Nashville Short-Term Rental Permit Rules: What Investors Check First
A Nashville short-term rental permit decides whether a rental can host guests. See where Metro allows new non-owner-occupied permits and what to file.
A Nashville short-term rental permit is required before a property can be listed on a short-term rental website anywhere in Nashville and Davidson County, and for an investor buying a property to rent to guests, whether that permit is available at the address matters as much as the purchase price. Metro Codes issues two main permit types, and the rules for the one most investors need are narrower than many buyers expect.
Owner-occupied vs. not owner-occupied permits
Metro Codes separates short-term rental properties by whether the owner lives there. The difference decides who can hold the permit and where it can be issued.
| Owner-occupied permit | Not owner-occupied permit | |
|---|---|---|
| Who can hold it | The owner must permanently reside at the property and be a natural person; LLCs, corporations, trusts and other entities are not eligible | Owners, including entities, whose ownership on the application matches the recorded deed |
| What can be rented | Up to four sleeping rooms to a single party, or part of the unit with at least one sleeping room and a bathroom | A dwelling with no more than four sleeping rooms, rented to a single party |
| Limits on new permits | One permit per lot in single-family and two-family zoning districts | Only in listed mixed-use, office, commercial and downtown districts, as a use permitted with conditions |
Source: Metro Nashville Codes, Short Term Rental Property Permit Types (last updated March 13, 2026).
For investors, the key line is in the not owner-occupied rules. Metro says new permits of that type are not permitted on properties zoned AR2A, R, RS or RM. Existing permit holders in those districts may be eligible to renew, but Metro says those permits are not transferable if the property is sold or transferred.
That means a house operating as a short-term rental under a permit in one of those districts may not be able to keep doing so under a new owner. Properties zoned as a Specific Plan or within a Planned Unit Development can receive a permit only if the plan allows it.
How to check a Nashville short-term rental permit before buying
Metro's Short Term Rental Permit Eligibility Viewer lets anyone search an address to see which type of permit the property can obtain, and Metro Codes takes questions by email when results are unclear. Checking before an offer, rather than after closing, can keep an investor from buying a property for income it cannot legally earn.
Metro also sets operating limits that affect projected income. Guests cannot be charged for stays of less than 24 hours, the maximum stay for any guest is 30 consecutive days, and permits must be renewed every year.
What the not owner-occupied application requires
Metro's application checklist for a not owner-occupied permit includes:
- Proof that all taxes due, including property taxes, have been paid
- For a property held in an LLC or trust, documents such as articles of organization that link the entity to the person applying
- A floor plan of the whole dwelling; for single-family and two-family homes it must be certified by a state-licensed architect, engineer or home inspector
- Proof of fire, hazard and liability insurance, with liability coverage of at least $1 million per occurrence
- A notarized affidavit, notice to adjacent property owners and a homeowners association statement
- A responsible party who lives within 25 miles of the property
The permit fee is $313, and a Fire Marshal inspection applies to properties with three or more dwellings. Metro says an owner is not authorized to list the property until the permit is issued, and the permit number or an image of the permit must appear on every listing.
Where financing fits
A lender weighing a rental's income, including on a debt service coverage ratio loan, will generally want to know the income is legal to earn at that address, and requirements vary by lender. Iron Hill Brief's DSCR loan Tennessee guide explains how lenders measure a property's income against its debt payments, and its report on the Nashville rental vacancy rate covers the long-term rental market as an alternative. The overview of DSCR loans covers how the program works for Tennessee rentals.
Working on a Tennessee rental? Talk with an Iron Hill loan advisor: text Ashley at 615-949-4780 or book a time here. Iron Hill Mortgage | NMLS #1946451.
Business-purpose loans for investment property only. Not for personal, family or household use. Subject to approval. Equal Housing Opportunity.
Sources
- Metropolitan Government of Nashville and Davidson County, Codes, "Short Term Rental Property" (last updated March 11, 2026; accessed Oct. 29, 2026): https://www.nashville.gov/departments/codes/short-term-rentals
- Metro Codes, "Short Term Rental Property Permit Types" (last updated March 13, 2026; accessed Oct. 29, 2026): https://www.nashville.gov/departments/codes/short-term-rentals/permit-types
- Metro Codes, "Not-Owner Occupied Short Term Rental Permit Application Checklist" (accessed Oct. 29, 2026): https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit/not-owner-occupied-checklist
- Metro Codes, "Short Term Rental Property Search" (accessed Oct. 29, 2026): https://www.nashville.gov/departments/codes/short-term-rentals/property-search