Short-Term Rental (Airbnb) Regulations in Nashville & Franklin

Short-term rentals can be an attractive option for homeowners and real estate investors in the Nashville area. But owning a property doesn't automatically mean you can list it on Airbnb or another vacation-rental platform. Nashville and Franklin have their own rules covering permits, zoning, occupancy, taxes, insurance, and how short-term rentals can be operated.

If you're considering buying a home as a short-term rental, already own one, or are thinking about selling a property with an existing rental permit, understanding the local regulations is an important part of the real estate decision.

Because short-term rental regulations can change, always verify current requirements with the appropriate city department before purchasing or listing a property.

• Nashville requires a Short Term Rental Property permit before a property can be listed for short-term rental use.
• Franklin has its own Short-Term Vacation Rental requirements, including zoning and approval requirements.
• HOA rules, insurance, taxes, occupancy limits, and permit requirements should all be reviewed before treating a property as an Airbnb investment.
• The Ben Kinney Team can help buyers evaluate properties with their intended short-term rental strategy in mind.

Nashville Requires a Short-Term Rental Permit

In Nashville and Davidson County, anyone who wants to rent a property through a short-term rental platform must obtain a Short Term Rental Property permit from Metro Codes before listing the property.

Nashville defines a short-term rental as a property rented for periods of less than 30 consecutive days. The city's requirements can vary depending on the type of property and whether the owner lives at the property.

The permit process may involve documentation related to:

• Property ownership
• Owner occupancy, when applicable
• Property taxes
• Insurance
• Zoning
• Inspections
• Neighbor notification
• HOA or condominium restrictions
• A local responsible party

Nashville's STR permit application process has also been updated, so buyers should review the current Metro requirements rather than relying on older Airbnb guides or investment articles.

The key takeaway is simple: don't assume a Nashville property can be used as a short-term rental just because similar properties nearby are being advertised on Airbnb.

Owner-Occupied and Non-Owner-Occupied Rentals Are Different

One of the most important distinctions for Nashville buyers is whether the property will be owner-occupied.

Owner-occupied short-term rental permits require documentation showing that the applicant actually resides at the property. Non-owner-occupied properties have different eligibility and zoning considerations.

This distinction can significantly affect an investor's purchasing strategy.

If you're planning to purchase a property specifically for short-term rental income, investigate the property's eligibility before making an offer.

Questions to ask include:

• Is the property eligible for the type of short-term rental I want to operate?
• Does its zoning allow the intended use?
• Is there an existing permit?
• If there is a permit, what happens when the property changes ownership?
• Are there restrictions attached to the property?
• Does an HOA or condominium association have additional rules?

The answers can change whether a property makes sense as an investment.

Franklin Has Its Own Short-Term Rental Rules

Franklin has a separate set of regulations for short-term vacation rentals, often referred to as STVRs.

The City of Franklin defines an STVR as a residential dwelling rented in its entirety for periods of less than 21 days. The city requires approval before a qualifying property can be operated or advertised as a short-term vacation rental.

Franklin's zoning requirements are especially important for buyers because short-term rental eligibility can depend on where the property is located and how the property is configured.

The city's rules can include requirements related to:

• Zoning
• Owner occupancy
• Accessory dwelling units
• Rental-night limitations
• Property configuration
• Responsible-party requirements
• Insurance
• Existing or grandfathered approvals

Franklin also has provisions addressing certain properties that were legally established and permitted under previous regulations.

If you're considering an existing Franklin short-term rental, don't assume that its current operation automatically guarantees that the same arrangement will continue after a purchase.

Verify the property's current status, permit history, and applicable zoning requirements before closing.

Occupancy and Operating Rules Matter

Obtaining a permit doesn't mean an owner can operate the property without restrictions.

Short-term rental owners are responsible for following applicable rules while guests are staying at the property.

In Nashville, operating requirements can address issues such as:

• Maximum occupancy
• Noise
• Waste and trash
• Building safety
• Fire safety
• Responsible-party requirements
• Property maintenance

Nashville's current regulations limit occupancy based on permitted sleeping rooms, subject to the city's maximum occupancy requirements.

Nashville also requires a local responsible party who can respond to issues at the property during rental periods.

Franklin has its own responsible-party requirements as well.

These rules are important when evaluating the economics of a short-term rental. A property may look attractive based on its potential nightly rate, but owners also need to account for the responsibilities and operating requirements that come with the rental.

Insurance and Taxes Should Be Part of the Calculation

Short-term rental investors need to look beyond the purchase price and potential rental income.

Insurance is one consideration.

Nashville's current application requirements include homeowners and liability insurance, including minimum liability coverage requirements. Franklin also has insurance requirements for short-term vacation rentals.

A standard homeowners insurance policy may not provide the coverage you need for a property operated as a short-term rental, so speak with an insurance professional before moving forward.

Taxes are another consideration.

Short-term rental owners may have business, sales, hotel occupancy, or other applicable tax obligations depending on the property and how it is operated.

Before purchasing, consider building these expenses into your investment analysis:

• Insurance
• Property taxes
• Short-term rental taxes
• Cleaning
• Maintenance
• Utilities
• Property management
• Furnishings
• Repairs
• Platform fees
• Licensing and permit costs

The goal is to understand the property's potential net operating picture, not simply its gross rental revenue.

HOA and Condo Rules Can Be More Restrictive

City approval doesn't necessarily mean an Airbnb is allowed by the property's private governing documents.

Homeowners associations, condominium associations, and private covenants can impose restrictions that are more restrictive than local government regulations.

Before purchasing a property for short-term rental use, review:

• HOA bylaws
• Covenants and restrictions
• Condominium documents
• Rental restrictions
• Minimum lease periods
• Existing property rules
• Any amendments affecting rentals

This is especially important for condos and planned communities.

A property can appear to be a perfect short-term rental opportunity based on its location and layout but still be prohibited from operating as one under private restrictions.

What Buyers Should Check Before Purchasing an Airbnb Property

If you're considering buying an investment property in Nashville or Franklin, don't wait until after closing to determine whether short-term rental use is permitted.

Before making an offer, consider verifying:

Zoning Eligibility

Determine whether short-term rental use is permitted for that specific property and zoning classification.

Permit Status

Find out whether the property currently has a valid short-term rental permit or approval.

Transferability

If the property already operates as a short-term rental, determine whether its approval or permit can continue after the property changes ownership.

HOA Restrictions

Review the property's private restrictions in addition to municipal regulations.

Occupancy Requirements

Understand how many guests can legally stay at the property and whether that affects your expected rental strategy.

Insurance

Confirm that you can obtain appropriate short-term rental coverage at a cost that makes sense for the investment.

Taxes and Expenses

Build applicable taxes and operating costs into your financial projections.

Property Condition

Make sure the home can meet applicable building, safety, and operational requirements.

This due diligence can help prevent an expensive surprise after closing.

Why Local Real Estate Guidance Matters

Short-term rental regulations add another layer to an already complicated real estate purchase. You're not simply evaluating the house. You're evaluating whether the property can legally and practically support your intended use.

This is where having a real estate team with the right tools and resources can make a difference.

The Ben Kinney Team combines local Nashville-area market knowledge with technology and resources designed to help buyers make more informed real estate decisions.

For buyers considering an Airbnb or short-term rental, the team's access to REMINE, an industry-leading real estate data platform, provides another resource for researching properties and evaluating the surrounding market.

The team can also help buyers explore off-market properties that other buyers may not have access to. For an investor looking for a property that could work as a short-term rental, broader access to potential opportunities can be valuable, particularly when the right property isn't publicly advertised.

The goal isn't simply to find a house that looks like a good Airbnb.

It's to determine whether the property, location, regulations, operating requirements, and investment strategy make sense together.

Don't Base an Investment Decision on Airbnb Revenue Alone

One of the easiest mistakes for a prospective short-term rental investor is to focus on potential nightly revenue without considering the full picture.

A property that generates strong gross rental revenue may still have challenges related to:

• Purchase price
• Financing
• Taxes
• Insurance
• Maintenance
• Property management
• Cleaning
• Furnishings
• Vacancy
• Regulatory restrictions
• Changes in local rules

It's also important to remember that short-term rental regulations can change.

A strategy that works today should not be treated as permanently guaranteed. Investors should regularly review local requirements and consider how potential regulatory changes could affect the property's long-term value and use.

Nashville vs. Franklin: What Buyers Should Keep in Mind

Nashville and Franklin are both popular destinations for people looking to own real estate, but buyers shouldn't treat their short-term rental regulations as interchangeable.

Nashville and Davidson County have their own STRP permitting system, while Franklin operates under its own STVR regulations and zoning framework.

That means the same investment strategy may not work equally well in both markets.

If you're comparing properties in Nashville, Franklin, or surrounding communities, evaluate each property individually.

Consider:

• Local regulations
• Zoning
• Property type
• Location
• HOA restrictions
• Permit requirements
• Operating costs
• Long-term investment goals

A local real estate professional can help you identify questions to investigate, but municipal departments and qualified legal, tax, and insurance professionals should be consulted for definitive regulatory and financial guidance.

Final Thoughts

Buying a property for Airbnb or another short-term rental strategy can be appealing, but the opportunity comes with additional responsibilities.

Nashville requires a short-term rental permit, while Franklin has its own Short-Term Vacation Rental approval and zoning requirements. Both markets also have rules and considerations involving insurance, occupancy, responsible parties, taxes, and property operations.

The most important step is to verify the property's eligibility before you make an investment decision.

Don't assume that because a nearby property is operating as an Airbnb, the property you're considering will qualify under the same rules.

If you're evaluating a short-term rental opportunity in Nashville or Franklin, the Ben Kinney Team can help you research properties, understand the local real estate landscape, and evaluate opportunities with your investment goals in mind. With resources such as REMINE and access to off-market opportunities, the team can bring additional tools to the property search.