Chattanooga, TN Short-Term Rentals: Extended Home Share (2026)
Key Facts
- Governing section
- City Code § 38-83
- Allowed zones
- Hotel-permitting mixed-use/commercial zones
- Alternate path
- 20+ acre common-ownership parcel
- Contrast
- Homestay allowed in residential zones
Summary
Non-owner-occupied 'absentee' short-term rentals are confined to Chattanooga's mixed-use and commercial zones that allow hotels, or to large parcels of 20+ acres under common residential ownership: unlike owner-occupied homestays.
New non-owner occupied/absentee properties are only allowed throughout the City in the mixed-use and commercial zones that allow a hotel. They are also allowed within any parcel of at least 20 acres or more with common ownership that allows for residential uses.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 40 Update 1).
Full Breakdown
City Code § 38-83 restricts new absentee (non-owner-occupied) short-term vacation rentals to mixed-use and commercial zones that permit hotels citywide, or to any parcel of at least 20 acres under common ownership that allows residential use. Section 38-86(d) reinforces this: if a zoning condition narrows a commercial zone's permitted uses, an absentee rental is allowed only where a hotel or motel remains an allowable use, and the Building Code must be met through permitting. Owner-occupied homestays, by contrast, are allowed in any residential zone within the overlay district.
Violations & Fines
Operating an absentee rental outside an eligible zone without City review is a zoning violation, and the Development Review and Permitting Division can deny or revoke the certificate.
Frequently Asked Questions
Can I run a non-owner-occupied rental in a Chattanooga residential neighborhood?
What's the difference from a homestay rental?
Sources & Official References
Other rules in Chattanooga
Compare Chattanooga to another location·View the Tennessee short-term rentals overview
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