Do I need a permit for short-term rentals in Chattanooga?

**Yes**, Chattanooga requires a Short-Term Vacation Rental (STVR) Certificate for rentals under 30 days. You need to apply for this certificate annually. The renewal fee is $250. Non-owner occupied rentals face zoning restrictions and are limited to specific districts within the city.

What is the TOT tax rate in Chattanooga?

**4% is the TOT** (Transient Occupancy Tax) rate for short-term rentals in Chattanooga. Hosts are required to collect this tax from guests and remit it to the city. This is in addition to any state sales taxes that may apply. Consult the city's finance department for details.

Are short-term rentals allowed in Chattanooga?

**Yes, with restrictions**, short-term rentals are permitted in Chattanooga, but non-owner occupied rentals are limited. You need to check the zoning regulations to confirm if your property is in a permitted zone, particularly the STVR Overlay District. Owner-occupied rentals ('Homestays') have fewer restrictions than non-owner occupied rentals.

Do I need to live in my property to rent it on Airbnb in Chattanooga?

**It depends**; Chattanooga distinguishes between owner-occupied ('Homestays') and non-owner occupied rentals. If you do not live at the property, your rental is subject to stricter zoning regulations and is only allowed in specific districts. Owner-occupied rentals have more flexibility regarding location within the city.

Can renters host on Airbnb in Chattanooga?

**No**, Chattanooga regulations do not explicitly address whether tenants can host on Airbnb. The regulations primarily focus on property owners obtaining the required STVR Certificate and complying with zoning rules. It is advisable to review lease agreements and consult with the property owner before listing a rental unit.

Chattanooga

Prohibited

STRs Allowed

TennesseeLast updated: February 10, 2026

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Summary

The City of Chattanooga requires a Short-Term Vacation Rental (STVR) Certificate for all rentals under 30 days. Regulations distinguish between owner-occupied 'Homestays' and non-owner occupied rentals, with the latter being strictly limited to specific zoning districts and the STVR Overlay District.

Restriction Level

🚫

Prohibited

Score: 100 (lenient)

Why this classification:

•Residential STRs prohibited
•Standard permit fee: $250
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in the City of Chattanooga, you must first determine if your property is in a permitted zone, as non-owner occupied rentals are banned in many residential areas like R-1. You must apply for an annual STVR Certificate which costs $500 for the first year and $250 for renewals. Hosts are required to carry $1 million in liability insurance and pass a fire safety inspection. Once permitted, you must collect and pay a 4% city occupancy tax in addition to state sales taxes.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$250

Processing Time

30-45 days

6 Things Hosts Often Miss

1.Non-owner occupied STVRs are strictly prohibited in R-1 and R-2 zones outside of the STVR Overlay.
2.The application fee ($250) and the annual certificate fee ($250) are both due upon initial application.
3.Proof of primary residence is strictly verified via voter registration records.
4.Any property with a code violation or unpaid taxes is ineligible for an STVR certificate.
5.Advertising a property without a valid permit number is a violation that can lead to immediate fines.
6.Short-term rentals are strictly prohibited in Accessory Dwelling Units (ADUs) in most residential zones.

Regulation Details

Eligibility(10)

•Chattanooga: Properties with affordable housing restrictions or subsidies cannot be used for short-term rentals.
•Chattanooga limits hosts to a maximum of 2 STR properties per owner.
•Chattanooga: Absentee (non-owner occupied) permits are now prohibited in R-1 residential zones for all new applicants.
•Chattanooga prohibits STRs in the following property types: Affordable Housing PILOT Program units.

Requirements(17)

•Chattanooga: Existing permits are 'grandfathered' but will be lost if the property is sold or if there are three major violations.
•Chattanooga: Hosts must report their rental activity monthly to the city, even if platforms collect taxes.

Application Process(10)

•Step-by-step guide to get an STR permit in Chattanooga: Step 1: Verify Zoning and Overlay District - Check if the property is within the Short-Term Vacation Rental District (Overlay) or a permitted commercial zone. New absentee permits are prohibited in R-1 zones. Estimated time: 1 day. More info: https://chcrpa.org/stvr-interactive-map/ Step 2: Obtain City Business License - Register for a standard City of Chattanooga business license through the Finance Department. Documents needed: Business information, FEIN or SSN. Estimated time: 1-5 days. Cost: 15. More info: https://chattanooga.gov/finance/business-license Step 3: Prepare Required Documentation - Gather proof of ownership, $1M liability insurance, and the Code Compliance Verification Form. Designate a 24/7 local contact. Documents needed: Deed, Insurance Certificate, Local Agent Info. Estimated time: 1 week. More info: https://chattanooga.gov/land-development/short-term-vacation-rental Step 4: Submit STVR Application via OpenGov - Apply online through the city's OpenGov portal and pay the applicable fee ($250 for homestays, $500 for absentee). Estimated time: 30-45 days. Cost: 250. More info: https://chattanoogatn.opengov.com/ Step 5: Inspection (Absentee Only) - For non-owner occupied units, schedule and pass a life-safety inspection by the Fire Marshal or Building Inspector. Estimated time: 1-2 weeks.

Fees & Costs(1)

•Chattanooga charges a registration fee of $250 (annual). Extended/additional fee: $500 (Initial and renewal fee for Absentee (non-owner occupied) rentals is $500; Homestay fee is $250.).

Taxes(3)

•Tennessee has a state sales tax of 7% that applies to STR rentals.
•Chattanooga: In multi-family buildings, no more than 25% of the total units can be used as short-term rentals.

Limits & Restrictions(5)

•Chattanooga limits stays to a maximum of 30 nights.
•Chattanooga enforces quiet hours: 10:00 PM - 7:00 AM.
•Chattanooga limits STRs to a maximum of 10 guests. Formula: 2 persons per bedroom (max 5 bedrooms for R-1/R-2) plus 2 additional persons; absolute max 9 bedrooms for other zones.

Safety Requirements(1)

•Chattanooga requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Local agent available 24/7 and able to arrive on-site within 2 hours, Annual life safety inspection required for absentee units, Floor plan showing egress required for permit.

Penalties(3)

•Chattanooga enforces the following penalties for STR violations: First offense: $500 fine. Second offense: Suspension of certificate. Third offense: Revocation of certificate. Daily fine: $500. Maximum fine: $500 per day. Permit may be revoked for violations.
•Chattanooga: Failure to display the permit number in your online advertisement can result in immediate fines and permit denial.

Exemptions(2)

•Chattanooga exempts the following from STR regulations: long-term rentals (30+ days), extended stays.
•Chattanooga: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Tennessee Markets

Knoxville

Tennessee

Moderate

The City of Knoxville regulates short-term rentals through a three-tiered permit system based on occupancy type and zoning. All hosts must obtain a permit, pass a fire safety inspection, and remit a combined 8% city occupancy tax in addition to state sales tax.

Permit required

0.1% total tax

Nashville

Tennessee

Moderate

Nashville has a strict STRP permitting system that differentiates between owner-occupied and investment properties. Non-owner occupied permits are increasingly restricted in residential zones following legislation passed in 2018 and subsequent updates.

Permit required

0.1% total tax

Gatlinburg

Tennessee

Moderate

The City of Gatlinburg requires all short-term rental hosts to obtain an annual STR Permit and a City Business License. Compliance includes a mandatory fire safety inspection and the collection of a 2.125% local Transient Occupancy Tax in addition to state sales tax.

Permit required

0.1% total tax

Murfreesboro

Tennessee

Prohibited

Murfreesboro regulates short-term rentals through strict zoning prohibitions in residential areas and requires registration with the Rutherford County Property Assessor and payment of a 5% city occupancy tax.

Permit requiredPrimary residence

0.1% total tax

Chattanooga

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

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Regulation Details

Eligibility(10)

Requirements(17)

Application Process(10)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(5)

Safety Requirements(1)

Penalties(3)

Exemptions(2)

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Step-by-Step Application Guide

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Chattanooga

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Step-by-Step Application Guide

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Frequently Asked Questions

1Do I need a permit for short-term rentals in Chattanooga?

2What is the TOT tax rate in Chattanooga?

3Are short-term rentals allowed in Chattanooga?

4Do I need to live in my property to rent it on Airbnb in Chattanooga?

5Can renters host on Airbnb in Chattanooga?

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Other Tennessee Markets

Knoxville

Nashville

Gatlinburg

Murfreesboro