Regulatory Overview
State STR LicenseNot Required
State Preemption LawNo
Permit RequiredNone at State Level
Owner-Occupied RequiredNo
Last Verified2026-03
Official source: https://www.tn.gov/revenue
Tax Breakdown
7%
State Sales Tax
0%
Lodging / TOT
Est. Total Tax Burden~7%
Total is an estimate. Local taxes, county surcharges, and platform fees vary. Always verify with your local tax authority.
Key Rule Summary
No state STR license required. No owner-occupancy requirement at state level. Sales tax applies. Nashville and Memphis have city-level permit systems. Smoky Mountains (Sevier County) is one of the top STR markets in the US with very permissive rules.
Major City Rules
4 cities tracked
Nashville
Moderate
Owner-occupied permit (no limit) and non-owner permit ($300) available, non-owner limited to one property
Sevierville / Gatlinburg / Pigeon Forge
Host Friendly
One of the nation's top STR markets. City/county permits, very permissive, high RevPAR.
Memphis
Moderate
STR permit required, zoning compliance
Chattanooga
Host Friendly
Business license, state tax, permissive
Housing Market Data — US Census ACS
ACS 5-Year 2022
3,050,850
Total Housing Units
11.1%
Vacancy Rate
67.1%
Owner-Occupied
32.9%
Renter-Occupied
61,469
Seasonal/Vacation Units
2.0%
Seasonal Unit %
Source: US Census Bureau ACS 5-Year Estimates · Seasonal/vacation units are a proxy for STR-receptive housing stock.