How to Start an Airbnb in Nashville: STR Permits Explained

Nashville is one of the fastest-growing Airbnb markets in the United States. If you own property in Nashville and want to list it on Airbnb or operate it as a short-term rental, you need to understand Tennessee's legal requirements and Nashville's specific municipal rules. The key requirement is obtaining a short-term rental permit from the Nashville-Davidson Metropolitan Government.

This guide walks you through the exact steps to legally operate an Airbnb or short-term rental (STR) in Nashville, including what documents you need, how much it costs, how long the process takes, and what happens if you skip the permit requirement.

What You'll Need: Required Materials and Documents

Before you apply for a Nashville STR permit, gather these materials. Having everything ready speeds up the approval process and reduces the chance of delays.

• Proof of property ownership or landlord authorization. If you own the property, bring your deed or recent property tax assessment. If you rent and want to list the property as an STR, you must have written permission from the landlord.
• Property address and parcel number. You can find your parcel number on the Nashville-Davidson Property Assessor's website.
• A copy of your business liability insurance policy. Nashville requires liability insurance covering short-term rental activity. Standard homeowners insurance does not cover STRs, so you will need a specialized policy.
• An exterior photo of the property. The Metro Planning Department may request this to verify the property exists and matches your application.
• A floor plan or interior photos. Some jurisdictions request these; verify current requirements with the Planning Department.
• Identification (driver's license or passport). You will need a government-issued ID to complete the application.
• Contact information (phone and email). You must provide a phone number and email address where the city can reach you regarding violations or complaints.
• Confirmation that the property is not in a restricted zone. Some Nashville neighborhoods prohibit STRs. Check the zoning map or call the Metro Planning Department to confirm your property is zoned for short-term rentals.

Understanding Nashville's STR Regulations: What the Law Says

Nashville-Davidson Metropolitan Government regulates short-term rentals under Metro Code Chapter 13.2 (Residential Rental Properties). The key rules are:

• Permit required. You must obtain a Metro permit before listing your property on any platform, including Airbnb, VRBO, or Booking.com.
• Primary residence requirement (for some properties). Depending on the zone, you may be required to live in the property during the rental period or limit rentals to a portion of the year. Verify your specific zone's rules with the Planning Department.
• No restrictions on most neighborhoods. However, a few neighborhoods (Downtown, parts of East Nashville, and some other areas) have specific STR limitations. Check the Metro Planning Department's STR-restricted map before investing.
• Guest limits. Most properties can accommodate 8 or fewer guests without additional licensing. Larger properties may have different rules.
• Parking requirements. You must provide adequate parking for guests. The requirement is typically 1 space per bedroom.
• Insurance and safety. Liability insurance is required. You must also comply with all building codes, fire codes, and safety requirements (working smoke detectors, fire extinguishers, etc.).

Step-by-Step Process: How to Get Your Nashville STR Permit

Step 1: Verify Your Property Is Zoned for STR (1 to 2 days)

Before submitting an application, confirm that your property is allowed to operate as a short-term rental. Some Nashville neighborhoods prohibit STRs entirely. Visit the Metro Planning Department's website at https://www.nashville.gov/planning-departments/planning or call (615) 862-5000 to ask if your address is in an STR-restricted zone. Be prepared to provide your full property address. This step is free and takes 5 to 10 minutes if you call, or 1 to 2 business days if you submit a written inquiry.

Step 2: Obtain Liability Insurance (3 to 7 days)

Contact an insurance provider that covers short-term rentals. Standard homeowners policies exclude rental income, so you must obtain a specialized STR insurance policy. Call your current homeowners insurance company first, some carriers offer STR coverage as an add-on. If not, search for "short-term rental insurance Tennessee" or contact local property management companies for recommended carriers. Be ready to provide the property address, expected number of guests, and rental duration. Cost typically ranges from $400 to $1,500 per year, depending on the property value and expected rental volume. Once approved, your insurer will issue a Certificate of Insurance, which you will need for your STR permit application.

Step 3: Download and Complete the STR Permit Application (1 day)

Visit the Metro Planning Department's online portal or download the application form from the Nashville-Davidson Metropolitan Government website. The application form will ask for:

• Property address and parcel number
• Owner name and contact information
• Property type (apartment, house, condo, etc.)
• Number of bedrooms and maximum occupancy
• Whether you will reside in the property during rentals (if applicable)
• Proof of liability insurance (Certificate of Insurance)
• Proof of property ownership or landlord authorization

Fill out every field completely. Incomplete applications will be rejected and returned, adding weeks to the timeline. Double-check your property address and parcel number against your deed to ensure accuracy.

Step 4: Submit Your Application (1 day)

Submit your completed application to the Metro Planning Department. You can:

• Submit online through the Metro Planning Department's portal at https://www.nashville.gov/planning-departments/planning
• Mail it to: Metro Planning Department, One Public Square, Suite 600, Nashville, TN 37201
• Deliver it in person during business hours (Monday to Friday, 8 a.m. to 4:30 p.m.)

Online submission is fastest. If you mail or hand-deliver, include a cover letter with your name, phone number, and email address so the Planning Department can contact you if they have questions. Keep a copy of your application for your records and note the submission date.

Step 5: Pay the STR Permit Fee (At submission or approval)

The Metro Planning Department charges a fee to process your STR permit application. As of 2026, the fee is approximately $150 to $300, depending on the permit type and property classification. Confirm the exact current fee with the Planning Department before submitting, as fees are subject to change. Payment is typically due at submission or at the time of approval. You can pay by credit card, check, or online payment, depending on the submission method.

Step 6: Wait for Approval (10 to 30 business days)

The Metro Planning Department will review your application. They may contact you if they have questions about your property, insurance, or zoning status. Respond promptly to any requests for additional information, as delays in responding extend the review timeline. Approval typically takes 10 to 30 business days from the date of submission, though complex cases or properties in contested neighborhoods may take longer.

Step 7: Receive Your Permit Number and License (1 day after approval)

Once approved, you will receive a permit letter and a unique STR permit number. The permit is typically valid for one year and must be renewed annually. Keep this permit number; you will need it to list your property on Airbnb, VRBO, or other platforms. Some platforms now require proof of a valid STR permit before allowing you to list.

Important: Zoning Restrictions and Neighborhood Rules

Nashville has placed STR limitations on certain neighborhoods to protect residential character and manage tourist density. Properties in these restricted areas may not be eligible for an STR permit, or may be subject to additional requirements such as owner-occupancy or cap-and-trade rules. Restricted areas include Downtown Nashville, parts of East Nashville, and a growing number of Metro Council districts.

Before you buy or rent a property, confirm it is not in a restricted zone. The Metro Planning Department's STR map is available at https://www.nashville.gov/planning-departments/planning. If the neighborhood is marked "STR Restricted," you cannot legally operate an Airbnb there without an exception or variance from Metro Council, which is difficult and expensive to obtain.

Tips and Common Mistakes to Avoid

Tip 1: Don't List Your Property Without a Permit

Operating an Airbnb or short-term rental without a permit is illegal in Nashville. The city actively investigates complaints and can fine property owners up to $500 per day for unpermitted rentals. Additionally, Airbnb and VRBO are increasingly asking for proof of permits, and may delist your property if you cannot provide one. The cost of a permit (under $300) is far less than the potential fines and lost bookings.

Tip 2: Verify Your Insurance Covers Your Rental Activity

Standard homeowners insurance explicitly excludes short-term rental income. If a guest is injured on your property and you do not have STR-specific liability insurance, your homeowners policy may refuse to pay the claim. This liability exposure is not worth the risk. Obtain STR insurance before accepting your first guest.

Tip 3: Understand Local Occupancy Tax Requirements

Nashville requires STR operators to collect and remit occupancy tax on guest stays. The tax rate is 14.25% plus a transient rental license fee. You must register with the Metro Finance Department and submit occupancy tax returns monthly. If you fail to collect and remit occupancy tax, you are liable for the back taxes plus penalties and interest. Platforms like Airbnb can remit this tax on your behalf, but confirm this in your agreements. If you use Airbnb Payments or similar services, the platform may handle remittance; if you book guests directly, you must handle it yourself.

Tip 4: Check Your HOA or Lease Restrictions

Even if your property is zoned for STR and you have a Metro permit, your homeowners association (HOA) or lease may prohibit short-term rentals. Read your HOA bylaws or lease agreement before investing time and money in an STR application. If your HOA prohibits STRs, you must either get a waiver from the HOA board or find a different property.

Tip 5: Keep Records and Maintain Your Property

Metro Planning Department conducts periodic inspections of STR properties to ensure they meet fire code, building code, and safety requirements. Maintain your property in good condition, keep all fire safety equipment (smoke detectors, fire extinguishers, exit signs) functional, and respond promptly to any inspection notices. Property maintenance is not just a legal requirement; it is also essential for positive guest reviews and repeat bookings.

Tax and Financial Considerations

Operating an Airbnb or STR generates tax obligations on both the state and federal level. These are not covered by this informational guide, and you should consult a CPA or tax professional before launching your STR. At minimum, be aware of:

• Federal income tax. All rental income is taxable. You must report Airbnb income on your federal tax return (Form 1040, Schedule C if you operate as a sole proprietor, or on your corporate return if you form an LLC). The IRS will know you have Airbnb income because Airbnb issues 1099-NEC forms for property owners earning over a certain threshold.
• State income tax. Tennessee has no state income tax, which is one advantage for STR operators. You will not owe state income tax on your rental income, though you may owe occupancy tax (see below).
• Occupancy tax. Nashville requires short-term rental operators to collect a 14.25% occupancy tax from guests and remit it to Metro Finance. This is a pass-through tax (you collect it from guests, not from your personal income), but it is a legal requirement.
• Self-employment tax. If you operate as a sole proprietor, you may owe self-employment tax on your net income. Consult a CPA to determine your obligations.
• Deductible expenses. Mortgage interest, property taxes, insurance, utilities, repairs, cleaning, and other ordinary business expenses are tax-deductible, which can significantly reduce your taxable income. Work with a CPA to ensure you claim all eligible deductions.

Expected Results and Disclaimers

This article provides informational content about Tennessee STR regulations and the Nashville permit process. It is not legal advice, tax advice, or professional consultation. STR laws and Metro regulations change frequently, and your specific situation may have unique circumstances that are not addressed here.

Before starting an Airbnb or short-term rental operation, you should:

• Consult a local real estate attorney to review your property ownership or lease, and to confirm you understand your legal obligations under Tennessee and Metro law.
• Consult a certified public accountant (CPA) or tax professional to plan your tax strategy, understand your income tax and occupancy tax obligations, and identify deductible expenses.
• Confirm with the Metro Planning Department that your property is zoned for STR and meets all current requirements.
• Obtain liability insurance from a provider that specifically covers short-term rental activity.

The Metro Planning Department's contact information is:

• Phone: (615) 862-5000
• Website: https://www.nashville.gov/planning-departments/planning
• Address: One Public Square, Suite 600, Nashville, TN 37201

Next Steps: Launch Your Nashville Airbnb

Once you have obtained your STR permit, you are ready to list your property on Airbnb, VRBO, Booking.com, or other platforms. Take professional photos of your property, write a compelling property description, set competitive pricing, and establish a system for managing guest communications, check-ins, cleaning, and maintenance. Many STR operators hire local property management companies to handle day-to-day operations, which simplifies the process but reduces your net income.

Operating a short-term rental in Nashville can be a profitable venture, but it requires upfront compliance with local laws, liability insurance, and ongoing tax responsibilities. The permit process is straightforward if you follow the steps above and prepare your paperwork in advance. Verify all current requirements with the Metro Planning Department before investing, as STR regulations continue to evolve.