LicensedRental

Davidson County, Tennessee

Nashville, TN vacation rental requirements

Nashville requires a $313 yearly short-term rental property (STRP) permit, $1 million liability insurance, and a 24/7 responsible party within 25 miles. Owner-occupied permits are allowed wherever homes are; new non-owner-occupied permits are only allowed in mixed-use, office, commercial, and downtown zones, not in AR2a, R, RS, or RM. Guests are capped at twice the bedrooms plus four (12 at most).

Checked against official sources November 5, 2026

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STRP permit
$313 a year
Paid at approval and at each renewal; 2.3% fee on card payments. Expires 365 days after issue.Source
Non-owner-occupied
Banned in AR2a, R, RS, RM
New permits only in MUN, MUL, MUG, MUI, OG, OR20–OR40-A, ORI, CN, CL, CS, CA, CF, DTC, SCN, SCC, SCR (and -A versions). Existing permits there can renew but end on sale.Source
Owner-occupied
Owner’s primary residence
Natural persons only (no LLCs or trusts); one permit per lot in one- and two-family zones; can’t advertise the whole home.Source
Insurance
$1 million per occurrence
Homeowner’s fire, hazard, and liability coverage.Source
Maximum guests
2 per sleeping room + 4 (max 12)
No more than 4 sleeping rooms; one party at a time.Source
Taxes
9.75% sales + 7% occupancy + $2.50/night

Operating without a permit carries a $50 fine per day and a one-year wait before you can get a permit (three years after a court finding). Three violations of the Metro Code can lead to revocation.

We found no numeric cap on permits in the current code. The limits are the zoning ban on new non-owner-occupied permits, one owner-occupied permit per lot in one- and two-family zones, and the four-sleeping-room limit.

Airbnb says it collects state sales tax and local hotel occupancy tax for Tennessee hosts. Business tax isn’t collected by platforms.

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.

Metropolitan Government of Nashville and Davidson County

  1. Check which city you’re in

    Most of the county is Metro Nashville. Belle Meade, Berry Hill, Forest Hills, Goodlettsville, and Oak Hill are separate cities with their own zoning, so Metro’s permit rules don’t decide what’s allowed there.

  2. Then your city

    Pick your area.

Metro Nashville (Metropolitan Government of Nashville and Davidson County)

  1. Confirm your permit type and zoning

    If you don’t live there, the lot must be in a district that allows non-owner-occupied STRPs, outside any SP or PUD that bars them, and at least 100 feet from a church, school, park, or licensed day care (unless the Council grants an exemption). If you live there, you need four documents proving it’s your primary residence: two from Group A (Tennessee ID, Davidson voter card, W-2 or 1099, vehicle registration) and two from Group B.Source

    Permit types →

  2. Notify neighbors and gather documents

    Notify each adjacent owner in person or by certified mail before you apply. You also need proof of $1 million liability insurance, proof that property taxes are paid, the HOA and contact form (with a responsible party within 25 miles), and, for non-owner-occupied permits, a notarized affidavit and a floor plan certified by a licensed architect, engineer, or home inspector showing every smoke detector.Source

  3. Apply online and pay $313

    Apply through Metro’s online process (in effect since March 11, 2026). Applications expire after 90 days. Pay the $313 fee once approved. Don’t list the home until you have the permit, and put the permit number or a legible image of it in every listing.Source

    Apply for a permit →

  4. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus Metro’s 7% occupancy tax and $2.50 a night. 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. File Metro’s occupancy tax for direct bookings with Metro Finance Collections by the 20th of each month. Get a business tax license from the Davidson County Clerk once gross receipts reach $3,000.Source

  5. Renew every year

    Permits expire 365 days after issue. Metro emails renewal notices at 60 and 45 days. Renew with the affidavit, proof of insurance, proof of occupancy tax payment, and the $313 fee. A permit can’t be transferred; a sale or a change to or from an LLC or trust cancels it.Source

House rules for guests

Maximum guests
2 per sleeping room + 4 (max 12), posted inside
Source
Stays
24 hours minimum, 30 days maximum
Source
Principal renter
21 or older
Source
Vehicles
No RVs, buses, or trailers visible
Source
Responsible party
Posted inside; answers 24/7
Source
Smoke alarms
UL 217 in sleeping areas, egress paths, and every story
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.