Chattanooga ADUs may be rented for long-term residential use only when the owner occupies the other unit on the property. Short-Term Vacation Rentals (STVRs) are regulated under the Chattanooga Zoning Ordinance with Absentee and Homestay categories; only Homestay (owner-occupied) STVRs are allowed by-right in most residential R districts, restricting STVR use of ADUs to owner-occupied properties. Absentee STVR overlay districts apply elsewhere.
Chattanooga's Short-Term Vacation Rental Ordinance distinguishes Homestay STVRs (owner-occupied; operator lives on the property) from Absentee STVRs (no on-site owner). Homestay STVRs are permitted in most residential R districts as accessory uses; Absentee STVRs are restricted to commercial, mixed-use, and designated STVR overlay districts established by City Council. ADUs in residential zones therefore can be used as STVRs only when the owner occupies the principal dwelling or the ADU and registers as Homestay. Long-term rentals (30+ days) of an ADU are permitted as long as the owner-occupancy rule under the zoning ordinance is met. STVR permits require annual registration with the Land Development Office, posting of the permit number in all listings, payment of state sales tax (7%) and Hamilton County hotel/motel occupancy tax (4%) plus Chattanooga's local hotel tax, and proof of insurance. Operating without a permit triggers civil penalties and platform takedown notices.
Operating an unpermitted STVR in Chattanooga carries civil penalties per City Code. Booking platforms (Airbnb, VRBO) face takedown requests for unregistered listings. Loss of owner-occupancy converts a Homestay permit to a violation, triggering revocation. Tax non-compliance creates separate Tennessee Department of Revenue enforcement. Both-units-rented ADU configurations violate the Zoning Ordinance accessory use standard.
Chattanooga, TN
Chattanooga does not impose a blanket spay or neuter mandate, but McKamey Animal Center sterilizes shelter pets before adoption and offers low-cost clinics f...
Chattanooga, TN
Chattanooga encourages microchipping for dogs and cats handled by McKamey Animal Center, and impounded animals are scanned for chips before adoption or eutha...
Chattanooga, TN
Chattanooga regulates vegetation through Chapter 21 (Property Maintenance), Article IV (Exterior Requirements), which requires that grass, underbrush, and we...
Chattanooga, TN
Chattanooga sits in a moderate wildland-urban interface along Lookout Mountain, Signal Mountain, and Stringer’s Ridge, and CFD coordinates with TN Division o...
Chattanooga, TN
Chattanooga Fire Department enforces the adopted Tennessee Fire Code on residential propane cylinder storage, capping above-ground container size and requiri...
Chattanooga, TN
Chattanooga has no general City Code ordinance restricting lawn ornaments, garden statues, or yard decorations on private residential property. Items must re...
See how Chattanooga's adu rental restrictions rules stack up against other locations.
Help us keep this page accurate. If you notice an error or outdated information, let us know.