LicensedRental

Bedford County, Tennessee

Unincorporated Bedford, TN vacation rental requirements

Outside the cities, Bedford County allows short-term rentals only by special exception from the Board of Zoning Appeals in the A-1, R-1, R-2, R-3, and C-1 districts, and never inside a city growth boundary or a platted subdivision. Taxes are 9.75% sales tax plus 7% occupancy tax.

Checked against official sources November 5, 2026

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Zoning
Special exception (BZA)
A-1, R-1, R-2, R-3, and C-1. Then a zoning compliance certificate.Source
Where not allowed
Growth boundaries and subdivisions
Any municipal urban growth boundary, or any platted subdivision, PUD, or cluster development.Source
Maximum guests
2 per room + 4, up to 10
Whichever is less.Source
Taxes
9.75% sales tax + 7% occupancy tax

The 2023 zoning resolution doesn’t list a fee for the special exception. Ask the county planning office.

Your licensing checklist

In order: the state, the county, then the town.

State of Tennessee

  1. Register for sales tax

    Register through the Tennessee Taxpayer Access Point (TNTAP). One registration covers all your rentals in the same city or county. If you take direct bookings, collect 7% plus the local rate and file by the 20th of each month. Once registered, file every month, even a $0 return.Source

    TNTAP →

  2. Get a business tax license

    Rentals under 180 days owe business tax. With $3,000 to $100,000 a year in gross receipts in a city or county you need a minimal activity license; at $100,000 or more, a standard license. Booking platforms don’t handle this for you.Source

  3. Know what the platform collects

    Airbnb, VRBO, and other marketplaces collect and remit sales tax and local occupancy tax on their bookings. Keep records showing they did. For direct bookings, you pay sales tax to the state and occupancy tax to the city or county.Source

  4. Then your county and city

    Permits, zoning, and occupancy tax rates are where Tennessee towns differ most. Pick your area.

Bedford County, Tennessee

  1. Pick your area

    Inside Shelbyville, use the city page. Outside the cities, read the unincorporated page before you buy or list.

Bedford County (unincorporated areas)

  1. Check your location

    Confirm the parcel is outside every city’s urban growth boundary and isn’t in a platted subdivision, PUD, or cluster development. If it is, the zoning resolution doesn’t allow a short-term rental there.Source

  2. Apply for a special exception

    The Board of Zoning Appeals hears each request. Ask what conditions may come with approval.Source

  3. Meet the standards for a zoning compliance certificate

    The rental must be run by the owner or a licensed management company, and guests must sleep in the main house in rooms not built or remodeled for renting. You need Health Department approval that the septic system can handle the bedrooms, and an approved evacuation plan posted on each floor.Source

  4. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax + 7% occupancy tax. Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax with the state through TNTAP by the 20th of each month. Ask Bedford County where to file the 7% county tax on direct bookings.Source

Inspection checklist

What the inspector looks for, from Bedford County (unincorporated areas)’s published checklist.

  • Smoke detectorsHard-wired with battery backup in each sleeping room.Source
  • Fire extinguisher10 lb or larger, easy to reach on each floor.Source
  • Evacuation planApproved before the certificate is issued and posted on each floor.Source

House rules for guests

Parking
1 space per room rented
On top of the home’s own spaces, screened, and not in the front yard.Source
Cooking
Not in guest bedrooms
Microwave kitchenettes are fine.Source
Sign
One, up to 8 sq ft
At least 15 feet from the right-of-way.Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.