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.
After contentious 2017-2018 BL2017-608 amendments, Metro Council eliminated Type 2 STR permits in residential zoning districts going forward. Properties holding valid Type 2 permits before the cutoff were grandfathered, but those permits do not transfer to new owners and lapse permanently if not renewed. The Tennessee Short-Term Rental Unit Act (TCA 13-7-602) partially preempts local STR bans, but Tennessee courts upheld Nashville's grandfathering scheme because it operated prospectively. Type 2 in commercial zones still requires the same registration, taxes, and insurance as Type 1.
Operating a Type 2 STR in a residential zone without a grandfathered permit triggers daily fifty-dollar civil penalties, immediate cease-and-desist, and platform delisting requests by Metro Codes.
Nashville, TN
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