Tennessee Bans Local Rent Control

Tenn. Code Ann. §§ 66-35-101 to 66-35-103 preempt local rent regulation statewide. Section 66-35-102 provides that "a local governmental unit shall not enact, maintain or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property." Section 66-35-101 defines "local governmental unit" to include counties and incorporated municipalities. The statute also bars local governments from requiring below-market unit set-asides or conditioning zoning changes, variances, or permits on them. It permits only "purely voluntary incentive-based" affordable-housing programs using tax incentives or subsidies. There is no statewide rent cap, and no Tennessee city has enforceable rent control.

Any local rent-control ordinance is preempted and unenforceable under Tenn. Code Ann. § 66-35-102. There is no penalty schedule on rent increases themselves; a landlord need only follow the lease terms and applicable notice requirements before raising the rent.