Primary-Residence-Only Rule: Austin vs Nashville
How do primary-residence-only rule rules compare between Austin, TX and Nashville, TN?
Austin has fewer restrictions than Nashville.
Austin, TX
Travis County
Travis County does not restrict short-term rentals to a host's primary residence. Investor-owned and second-home STRs are permitted across unincorporated areas, consistent with Texas HB 1620 statewide preemption of ownership-status conditions.
View full Austin rules →Nashville, TN
Davidson County
Non-owner-occupied (Type 2) STRs are barred from Nashville residential zones; only commercial, mixed-use, and a closed grandfathered list remain eligible, with non-transferable permits expiring on sale under Metro Code 17.16.250.C.
View full Nashville rules →Key Facts Comparison
| Fact | Austin | Nashville |
|---|---|---|
| Primary-residence rule | None | - |
| Investor STRs allowed | Yes | - |
| LLC ownership OK | Yes | - |
| Preemption source | TX HB 1620 (2025) | - |
| Type 2 residential | - | Prohibited prospectively |
| Grandfather transfer | - | Lapses on sale |
| Allowed zones | - | Commercial, mixed-use |
| Authority | - | BL2017-608, TCA 13-7-602 |
Highlighted rows indicate differences between cities.
Austin FAQ
Can I buy a Lake Travis cabin solely to short-term rent?
Yes. Travis County imposes no primary-residence requirement, and state law preempts any such restriction on STRs.
Does an LLC-owned STR face extra rules?
No county-level extra rules apply. Standard Texas hotel-occupancy tax registration and any septic permits still apply for rural properties.
Nashville FAQ
If I buy a grandfathered Type 2, can I keep operating?
No. Grandfathered Type 2 permits are tied to the original owner and cannot be transferred. The new owner must operate as Type 1 if eligible.
Did state law override Nashville's rules?
Tennessee's STR Unit Act provides partial preemption but explicitly preserves local registration and zoning frameworks adopted before the cutoff date in TCA 13-7-602.
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