Short-Term Rentals in Nashville and Davidson County: What You Can and Can't Do With A Permit

As of February 2026

Nashville's booming tourism industry makes it one of the most attractive short-term rental markets in the country. But before you list a property on Airbnb, VRBO, or any other platform, you need to understand what Nashville and Davidson County actually do and do not allow. The rules have changed significantly in recent years, and getting it wrong can be costly.

What Is a Short-Term Rental?

Under Tennessee and Metro Nashville law, a short-term rental (STR) is a residential dwelling unit (or a portion of one) that is rented out for a period of less than 30 consecutive days.

If you are renting out a home, a condo, a room, or any other residential space to guests on a nightly or weekly basis, you are operating a short-term rental.

Nashville requires that anyone wishing to operate an STR obtain a Short-Term Rental Property (STRP) permit from the Metro Codes Department before listing the property on any platform.

If you list before you have a permit in hand, you become ineligible to apply for one for a full year. If you operate one illegally, you will more than likely be found out eventually.

Two Types of Permits: Owner-Occupied vs. Non-Owner Occupied

Nashville recognizes two categories of STR permits, and the distinction between them matters.

An owner-occupied STR is one where the property owner permanently resides at the property. The owner might rent out a spare bedroom, a guest suite, or even the entire home while they are temporarily away. To qualify, the owner must be a natural person (not an LLC, corporation, trust, or other entity), and must provide documentation proving that the property is their primary residence.

A non-owner occupied (NOO) STR is generally an investment property. The owner does not live there; the property exists solely or primarily as a rental. The owner must designate a local responsible party available within a 25-mile radius of the property. Ownership information on the application must match the deed on file with the Davidson County Clerk's office.

Who Can Get a Permit Today — and Who Cannot

This is where things have tightened considerably. As of the date of this article, here is the lay of the land:

Owner-occupied permits remain broadly available. If you live in your home and want to rent it (or part of it) on a short-term basis, you can generally obtain a permit in any zoning district that allows residential use, with the exception of NS (Neighborhood Landmark) districts and certain Specific Plan or Planned Unit Development areas that may have their own restrictions.

Non-owner occupied permits are a different story. New NOO permits are no longer available in residential zoning districts.

Specifically, Metro Nashville does not issue new non-owner occupied permits in AR2A, R, RS, or RM zoned properties.

This means that if you are looking to purchase a home in a typical Nashville neighborhood, such as East Nashville, Germantown, The Nations, Sylvan Park, 12 South, and similar areas, with the intention of operating it purely as a short-term rental investment, you will very likely not be able to obtain a new NOO permit.

New non-owner occupied permits are currently only issued in certain commercially zoned or mixed-use districts, including MUN, MUL, MUG, MUI, OG, OR20 through OR40-A, ORI, CN, CL, CS, CA, CF, DTC (Downtown Code) districts, SCN, SCC, and SCR zones.

What about existing NOO permits in residential zones? They are grandfathered. Tennessee's Short-Term Rental Unit Act, which took effect in 2018, provides that the rules in place at the time a property first began operating as an STR and obtained its permit will continue to govern that property so long as ownership does not change. This means that existing NOO permit holders in residential zones can continue to renew their permits and operate legally.

However, if the property is sold or transferred, the grandfathered status is generally lost, and the new owner would not be eligible for a new NOO permit in that zone under current rules.

Why Legal Guidance Matters

If you are considering purchasing a property in Nashville or Davidson County for the purpose of operating a short-term rental, consulting with an attorney who understands the local regulatory landscape is not just a good idea as it can save you from a very expensive mistake.

Nashville's STR rules involve an intersection of Metro zoning codes, state legislation, permit regulations, and property-specific factors such as overlays, Specific Plans, and PUD conditions.

Beyond the government regulations, many properties are also subject to private restrictions (HOA covenants and bylaws, condominium declarations, and deed restrictions) that can independently prohibit or limit short-term rental use regardless of whether the Metro government would issue a permit.

An attorney experienced in this area can help you interpret these documents, evaluate whether a property actually qualifies for the type of permit you need, and identify risks before you close on a purchase.

Schedule a Free Consultation

If you have questions about short-term rental permits, zoning, HOA restrictions, or any other aspect of buying or operating an STR property in Nashville, we are happy to help. We have helped numerous investors and home owners obtain rental permits an evaluate a property's ability to obtain a permit.

You can schedule a free consultation at www.mcseveneylaw.com.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Short-term rental regulations are subject to change. For guidance specific to your situation, please consult with a qualified attorney.