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Tennessee Airbnb & Short-Term Rental Laws 2026

LawfulStay tracks short-term rental (STR / Airbnb / Vrbo / holiday let / vacation rental) regulations for 9 jurisdictions across Tennessee. Select a city below for current permit requirements, tax rates, and compliance details.

3 Active 4 Restricted 2 Pending

Tennessee Airbnb & Vacation Rental Regulation Overview

The short-term rental regulatory landscape in Tennessee encompasses 9 tracked jurisdictions: 3 with active regulations, 4 with restrictions, 2 with pending legislation. Hosts operating on platforms like Airbnb, VRBO, and Booking.com should verify local requirements before listing, as rules vary significantly between cities and regions.

Approximately 100% of tracked jurisdictions in Tennessee require some form of permit, license, or registration for short-term rental operations. Requirements range from simple online registration to comprehensive permit applications with inspections.

Tax obligations apply in 9 of 9 jurisdictions. Common taxes include occupancy taxes, tourist levies, and sales taxes. Many jurisdictions require hosts to register for tax collection, and some platforms like Airbnb collect and remit taxes automatically in select locations.

Cities with significant restrictions on vacation rentals include Nashville, Pigeon Forge, Chattanooga. These jurisdictions typically impose permit caps, zoning limitations, or primary residence requirements.

LawfulStay monitors Tennessee STR regulations daily and updates this page as rules change. Each city page includes detailed permit requirements, fee schedules, tax rates, zoning rules, and penalty information sourced from official government websites.

Chattanooga
Dual tier: Homestay (owner-occupied, primary ≥183 days/yr) in commercial + STVR overlay. Absentee (non-owner) restricted to commercial zones only — generally ba…
Restricted
Franklin
Franklin's STVR ordinance (Ordinance 2015-06 as amended, Title 13 Ch. 2, Franklin Municipal Code) requires: (1) annual Certificate of Use and Occupancy from BNS…
Restricted
Nashville
Two-tier permit system; local permitting boom alongside STR growth.
Restricted
Pigeon Forge
Pre-issuance/renewal inspection required for compliance with building, fire safety, and health codes (smoke alarms, CO detectors, fire extinguishers). Must desi…
Restricted
Gatlinburg
Annual fire and safety inspections required (smoke detectors, CO detectors, fire extinguishers, clear escape routes, posted emergency contact, visible address s…
Active
Knoxville
Growing STR market. No owner-occupancy requirements or quantity caps. City business license required. Gateway to Smoky Mountains.
Active
Sevierville
City of Sevierville: Annual Short-Term Rental Operational Permit required; application requires specific documentation, fee payment, and Fire Department life-sa…
Active
Memphis
Memphis City Council is moving toward tighter STR enforcement following violence at rental gatherings. A March 2026 council resolution (STR Resolution 22426) di…
Pending
Townsend
Townsend's existing Zoning Ordinance has allowed tourist residences via annual permit from the building inspector since at least 1991, but the permit program wa…
Pending