State guide · Tennessee

Is rental arbitrage legal in Tennessee?

Yes, rental arbitrage is legal in Tennessee with the landlord's written consent and local compliance. Tennessee lets local governments regulate short-term rentals, with state protections for some existing permitted units. Nashville is the strictest major market, limiting non-owner-occupied permits by zoning district. Mid-term stays of 30+ nights generally fall outside STR permitting.

Summary reviewed . Not legal advice; confirm with the city before signing a lease.

State rules

What applies statewide.

Who regulatesCities, counties and HOAs
TaxesState and local sales tax plus local occupancy taxes apply to short stays.
Mid-term (30+ nights)Mid-term stays generally fall outside STR permitting, but confirm with the city.
Landlord consentRequired. Subletting without written permission breaks most leases in every state.
Before you sign

Your checklist.

  • Written landlord consent covering STR, MTR or both
  • City permit or registration status for the address
  • HOA or condo bylaws reviewed
  • Tax accounts opened for state and local lodging taxes
  • STR liability insurance naming the landlord

Summary reviewed October 2026. Rules change; this is not legal advice. Confirm with the city before signing a lease.

Tennessee markets

City-by-city rules and listings.

Tennessee FAQ.

Is rental arbitrage legal in Tennessee?

Yes, with landlord permission and local compliance. Tennessee lets local governments regulate short-term rentals, with state protections for some existing permitted units. Nashville is the strictest major market, limiting non-owner-occupied permits by zoning district.

Do I need a permit for an Airbnb in Tennessee?

It depends on the city. Nashville: permit required, zoning limits. Mid-term stays generally fall outside STR permitting, but confirm with the city.

What taxes apply to short-term rentals in Tennessee?

State and local sales tax plus local occupancy taxes apply to short stays.

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