Regulation record · Chattanooga, TN

Is Airbnb arbitrage legal in Chattanooga?

STR with Permit

Only in commercial zones that permit hotel or motel use. Residential areas are homestay-only.

Non-owner (absentee) short-term vacation rentals are allowed only in commercial zones that permit hotel or motel use. Residential areas, including the STVR Overlay, are homestay-only. Mid-term stays of 31+ nights are allowed.

Last reviewed October 2026 by the ArbiBase Regulations desk. General information, not legal advice. Rules change; confirm with the city or a local attorney before signing a lease.

The rules

What applies in Chattanooga.

Short stays under 30 nights are where permits and taxes kick in. Mid-term stays of 30+ nights are usually a standard lease.

Statewide context: Is rental arbitrage legal in Tennessee?

For owners in Chattanooga: renting your property to an operator

STR statusSTR with Permit

MTR (30+ nights)Mid-term stays of 31+ nights are allowed, per the Regulations team's verified record. Confirm with your lease and any HOA.

TaxesTennessee sales tax and local occupancy taxes apply to short stays; stays of 30 to 89 nights avoid occupancy tax but still owe sales tax.

Market focusMTR-led

Verified regulations · Chattanooga, TN

The verified rules in Chattanooga.

STR with Permit

Verified by the ArbiBase Regulations team on October 19, 2026. Next review April 19, 2027.

Non-owner (absentee) STVRs are allowed only in commercial zones that permit hotel/motel use; residential areas, including the STVR Overlay, are homestay-only. Multi-unit buildings are capped at 25% STVR units, the Board of Zoning Appeals cannot waive zoning or the cap, and no absentee certificate is allowed within 18 months after a rezoning.

16 STR-friendly ZIPs mapped — see them in ArbiBase →

STR ratingSTR with Permit

Permit or licenseRequired. The city permit or license must be in place before the first short stay.

Primary residenceRequired: short stays only in a host's primary residence, which rules out most arbitrage units.

MTR (30+ nights)31

Owner consentYes

Operator permitYes, with owner consent

Primary sources: Apply for Short-Term Vacation Rental Certificate | Chattanooga.gov · City of Chattanooga Zoning Ordinance Amendments (last updated 1/23/2026).

Before you sign

Four checks for every Chattanooga lease.

Confirm the exact address qualifies: zoning district, permit availability or registration.
Get written landlord consent that names short-term or mid-term use.
Read the HOA or condo bylaws. They can ban what the city allows.
Register for occupancy taxes before your first booking.

Already checked

Every Chattanooga listing on ArbiBase cleared this already.

Each one has documented landlord consent and a local rules check before it goes live, so you start at the numbers, not the city code.

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