Short Term Rental Acronyms

By Grant HammondBroker, BDG Partners at Compass REUpdated September 10, 2026

short term rental acronymsAs the market for Nashville short term rental properties grows so do the short term rental acronyms we use to describe those properties. It’s not uncommon for me to send the following text message to a fellow agent: “Do you have a NOO STR coming in GT with a possible DADU for a 1031 client coming next month? This means that I’m looking for a non-owner occupied eligible short term rental in Germantown with a possible detached accessory dwelling unit for a client who has a 1031 tax exchange they’d like to use to purchase the property. It’s good to keep up with these acronyms and I’ll add to this list as more acronyms become part of our everyday lexicon.

Commonly Used Short Term Rental Acronyms

STR: Short term rental
STRP: Short term rental permit
STR PM: Short term rental property manager (management)
NOO: Non-owner occupied also not-owner occupied
OO: Owner occupied
PUD: Planned unit development
HPR: Horizontal Property Regime
DADU: Detached accessory dwelling unit
Z: Zoning of the property
1031: 1031 tax exchange
DD: Due diligence
EM: Earnest money aka Trust money
GT: Germantown, one of the neighborhood abbreviations agents use in conversation

Short Term Rental Return and Underwriting Acronyms

ADR: Average daily rate, the average nightly rate earned across booked nights
OCC: Occupancy rate, booked nights divided by available nights
RevPAR: Revenue per available night, ADR multiplied by occupancy
NOI: Net operating income, revenue less operating expenses before debt service
CAP: Capitalization rate, NOI divided by purchase price
ROI: Return on investment
CoC: Cash-on-cash return, annual pre-tax cash flow divided by cash invested
DSCR: Debt service coverage ratio
GRM: Gross rent multiplier, purchase price divided by annual gross rent
FF&E: Furniture, fixtures and equipment

I maintain a comprehensive list of short term rentals for sale, most of which, are NOO STRs for investors.

One term owners misread constantly is the 14-day rule. Here is the Section 280A 14-day rule and personal-use test, explained.

    Grant Hammond

    Grant Hammond is a Nashville real estate broker at Compass RE, Broker, ABR, SFR, ePRO, with 25 years of experience and over $1 billion in career sales across three practice areas: approximately $200M in luxury home sales above $1.5M (100 transactions), 350+ downtown Nashville high-rise condominium transactions, and 550+ Airbnb and short-term rental transactions in Davidson County. He has received the Greater Nashville REALTORS Diamond Elite Award of Excellence 9 times and personally owns more than 20 non-owner-occupied short-term rental townhomes within three miles of downtown Nashville. He co-founded Summit Property Management in 2008, scaled it to over 350 units, and sold the company in 2013. His market analysis has been cited by the Wall Street Journal, the Los Angeles Times, The Tennessean, and the Nashville Business Journal. He holds Tennessee Broker License #261980.

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