Short-Term Rentals in Knoxville, TN

If you live in Knoxville or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Knoxville has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Primary-Residence-Only Rule

Knoxville's Type 1 short-term rental permit, the only option in residential zoning districts, can go only to an owner renting out their own principal residence, with a narrow exception for owner-occupied duplexes.

Key details: Permit type: Type 1: owner-occupied, residential only. Residency proof: 2 of 5 listed documents. Permit cap: One Type 1 permit per person. Application fee: $70. Duplex rule: One side only, must live there.

Operating a Type 1 rental that isn't your actual home, or without a valid permit at all, draws a $50-per-day civil citation and can get the permit revoked under Sec. 16-635.

Short-Term Rental Parking Rules

Every Knoxville short-term rental application must include a site plan showing designated off-street parking spaces and the maximum number of vehicles allowed for overnight guests. The requirement sits inside the STR permit application under Section 16-612 and applies to all three permit types the city issues.

Key details: Site plan must show: Off-street parking spaces, max vehicles. Filed with: Business license and tax office. Type 1 permit cap: 1 per person, owner-occupied only. Type 2 permit cap: 2 per person/entity, nonresidential zones. Type 3 permit: Closed window, pre-March 1, 2017 units.

Section 16-632 treats operating or advertising a short-term rental without a valid permit as a public safety hazard, punishable by a civil citation of fifty dollars ($50.00) per day against the operator, owner or local contact person. Any violation of the article, including a false or incomplete site plan, is separately declared a public nuisance under Section 16-633, carrying the same fifty-dollar daily citation and possible abatement. Section 16-635 lets the city revoke the permit outright for false application information or a safety threat, with an appeal to a three-member panel available under Section 16-636 within ten days of revocation.

Taxes & Fees

Knoxville charges short-term rental operators a $70 application fee for an owner-occupied Type 1 permit and $120 for Type 2 (non-owner-occupied) or Type 3 permits, collected by the business license & tax office with no proration and no refunds. Operators also owe the city's hotel occupancy privilege tax, state sales tax and state gross receipts tax.

Key details: Type 1 permit fee: $70.00. Type 2/3 permit fee: $120.00. Annual renewal fee: $50.00 (Type 1 & 2 only). Taxes owed: hotel occupancy privilege tax, sales tax, gross receipts tax. Fee refund policy: non-refundable once permit issued.

Operating or advertising a short-term rental without a valid permit, which includes failing to pay the required application fee, is a civil citation of fifty dollars per day under Sec. 16-632. Failing to pay applicable taxes can support permit revocation under Sec. 16-635 for violating regulations of the article, and a revoked operator must wait six months before reapplying and must pay the full permit fee again on reapplication under Sec. 16-636.

Short-Term Rental Permits

Knoxville STR operators must apply through the business license and tax office, naming a 24/7 local contact who can respond to complaints within 45 minutes.

Key details: Local contact availability: 24/7, 45-min response. Application office: Business License & Tax Office. Permit types: Type 1, 2, and 3. Type 3 window: Closed, pre-2017 units only.

Submitting false information on an application, or an owner's failure to maintain a compliant local contact person, can support permit denial or revocation under the STR ordinance.

This is not one of those rules that cities tend to ignore. Knoxville actively enforces its short-term rental permits requirements.

Occupancy Limits

Knoxville caps a short-term rental unit at two transients per bedroom plus two more, with an absolute ceiling of twelve people total, counting transients and anyone else residing in or using the unit. The formula applies to every permit type under the city's STR ordinance.

Key details: Occupancy formula: 2 transients per bedroom, plus 2. Absolute cap: 12 persons total, all occupants. Applies to: Type 1, 2 and 3 permits alike. Bedroom count set by: floor plan filed with permit application. Overcrowding penalty: $50/day civil citation.

Exceeding the occupancy cap is a violation of the article and a declared public nuisance under Sec. 16-633, carrying a civil citation of fifty dollars per day that can be issued to the operator, the owner, the occupants, or the local contact person. A sustained violation can also support permit revocation under Sec. 16-635(3), after which the operator must wait six months before reapplying and pay the full fee again under Sec. 16-636.

Host Presence Rule

Knoxville's Type 1 short-term rental ordinance explicitly says the owner-host doesn't have to remain on site or be present while guests occupy the property.

Key details: Host presence: Not required during occupancy. Applies to: Type 1 owner-occupied permit. Governing text: Sec. 16-613(a)(1).

There's no presence violation to cite: the rule affirmatively allows absentee hosting. Operating without a permit or submitting false application information still triggers the $50-per-day citation under Secs. 16-632 and 16-635.

Knoxville is more permissive than most cities when it comes to host presence rule. That said, there are still limits.

The Bottom Line

Knoxville's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Knoxville is broadly strict or permissive.

This guide is based on Knoxville's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.