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Before You Buy a Nashville Short-Term Rental

A due diligence guide for buyers and investors. What to check, in what order, before you count on short-term rental income from a Nashville property.

Reviewed October 2026 by Atlas Bedrock.

A listing that says "STR eligible," a property already booking on Airbnb or a seller who holds a permit tell you what someone else believes or did. They do not tell you whether you can get a short-term rental property permit (STRP) for that property. The answer is property-specific, and it turns on facts you can check before you commit.

1. Confirm the Zoning, Then the Permit Type

Metro issues two kinds of STRP: owner-occupied, where the owner permanently lives at the property, and not owner-occupied, where the owner does not. They follow different rules, so start by deciding which one your plan needs.

For a not-owner-occupied permit, zoning decides whether a new permit is possible at all. Metro lists the districts where new not-owner-occupied permits are a use permitted with conditions, including mixed-use (MUN, MUL, MUG, MUI), office (OG, OR and ORI), commercial (CN, CL, CS, CA, CF), downtown (DTC) and SCN, SCC and SCR districts, along with their alternative (-A) versions where they exist. New not-owner-occupied permits are not allowed in AR2a, R, RS or RM districts.

Look up the parcel's actual zoning rather than relying on a listing, and read the full district name. A one-letter difference changes the answer.

2. Read Any SP or PUD Conditions

If the property sits in a Specific Plan (SP) or Planned Unit Development (PUD), the base zoning list does not settle the question. Metro issues permits there only if the SP or PUD allows the use. That means reading the plan's own conditions, which can be specific to that development.

3. Treat the Seller's Permit as the Seller's

An existing permit is history, not a promise. Metro states that existing not-owner-occupied permits in districts where new ones are no longer allowed may be eligible for renewal, but they are not transferable when the property is sold or transferred. If your numbers depend on short-term rental income, confirm that you can obtain your own permit before you rely on the seller's.

4. Decide Who Will Own It

Ownership structure affects eligibility. For an owner-occupied permit, Metro requires the owner to be a natural person who permanently lives at the property, so LLCs, corporations and trusts are not eligible. For a not-owner-occupied permit, an entity can own the property, but the application has to document the chain of ownership from the entity on the deed to the applicant, and the ownership information must match the recorded deed.

If you plan to buy in an LLC, settle that before closing, not after.

5. Check the Private Restrictions

Zoning is only half of it. HOA documents, condominium declarations, bylaws, covenants and deed restrictions can prohibit or limit short-term rentals even where zoning allows them. Metro's application asks the applicant to confirm that operating the rental would not violate any of these, and to provide HOA information whether or not there is an HOA. Get the documents and read the rental and leasing sections before you go under contract, or make your contract contingent on that review.

6. Look at the Building Itself

A not-owner-occupied permit covers a dwelling with no more than four sleeping rooms, rented to a single party. Metro's checklist also calls for a floor plan of the whole dwelling showing every room, door, window and smoke detector, certified for single and two-family dwellings by a state-licensed architect, engineer or home inspector, and liability insurance of at least $1 million per occurrence. Multifamily buildings with three or more dwellings require a Fire Marshal inspection. If the layout, the bedroom count or the insurance picture does not fit, factor that into the price or the plan.

7. Verify Everything Current

Public records lag reality, and rules change. Ownership may not reflect a recent sale, and a requirement you read last year may have changed since. Metro moved STRP applications to a new online process on March 11, 2026. Anything your decision depends on should be verified now, from the current record and Metro's current requirements.

A Short Checklist

  • Which permit type does my plan need: owner-occupied or not owner-occupied?
  • What is the parcel's exact zoning, and does it allow a new permit of that type?
  • Is the property in an SP or PUD, and do its conditions allow short-term rental use?
  • Am I relying on a seller's permit that may not transfer?
  • Does my ownership structure fit the permit type?
  • Do HOA, condominium or deed restrictions allow it?
  • Does the building fit the sleeping-room, floor plan, insurance and safety requirements?

Next: Nashville STRP Application Documents: What Metro Asks For.

Sources

Want It Checked for a Specific Property?

The STRP Property Review researches the actual parcel and gives you written findings on what the record confirms, what it rules out and what is still open.

See the STRP Property Review Ask a Question First