not override private restrictions. Homeowners associations, condo declarations, and subdivision covenants can ban or limit short-term rentals regardless of your permit status, and those private rules are enforceable against you. If your property is in an HOA or condo association, read the governing documents before you apply — a valid city permit will not protect you from a private covenant.

Enforcement and penalties

Operating without a valid permit is a code violation. Metro’s civil penalties are:

• $50 per day for the first violation.
• Escalating to $500 per day for repeat offenses.

Because Metro treats failure to register as operating without a permit, an unregistered rental exposes you to the same fines. A violation can also trigger a one-year waiting period before you may reapply for a permit. Given the fines and the reapplication delay, permit first — then list.

Primary sources

• Metro Nashville Codes — STRP permit types (Type 1 vs. Type 2)
• Metro Nashville Codes — Short Term Rental Property (apply, fees, FAQ)
• Metro Code of Ordinances, Chapter 6.28 — Hotel Occupancy and Short Term Rentals

Compare short-term rental rules in other cities

Rules vary widely from one city to the next. Compare Nashville with these markets:

• Short-term rental laws by city (hub)
• Gatlinburg, TN — a far more permissive Tennessee market where whole-home investment rentals are widely allowed.
• Austin, TX — another owner-occupied vs. non-owner-occupied license system.
• Denver, CO — a strict primary-residence-only model.

Frequently asked questions

Can an LLC get an owner-occupied STR permit in Nashville?

No. A Type 1 (owner-occupied) permit requires the owner to be a natural person who permanently resides at the property. LLCs, corporations, trusts, partnerships, and joint ventures are ineligible for owner-occupied permits. An entity would need a Type 2 (non-owner-occupied) permit — which is closed to new applicants in residential zones.

Can I still get a non-owner-occupied permit in a residential Nashville neighborhood?

Generally no. Metro does not issue new Type 2 permits in AR2A, R, RS, or RM zoned properties, which covers most residential neighborhoods. Only existing Type 2 holders in those zones may renew, and those permits do not transfer when the property is sold. New Type 2 permits are available only in non-residential (commercial, office, mixed-use) zones.

Is there a limit on how many nights I can rent?

No. Nashville sets no night cap. With a valid Type 1 or Type 2 permit you may rent year-round. The restrictions apply to who qualifies and where the property is zoned, not to the number of nights.

Last verified: 2026-07-20. Rules change — confirm current requirements with Metro Nashville Codes Administration before operating.