Rutherford County, TN Short-Term Rentals: Permit Requirements (2026)

Tennessee's Short Term Rental Unit Act (Tenn. Code Ann. §13-7-602, enacted 2018) limits a local government's ability to prohibit STR operation by owners who held the property out as a short-term rental before the local rule took effect, provided they had any required permits or paid applicable taxes for at least 6 of 12 months before adoption. Legacy status terminates only on sale, transfer, 30+ months of non-operation, or three or more violations of generally applicable local law. The City of Murfreesboro has not adopted an STR-specific zoning ordinance, and the Rutherford County Zoning Resolution does not address rental duration, so STRs are generally permitted in any residential zone consistent with the underlying use. All STR operators must (1) register annually with the Rutherford County Property Assessor (615-898-7750) per the Short Term Rental Unit Act; (2) obtain a Tennessee business license through the County Clerk ($15) and the relevant city ($15) under Tenn. Code Ann. §67-4-723; (3) collect and remit the 5% local hotel/motel occupancy tax monthly to both Rutherford County and the city where the property is located, authorized under Tenn. Code Ann. §67-4-1401 et seq. (Hotel Occupancy Privilege Tax); (4) collect Tennessee state and local sales tax (7% state + local) under Tenn. Code Ann. §67-6-205 for stays under 90 days; and (5) remit business tax annually to the State of Tennessee. Booking platforms (Airbnb, VRBO) often collect Tennessee state-level sales tax automatically but typically do not collect the local 5% occupancy tax — confirm with the Rutherford County Trustee.