Nashville Short Term Rental Permit Guide: NOOSTR Zoning + Application Process

Related research: For the latest performance data on which permitted Nashville buildings actually trade, see my three-year MLS analysis of closed Airbnb sales across 31 tracked buildings — volume, price-per-foot, neighborhood concentration, and active pipeline as of June 2026.

This Nashville STR zoning and permits guide explains the rules that govern non-owner-occupied (NOOSTR) and owner-occupied (OOSTR) short-term rentals across Davidson County. Nashville short-term rentals are governed by Metro Code §6.28 and enforced by the Department of Codes and Building Safety. Metro Codes recognizes two permit types: Owner-Occupied (OOSTR) and Not Owner-Occupied (NOOSTR). The two have meaningfully different eligibility rules, allowed zoning districts, and operational restrictions. New NOOSTR permits are issued only as a “use permitted with conditions” in a defined list of 29 commercial-adjacent and downtown-core zoning districts; they are not permitted in standard residential zones (AR2A, R, RS, RM). Both permit types share a common operations rulebook covering occupancy, signage, noise, taxes, and renter age. Ownership changes (including person-to-trust or person-to-LLC conversions) cancel an existing permit.

Why Zoning & Permit Verification Matters

Most failed Nashville Airbnb investments trace back to a single mistake: assuming a property qualifies for NOOSTR use because comparable nearby properties operate as STRs. Nashville STR eligibility is parcel-specific. Two adjacent townhomes can have entirely different STR rights depending on their zoning classification, overlay district, and Specific Plan (SP) or Planned Unit Development (PUD) conditions. Verifying both zoning and permit eligibility before closing is not optional, and the wrong assumption costs investors anywhere from the lost permit value to the entire ROI thesis. This guide separates the OOSTR rules and the NOOSTR rules in full because conflating the two is the single most common buyer error.

OOSTR vs NOOSTR Permits

Nashville distinguishes between two short-term rental permit classes under current Metro Code, and the distinction drives almost every Nashville Airbnb investment decision.

Owner-Occupied STR (OOSTR) allows a property owner to rent out their primary residence on a short-term basis when they are present, or rent the entire residence for limited periods when traveling. OOSTR permits are available in a wider zoning footprint than NOOSTR because the owner is on site. Income from OOSTR is generally lower than NOOSTR because the operator lives at the property and the rental window is constrained.

Non-Owner-Occupied STR (NOOSTR) allows full-time short-term rental operation without the owner residing at the property. NOOSTR permits are the primary target for Nashville Airbnb investors because they enable continuous rental income, professional property management, and portfolio-scale operations. NOOSTR permits are restricted to specific zoning districts and have not been issued in newly upzoned residential areas since the 2018 split codified by BL2017-608.

For investors, Nashville short term rental permit eligibility is the single most important due-diligence question on any prospective Nashville STR purchase. Importantly, the wrong assumption here can defeat the entire investment thesis. A property without NOOSTR eligibility cannot generate the revenue most investors model.

Where NOOSTR Permits Are Allowed

NOOSTR permits in Nashville are restricted to properties zoned in commercial-mixed districts including MUL (Mixed Use Limited), MUG (Mixed Use General), MUI (Mixed Use Intensive), CS (Commercial Services), and several Specific Plan (SP) districts that explicitly permit non-owner-occupied short-term rental use. Properties zoned strictly residential, including R6, R8, R10, RS5, RS7, and RS10, generally do not qualify for NOOSTR.

In practice, most Nashville NOOSTR inventory clusters in:

  • Germantown townhome developments built under SP zoning (Alora, Lucy)
  • East Nashville Airbnb-permitted buildings along Main Street, Lischey Avenue, and the Five Points corridor (The Jesse, Vibe, Starlet East, Lyric)
  • Downtown boutique and mid-rise developments approved for STR use during entitlement (Heritage at Broadway, Hyve, Allegro, Muse)
  • Midtown new construction with SP-approved STR allowances (VOCE Hotel and Residences)
  • Music Row developments operating under commercial-mixed zoning (Musica, Raven, Skyline)
  • Wedgewood-Houston and the WeHo corridor (Modernest WeHo)
  • North Nashville and the Katie Hill area (Horizon, Vistas at Katie Hill)

Buyers shopping single-family STR investment properties face a narrower field than buyers shopping condominium or townhome inventory because most single-family residential lots in Nashville are zoned in districts that do not permit NOOSTR use.

How to Verify STR Eligibility

For verification, the Nashville Department of Codes and Building Safety maintains the authoritative zoning record for every parcel in Davidson County. STR eligibility verification follows this sequence:

  1. Identify the property’s zoning classification. Pull the parcel from the Metro Nashville Property Lookup or Davidson County Property Assessor records. The zoning code (R6, MUL, MUG, MUI, SP, CS, etc.) determines the baseline permit eligibility.
  2. Check for overlay districts. Historic Preservation Overlays, Neighborhood Conservation Zoning Overlays, and Urban Design Overlays can layer additional restrictions on top of base zoning. Some overlays explicitly prohibit STR use even where base zoning would otherwise allow it.
  3. Review Specific Plan conditions. Properties governed by SP zoning have parcel-specific rules written into the Specific Plan ordinance. SP rules can either expand or restrict STR allowances relative to standard zoning categories.
  4. Confirm with Metro Codes directly. The most reliable verification is a written confirmation from the Nashville Department of Codes confirming that NOOSTR use is permitted at the specific address. Buyers should request this confirmation as a condition of the purchase agreement when STR use is part of the investment thesis.
  5. Verify the minimum-distance and capacity rules. BL2019-78 (enacted 2020) imposed minimum distance requirements between new NOOSTR properties. BL2023-1884 (enacted 2023) codified additional minimum distances from churches, schools, daycares, and parks. Eligibility at the parcel level can be defeated by proximity rules.
  6. Confirm HOA and condo bylaws. Even where Metro Codes permits NOOSTR use, individual HOA or condominium association documents can prohibit it. The HOA layer is independent of municipal zoning.

Importantly, skipping any of these steps creates real risk for the buyer. Properties have been purchased with the expectation of STR use only for the buyer to discover post-closing that the HOA prohibits it, or that a recent permit-distance restriction blocked the property, or that an overlay district restriction applies.

Permit Application Process

Once a buyer confirms a property is NOOSTR eligible, the Nashville short term rental permit application process runs through the Metro Nashville Department of Codes and Building Safety. For the full purchase-to-permit workflow, see how to buy a Nashville Airbnb. Required documentation typically includes:

  • Property deed or proof of ownership
  • Proof of property tax payment status
  • Site plan showing the rental unit and parking
  • Floor plan with bedroom count
  • Liability insurance documentation showing STR coverage
  • Local contact person information (contact must be reachable within 60 minutes)
  • Compliance attestation that the property meets all building, fire, and safety codes
  • Tennessee Department of Revenue registration for sales tax collection
  • Metro Nashville business license registration
  • Permit application fee per the current Metro Codes schedule

Processing time varies. In current cycles, Nashville short term rental permit applications typically take 30 to 90 days from submission to issuance. Some applications stall on missing documentation or zoning clarification questions, which is why many investors close on properties with a contingency clause around NOOSTR permit issuance. Buyers planning STR purchases should align closing timelines with the permit lead time and avoid relying on a seller’s “permitted at sale” representation as a substitute for receiving the new permit in their own name.

Permit Renewal & Transfer Rules

Additionally, every Nashville short term rental permit must be renewed annually. The renewal process requires re-confirmation that the property continues to meet all eligibility requirements, that operating conditions have not changed, and that the local contact and insurance information remain current.

Critically, STR permits do not transfer automatically when a property sells. When an STR-permitted property changes hands, including person-to-trust or person-to-LLC ownership conversions, the existing permit is cancelled and the new owner must apply for their own permit. Sellers can prepare for this in the sell my Nashville Airbnb playbook. The application is generally easier because the property has already been validated, but the eligibility verification window can introduce a multi-week gap in legal STR operation between closing and new permit issuance. Buyers should plan for this transition gap when modeling first-year cash flow.

Operational Rules for Every STR

Beyond zoning, every Nashville short term rental permit holder must follow operational rules that apply across both permit classes. Specifically, the operator must meet every requirement on the list below:

  • Maximum occupancy of two guests per bedroom plus four additional guests, not to exceed twelve total guests
  • Quiet hours and nuisance compliance under Metro Code Chapter 6.28
  • Local contact requirement: the operator or designated contact must be reachable within 60 minutes for guest or neighbor issues
  • Tax collection and remittance across four components: Local Hotel Occupancy Tax (7%), State Hotel Occupancy Tax (5%), Marketing and Events Fee (1%), and State Sales Tax (7% on the listing price plus cleaning fees) registered with the Tennessee Department of Revenue — approximately 15.25% of the total room rate plus a flat $2.50 nightly fee per booking. Full breakdown in the Nashville STR tax guide.
  • Business license registration with Metro Nashville
  • Compliance with building, electrical, and fire safety code

Booking platforms like Airbnb automatically calculate and remit most of these taxes at the platform level, but the operator remains responsible for verifying the platform is collecting the correct components and for handling any taxes the platform does not auto-collect. Operating without active tax registration creates exposure to permit revocation, fines, and in some cases criminal liability. The compliance burden is meaningful but manageable, and most professional Nashville STR investors work with management companies that handle the operational layer.

Common Compliance Pitfalls

However, investors who lose money on Nashville short term rental purchases typically lose it on one of these compliance patterns:

  • Assuming zoning equivalence between adjacent parcels. Two townhomes on the same street can have different STR eligibility.
  • Buying without confirming the minimum-distance rule hasn’t blocked the property. BL2019-78 and BL2023-1884 distance rules can defeat otherwise-eligible parcels.
  • Missing HOA prohibition. Metro Codes can permit NOOSTR use but HOA bylaws can prohibit it.
  • Overlooking overlay district restrictions. Historic and conservation overlays can prohibit STR even in otherwise-eligible base zoning.
  • Failing to budget for the permit transition gap. Permits do not transfer with sale; the new owner applies fresh.
  • Assuming all Specific Plan zoning allows STR. SP rules are parcel-specific; some SPs explicitly prohibit STR.
  • Operating before the new permit issues. Renting the property between closing and new-permit issuance is unpermitted operation regardless of the prior owner’s permit history.

In contrast, the buyers who succeed treat Nashville short term rental permit verification as non-negotiable due diligence, separate from price negotiation and financing review.

Out-of-county confusion. Many buyers assume Nashville STR rules apply across Middle Tennessee. They don’t. Franklin, Brentwood, and Smyrna each set separate ordinances. Smyrna defines short-term rentals as any stay under three months and applies its own permit framework, distinct from Davidson County’s NOOSTR and OOSTR split. This guide covers Davidson County only. Verify the local ordinance before assuming a property outside Davidson operates under Nashville’s rules.

Legislative History & 2018 NOOSTR Split

Nashville’s short term rental permit framework was built across 24 enacted ordinances between 2014 and 2024, with the foundational zoning rules established by BL2014-909 and BL2014-951 (both enacted February 2015) and the operative permit-class framework codified by BL2020-187 (enacted July 2020, the current law).

However, the defining moment for the Nashville short term rental permit framework came with BL2017-608, enacted January 23, 2018. This ordinance phased out new NOOSTR permits in most residential zoning districts and protected grandfathered properties that held active NOOSTR permits at the cutoff. The practical effect is that NOOSTR inventory available for purchase today consists largely of:

  • Grandfathered properties that held active NOOSTR permits before the 2018 cutoff
  • New construction in commercial-mixed (MUL/MUG/MUI/CS) or Specific Plan zoning that was approved for STR use during entitlement
  • Conversions of existing buildings in commercial zoning to STR use

The grandfathered inventory pool is finite and shrinks each year as properties drop their permits, face revocation, or fail renewal. New construction in SP-approved zones is where most active NOOSTR inventory now comes from. This is why developments like Alora, Lucy, Musica, and Skyline command premium pricing in the Nashville STR investment market: they are among the few sources of new NOOSTR-eligible inventory. The best Nashville Airbnb buildings guide ranks the entire active set.

Subsequently, several ordinances refined the framework. For example, BL2019-78 (enacted 2020) added minimum-distance requirements between new NOOSTR properties. BL2019-1633 (enacted 2019) refined OOSTR and NOOSTR definitions and permit conditions. BL2023-1884 codified additional minimum-distance rules from churches, schools, daycares, and parks. BL2024-478 (enacted November 2024) amended Chapter 6.28 of the Metro Code with the most recent operational-rule updates.

A note on legacy terminology. Nashville STR investors who have been in the market for several years sometimes refer to “Type 1, Type 2, and Type 3” permit classes. The Metro Code itself has never formally used Type 1/2/3 terminology. The labels appeared in proposed 2017 Council legislation, specifically BL2017-609 and BL2017-610, both of which proposed Type 2/3 moratoria. Both bills were withdrawn before enactment. The same policy goal was achieved through BL2017-608 using “Not Owner-Occupied” terminology. Current law (BL2020-187 and successor amendments) uses only OOSTR and NOOSTR. If you encounter “Type 1/2/3” in older listing copy, marketing materials, or buyer education, treat it as a reference to proposed-but-withdrawn 2017 terminology, not enacted law.

How to Track Nashville Airbnb Laws and Permit Changes

Metro Nashville Council votes on Nashville Airbnb laws throughout the year, and property owners can weigh in directly. Active bills are posted at nashville.legistar.com under the Legislation section. Search by ordinance number or filter by the Planning, Zoning and Historical Committee. Public comment is accepted at second and third readings, in person at the Historic Metro Courthouse or via the written-submission portal Metro maintains. Tracking the Codes Committee and Planning Commission agendas catches most Nashville Airbnb law and permit items before they reach final vote.

Frequently Asked Questions

What is a Nashville short term rental permit?

A Nashville short term rental permit is the Metro Nashville authorization required to legally rent a residential property for stays of less than 30 days. Metro Codes issues two permit classes: Owner-Occupied (OOSTR) for owners renting rooms or a unit at their primary residence, and Non-Owner-Occupied (NOOSTR) for dedicated investment properties without owner residency. Both classes require an active permit, an annual renewal, and tax registration. Operating without a permit triggers fines and can disqualify a property from future permitting.

How do I get a Nashville Airbnb permit?

The Nashville Airbnb permit process runs through Metro Codes. Applicants verify zoning eligibility for the parcel, file a permit application with proof of insurance and ownership, register with the Tennessee Department of Revenue for sales tax collection, register for Nashville’s occupancy tax, and pass an interior inspection. NOOSTR applications are restricted to specific zoning districts where the use is allowed by right; OOSTR applications follow a separate but parallel track for owner-occupied properties. Approval timelines vary with application volume and inspection scheduling.

Where Nashville short term rental permits are allowed

NOOSTR permits are restricted to 29 zoning districts under the current Metro Code framework, concentrated in commercial-mixed (MUL, MUG, MUI), specific plan (SP) districts where STR use was approved, and certain industrial-residential overlays. Most residential single-family zones (RS, R) do not allow NOOSTR. OOSTR permits operate under a wider but separately constrained zoning footprint because the owner is on site. Parcel-level zoning verification through Metro Codes is the only reliable source — adjacent parcels with similar appearance can have different eligibility.

How much does a Nashville STR permit cost?

The Nashville STR permit application fee, annual renewal fee, and inspection charge are set by Metro Codes and update periodically. Operating costs beyond the permit include Tennessee state sales tax registration, Nashville hotel occupancy tax registration, business license fees, and any HOA-imposed STR fees if the property sits inside an association. Insurance for short term rental use is also separately required and is typically priced above standard homeowner coverage. Current fee schedules are published on the Metro Codes website.

Are Nashville STR permits transferable at sale?

NOOSTR permits in Nashville are not freely transferable. A change of ownership — including person-to-trust or person-to-LLC conversions — cancels the existing permit, and the new owner must apply on the same parcel under current rules. The practical implication for buyers is that a property advertised as “permitted” provides operational evidence the zoning supports the use, but the buyer must still apply for and receive a new permit before legal operation resumes. Sellers cannot guarantee the buyer’s permit will issue.

How long does the Nashville Airbnb permit process take?

Nashville Airbnb permit timelines depend on application completeness, inspection scheduling, and current Metro Codes processing volume. A clean application with zoning verification, tax registrations, and insurance in hand typically clears in several weeks; applications missing documentation or requiring zoning interpretation extend further. Buyers planning STR purchases should align closing timelines with the permit lead time and avoid relying on a “permitted at sale” representation as a substitute for receiving the new permit in their own name.

Yes. Airbnb and other short-term rentals are legal in Nashville when the property qualifies under appropriate zoning and the operator holds an active OOSTR or NOOSTR permit through Metro Codes. STR operation without a valid permit is not legal and is subject to enforcement.

Can I buy any Nashville property and use it as an Airbnb?

No. NOOSTR permit eligibility is restricted to specific zoning categories and is verified at the parcel level. Most strictly residential zoning districts do not permit NOOSTR use, and the 2018 NOOSTR phase-out under BL2017-608 further restricts new permit issuance in many neighborhoods. Buyers shopping for STR investment should treat zoning verification as a non-negotiable due diligence step.

How often must a Nashville short term rental permit be renewed?

Annually. Renewal requires re-confirmation that the property still meets eligibility requirements, that operating conditions have not changed, and that insurance and local contact information are current.

What happens if Nashville changes short term rental regulations again?

Nashville has periodically tightened STR rules across the 24 enacted STR ordinances between 2014 and 2024, and the Council may continue to refine the framework. Grandfathered NOOSTR permits have historically been protected during regulatory changes, but no protection is absolute. Investors should factor regulatory risk into return models and consider properties with stronger zoning protection (commercial-mixed, SP-approved) over those that depend on more vulnerable categories.

What are the operational rules for Nashville Airbnb properties?

Maximum occupancy of two guests per bedroom plus four additional guests, up to twelve total. Quiet hours and nuisance compliance. A local contact reachable within 60 minutes. Tax collection and remittance across four components: 7% Local Hotel Occupancy Tax, 5% State Hotel Occupancy Tax, 1% Marketing and Events Fee, and 7% State Sales Tax on the listing price plus cleaning fees — approximately 15.25% of the total room rate plus a flat $2.50 nightly fee. Metro Nashville business license registration. Full compliance with Metro building, electrical, and fire safety codes. Operating outside these rules creates exposure to permit revocation and fines.

Are there HOA restrictions on Nashville Airbnb properties?

Often yes. Even where Metro Codes permits NOOSTR use, HOA or condominium association documents can prohibit it. Always review HOA bylaws and architectural review documents before assuming a condo or townhome property qualifies for STR use.

Can I run multiple Airbnbs at the same property?

NOOSTR permits are issued one per dwelling unit. Multi-unit properties such as duplexes, fourplexes, and condominium buildings may have multiple separate NOOSTR permits, but each unit must qualify independently and each operator must hold a separate permit.

Work With Grant Hammond

Grant Hammond is a Nashville real estate broker at Compass RE with 25 years of experience and over $1 billion in career sales. His practice spans three areas: approximately $200 million in luxury home sales above $1.5M (100 transactions), 350-plus downtown Nashville high-rise condominium transactions, and 550-plus Nashville short-term rental and Airbnb investment transactions across Davidson County. Grant has been recognized by Greater Nashville REALTORS with the Diamond Elite Award of Excellence nine times. He personally owns more than 20 non-owner-occupied short-term rental townhomes within three miles of downtown Nashville and approaches every Nashville Airbnb investment as an investor as well as a broker. His analysis has been cited by the Wall Street Journal, the Los Angeles Times, The Tennessean, and the Nashville Business Journal. Tennessee Broker License #261980. Call or text (615) 945-7123 or email grant@granthammond.com to discuss zoning verification on a specific Nashville STR investment opportunity, or explore the full Nashville Airbnb revenue and ROI guide before your next purchase.

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