Nashville's New DADU Ordinance Effectively Bans Short-Term Rentals in Single-Family Zones

Davidson County recently adopted Ordinance No. BL2025-1007, a sweeping update to Metro Nashville's zoning code governing detached accessory dwelling units (DADUs). While the ordinance is primarily aimed at expanding where DADUs can be built, it also includes a significant restriction that property owners and investors need to understand relating to short term rental applications.

What Changed?

Newly constructed DADUs in RS single-family zoning districts are now prohibited from obtaining owner-occupied short-term rental property (STRP) permits.

In practical terms, if you're building a new DADU on an RS-zoned lot — which accounts for a large portion of Nashville's residential land — you cannot use that unit as an Airbnb, VRBO, or other short-term rental.

Where the Grey Area Lives

There is a fair amount of ambiguity in how this plays out in practice. The ordinance targets newly constructed DADUs going forward, but it does not clearly address how the restriction interacts with existing DADUs that may already hold STRP permits. Property owners with pre-existing, legally permitted short-term rentals in a DADU may have a different standing than someone building new. We have clients who have been affected by this grey area.

Additionally, the prohibition is specifically tied to RS zoning. Properties zoned R, RM, or in mixed-use and commercial districts may still be eligible for STR permits in a DADU, depending on the existing Metro STRP framework and applicable overlay regulations.

The interplay between the new DADU standards and Nashville's already complex short-term rental permitting system leaves room for interpretation, particularly around questions of nonconforming use, permit transferability, and whether certain overlay districts impose additional or conflicting requirements.

What This Means for You

If you own property in Davidson County and are considering building a DADU, converting an existing structure, or navigating Nashville's short-term rental permit process, we can help you understand how this ordinance affects your specific situation. Whether you're a homeowner exploring options for rental income, a real estate investor evaluating a deal, or a builder planning a project, it's worth getting clarity before you commit capital.

Reach out to The Law Office of Will McSeveney, PLLC, to discuss your property, your zoning, and your options.

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Phone: 615-852-7221

Email: info@mcseveneylaw.com

This blog post is for general informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship with The Law Office of Will McSeveney, PLLC. Zoning regulations are subject to change, and their application depends on the specific facts and circumstances of each property. You should consult with a licensed attorney before making any decisions based on the information provided here.