LicensedRental

Putnam County, Tennessee

Cookeville, TN vacation rental requirements

Cookeville requires a yearly short-term rental permit ($100, then $50 a year) with a fire inspection, city business license, and $1 million in liability insurance. Rentals are allowed only in multi-family, planned residential, commercial, medical, and university zones, not single-family zones.

Checked against official sources November 5, 2026

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City permit
Required, renewed yearly
$100 new, $50 renewal.Source
Zoning
RM-8, RM-14, PRD, CBD, CN, CL, CG, MS, UNV only
Occupancy
2 adults + 2 children per bedroom
A short-term rental can have at most 4 sleeping rooms.Source
Taxes
9.75% sales + 10% occupancy
7% county + 3% city occupancy tax.Source

The permit can’t be transferred to a new owner, and three code violations in 12 months revoke it for a year.

Owner-occupied bed and breakfast homes have separate rules (special exception in single-family zones). Ask the Planning Department which rules fit your home.

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.

Putnam County, Tennessee

  1. Register for sales and occupancy tax

    Outside city limits, tax on stays is 9.75% sales tax plus the 7% county occupancy tax. Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax with the state through TNTAP, and ask Putnam County where to file the county occupancy tax.Source

  2. Then your city

    Cookeville has a permit and zoning limits. Pick your area.

City of Cookeville

  1. Confirm your zoning

    Short-term rentals are allowed only in the RM-8, RM-14, PRD, CBD, CN, CL, CG, MS, and UNV districts. Call the Planning Department (931-520-5271) or check the city zoning map.Source

  2. Get a fire inspection, business license, and insurance

    You need a fire inspection from the current year, a city and county business license, and at least $1 million in liability insurance before the permit is issued.Source

  3. Apply for the STRP permit

    Bring the permit form and documents to the Codes Department at City Hall, 45 E Broad Street, and pay the fee. Renew every year with a new fire inspection.Source

  4. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 10% occupancy tax (7% county + 3% city). 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 the city’s 3% with the city clerk by the 20th of each month; the city code says marketplace bookings are remitted to the state. Ask Putnam County where to file its 7%.Source

Fees

New permit$100
Annual renewal$50

Source

Inspection checklist

What the inspector looks for, from City of Cookeville’s published checklist.

  • Smoke detectorsHard-wired, interconnected, with battery backup, in each bedroom, outside bedrooms, and on every floor including basements.Source
  • Fire extinguisherA 5-pound ABC extinguisher with a third-party certification tag.Source
  • Second way outEvery bedroom needs a second operable means of egress.Source

House rules for guests

Parking
1.25 off-street spaces per bedroom
Source
Minimum stay
24 hours
Source
Guest log
Required
Number of guests and dates of each stay.Source
Postings
Permit, and contact if not owner-occupied
Post the permit inside; if you don’t live there, post the name, phone, address, and email of the person responsible.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.