Knoxville, TN Short-Term Rentals: Occupancy Limits (2026)

Sec. 16-653 sets the math directly: multiply the bedroom count by two, add two more transients, but never exceed twelve total occupants including transients and any other person using the unit. A one-bedroom unit tops out at four transients; a three-bedroom unit could reach eight by formula, but a five-bedroom or larger unit is still capped at twelve regardless of how many bedrooms it has. The bedroom count used for this formula is not left to guesswork: Sec. 16-612 requires every applicant to submit a floor plan describing the use of each room, including the number, location and square footage of all bedrooms, as part of the operating-permit application, so the occupancy cap is fixed at the time the city approves the unit.

The occupancy rule sits in Division 4, 'Operational Requirements,' alongside the tax obligation (Sec. 16-651) and the advertising rule requiring the permit number on every listing (Sec. 16-652), and it applies uniformly to Type 1 owner-occupied units, Type 2 non-owner-occupied units, and Type 3 grandfathered units alike. A complaint about overcrowding is handled like any other STR complaint: the city notifies the operator by mail, the operator has thirty days to respond, and if the city finds the complaint supported by a preponderance of the evidence it can revoke the permit or pursue other enforcement under Sec. 16-634.