Craftsman bungalow with a welcoming front porch in Nashville, Tennessee

Permit required

Short-term rental laws in Nashville, TN

Last updated 2026-04-18·Source: Metro Nashville Code §17.16.250(E) — Short Term Rental Property

The current rules

What Nashville actually requires

Metro Nashville distinguishes owner-occupied (STRP Type 2) from non-owner-occupied (Type 1) permits.

Non-owner-occupied permits are not issued in most residential zoning districts; they are available in commercial and mixed-use zones, where investor STRs continue to operate.

For an investor DSCR deal, zoning is the gate: a commercially-zoned or mixed-use parcel can hold a non-owner-occupied permit; a standard residential parcel generally cannot. There is no night cap once a valid permit is held.

Does it still pencil?

A $525,000 3BR at 25% down

1.54×cap-adjusted STR DSCR

Pencils — 9 STR lenders clear the floor at this ratio.

Run your Nashville address

FAQ

Nashville STR-law questions

Is short-term rental legal in Nashville?

Nashville issues two STR permit types. Owner-occupied permits are broadly available; non-owner-occupied (investor) permits are prohibited in most residential (RS/RM) zones and only allowed in commercial/mixed-use zoning, where they remain available. (Source: Metro Nashville Code §17.16.250(E) — Short Term Rental Property, as of 2026-04-18.) Always confirm current rules with the jurisdiction before purchasing.

How much does an Airbnb make in Nashville?

A typical 3-bedroom projects around $62,000/yr from 21 comparable listings within 1 mi, trailing 12 months (AirROI + Rabbu comps). Revenue scales with bedroom count and amenities; lenders verify via Form 1007 or operating statements.

What permit do I need for an STR in Nashville?

Nashville requires a city short-term-rental permit/license, and zoning can restrict where a non-owner-occupied (investor) STR may operate. Confirm permit eligibility for the specific parcel before underwriting — it’s the gate here, not a night cap.

Will the rules in Nashville change?

Likely — STR ordinances are moving city by city in 2026. This page was last checked 2026-04-18; we re-check on a monthly minimum and on ordinance events. Confirm the current rule with Nashville before closing.

Can I get a DSCR loan on an Airbnb with no rental history?

Yes. 9 of the 10 STR lenders we track qualify the loan on a market revenue projection (AirDNA/Rabbu) or an appraiser’s Form 1007 short-term-rent schedule, so no operating history is required for many programs.

What DSCR do STR lenders require?

Most set a floor around 1.0 on the cap-adjusted DSCR (revenue ÷ PITIA). Some offer no-ratio or sub-1.0 STR programs at a premium for thinner deals. The engine shows your ratio against each lender’s specific floor.

How current is this information?

Revenue and rate figures render from the data layer with an “as of” date; STR legality is re-checked on a monthly minimum and on ordinance events, because stale legality is worse than none. Every status shows when it was last checked and a source to verify.

Nashville feasibility All cities STR → MTR pivot

Legality: Short-term-rental rules change frequently and vary by city, county, and HOA. Legality shown reflects publicly available sources as of the date displayed; it is not legal advice or a permitting determination. Confirm current rules, permits, and HOA/condo restrictions with the local jurisdiction before purchasing.

Revenue: Projected revenue is an estimate from comparable listings and is not a forecast of your results. Lenders independently verify income, typically via appraisal (Form 1007/1008) or 12-month statements. This is not a loan decision or offer.

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