Nashville, TN Accessory Structures: ADU Rental Restrictions (2026)
Key Facts
- Rule
- New DADUs can't be owner-occupied STRs
- Applies to
- Single-family, RN, and RL-zoned lots
- Ownership
- DADU must share owner with main house
- Grandfathered
- STR permits active before Aug. 1, 2024
- Citation
- Metro Code § 17.16.030(G)(12)
Summary
Metro Nashville bars newly built or converted detached accessory dwelling units on single-family, RN-, or RL-zoned lots from operating as owner-occupied short-term rentals under the zoning code's ADU standards.
Short Term Rental Property (STRP). Upon enactment of this section, on any single-family-zoned, Residential Neighborhood-zoned, or Residential Limited-zoned lot where a new detached accessory dwelling unit is built, or on any single-family-zoned, Residential Neighborhood-zoned, or Residential Limited-zoned lot where a new detached accessory dwelling unit is established via conversion of an existing accessory structure, short term rental property—owner occupied, is not a permitted use in the accessory dwelling unit.13.Utilities. The detached accessory dwelling unit may be served by separate utility meter(s).H.Design-Based Multi-Family.1.Townhouses, house courts, townhouse courts, plex houses, and manor houses shall be permitted within the RN1 and RN2 zoning districts as regulated by Chapter 17.38.2.Townhouses, house courts, townhouse courts, plex houses, manor houses, multiplexes, low-rise courtyard flats, and low-rise flats shall be permitted within the RL1, RL2, and RL3 zoning districts as regulated by Chapter 17.38.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 53 | Charter: Republication 9).
Full Breakdown
Metro's zoning code allows one detached accessory dwelling unit (DADU) behind a single-family home, but Section 17.16.030(G)(12) blocks a popular workaround: on any single-family, RN, or RL-zoned lot, a DADU that is newly built or converted from an existing accessory structure cannot be used as an owner-occupied short-term rental. The DADU must also stay under the same ownership as the main house, and one of the two units has to be owner-occupied under Section 17.16.030(G)(3)(d). Units with an active short-term rental permit issued before August 1, 2024 are grandfathered in.
Violations & Fines
Building without a permit, using a disqualified DADU as an owner-occupied short-term rental, or leasing the unit separately from the main house voids eligibility and can trigger a zoning code violation and permit denial or revocation by the zoning administrator.
Frequently Asked Questions
Can I rent my new backyard cottage on Airbnb in Nashville?
Does this apply to my existing rental if I already have a permit?
Sources & Official References
Other rules in Nashville
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