Is Airbnb legal in Knoxville, TN?

Restricted

Airbnb is restricted in Knoxville, TN

A permit is required before advertising. Type 1 permits go only to a natural person at their principal residence in residential zones, one per person, while Type 2 covers non-owner-occupied units restricted to non-residential zones. The Tennessee state act grandfathers STRs already in use before a local ordinance.

Knoxville Code Ch. 16, Art. XVView the ordinance

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 Knoxville

The first step in Knoxville is the city's permit or registration process; check the ordinance for the current fee. The status card above has the full detail on the current rules.

Non-owner investors can operate in Knoxville, 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 Knoxville, but the limits shrink the pool of eligible properties and add compliance cost. Underwrite conservatively and confirm the specific address qualifies before you commit.

Analyze a rental hereCheck long-term rent

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 Knoxville?

A permit is required before advertising. Type 1 permits go only to a natural person at their principal residence in residential zones, one per person, while Type 2 covers non-owner-occupied units restricted to non-residential zones. The Tennessee state act grandfathers STRs already in use before a local ordinance. 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 Knoxville?

Yes. Knoxville 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 Knoxville?

Yes, Knoxville 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 Knoxville?

No specific annual night cap was confirmed for Knoxville, though minimum-stay rules or license caps may effectively limit operations. Check the ordinance.

What taxes apply to a short-term rental in Knoxville?

Short-term rentals in Knoxville 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.