Is Airbnb legal in Chattanooga, TN?
RestrictedAirbnb is restricted in Chattanooga, TN
An annually renewed certificate is required, split into a homestay for a primary residence and an absentee class for non-owner-occupied units. Absentee STRs are heavily restricted, allowed only in commercial zones that permit hotels and subject to a hard 25 percent density cap the board cannot waive.
Verified July 2026. Not legal advice. Rules change and may be enforced differently than written. Confirm with the city before you list.
Key rules at a glance
Permit or registration
Required
Primary residence only
No
Annual night cap
Not confirmed
Registration fee
See ordinance
How short-term rentals work in Chattanooga
An annually renewed certificate is required, split into a homestay for a primary residence and an absentee class for non-owner-occupied units. Absentee STRs are heavily restricted, allowed only in commercial zones that permit hotels and subject to a hard 25 percent density cap the board cannot waive.
Non-owner investors can operate in Chattanooga, but within the city's limits above. Read the ordinance closely before you buy, because permits, caps, or zoning can make a specific property ineligible.
At the state level, Tennessee limits how far cities can go in banning short-term rentals.
What it means for investors
An STR can still work in Chattanooga, but the limits shrink the pool of eligible properties and add compliance cost. Underwrite conservatively and confirm the specific address qualifies before you commit.
Short-term rental rules elsewhere in Tennessee
Last reviewed July 2026. Informational and educational only, not legal advice, and no attorney-client relationship is created. Rules change and may be enforced differently than written. Verify the current ordinance with your local jurisdiction or counsel before acting.
Frequently asked questions
Is Airbnb legal in Chattanooga?
An annually renewed certificate is required, split into a homestay for a primary residence and an absentee class for non-owner-occupied units. Absentee STRs are heavily restricted, allowed only in commercial zones that permit hotels and subject to a hard 25 percent density cap the board cannot waive. This reflects the rules as of July 2026; confirm the current ordinance with the city before you list.
Do I need a permit to run a short-term rental in Chattanooga?
Yes. Chattanooga requires a permit or registration to operate a short-term rental, and platforms increasingly require the permit number on the listing.
Can I run a non-owner-occupied Airbnb in Chattanooga?
Yes, Chattanooga does not require you to live in the property, though other limits such as caps, zoning, or licensing may still apply.
Is there a limit on how many nights I can rent in Chattanooga?
No specific annual night cap was confirmed for Chattanooga, though minimum-stay rules or license caps may effectively limit operations. Check the ordinance.
What taxes apply to a short-term rental in Chattanooga?
Short-term rentals in Chattanooga are generally subject to state and local lodging or occupancy taxes on top of income tax. Airbnb and VRBO collect some of these automatically, but not always all of them, so confirm the current rate and who remits it with Tennessee and the city.