Is Airbnb Legal in Chattanooga? 2026 Rules, Permits & Taxes

Permit required

Yes

Taxes on a stay

17.25%

Fine for hosting without a permit

Up to $500

Listings showing a permit number

0%

Latest rule change

Oct 21, 2025

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or license is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

Every host or property owner renting a home, in whole or in part, for 30 nights or fewer inside Chattanooga city limits, whether the home is the host's residence (Homestay) or not (Absentee).^1,4

Issued by

City of Chattanooga, Development Review and Permitting Division (Land Development Office)

Valid for

One year, renewed annually in the OpenGov portal, where the Renew Now button appears about 30 days before expiry; a certificate more than 30 days past its expiration date cannot be renewed.

Processing

Generally within 30 days; an application lapses if documents, fees and staff comments are not completed within 60 days of submission.

On listings

The number must appear on every listing

Platform checks

The certificate number must be displayed on any materials or platforms used to advertise the rental, and the certificate itself must be posted inside it. The code does not describe a platform-side check.

Fees

Who qualifies

• Homestay: the property is the applicant's primary residence, lived in at least 183 days a year, in the STVR Homestay Overlay or in a commercial zone that permits absentee designations; the applicant is a natural person or a Tennessee business entity whose applicant lives on the premises and proves ownership each year
• Absentee: the property is not the applicant's primary residence; allowed only in commercial and mixed-use zones that allow a hotel (C-C, C-R, C-MU1, C-MU2 and the form-based zones CC, CX, IX, RF, RV and SH) and on parcels of 20 acres or more with common ownership that allow residential use
• No more than five bedrooms in the rental, and no more than 25% of the units in a multi-unit building or development
• Not part of an Affordable Housing PILOT program property, and no City Court code violation on the premises in the six months before applying
• Absentee applications are inspected by the Fire Marshal and a city building inspector
• After a rezoning to a commercial or mixed-use zone, no Absentee certificate for 18 months

How to apply

1. 1 Check the property's zoning and overlay status on the city's short-term rental GIS map and confirm the Homestay or Absentee rules fit.
2. 2 Create a free account in the city's OpenGov portal and choose Apply Online.
3. 3 Upload the requested documents, such as the deed, proof of insurance and escape plans, and the signed code compliance verification form.
4. 4 Pay the non-refundable fee ($250 Homestay or $500 Absentee) before intake is processed, and answer any staff comments within 60 days of submitting.
5. 5 Post the issued certificate in the rental and put the certificate number in every listing.

Permit rules

Certificate required for every host

Every Chattanooga host must hold a valid short-term vacation rental certificate to operate legally, whether the home is lived in or not.⁴

Certificate number in every advertisement

The certificate number issued with the certificate must be displayed on any materials or platforms used to advertise the rental, and the certificate itself must be posted inside the rental.^1,4

One-year certificate, renewed every year

Certificates are valid for one year and must be renewed every year. Renewal opens in the OpenGov portal about 30 days before expiry, and a certificate more than 30 days past expiration cannot be renewed.^1,4

Certificates pass to a new owner of the same property

A valid certificate can be transferred to a new owner for the same property, but not to another address, and the occupancy type cannot change in a transfer.⁴

County and city business license

A host with $3,000 to $100,000 in rental receipts needs a minimal activity license from the county and, where one applies, the city; Chattanooga charges $15 to register, and a city licensee must also hold a Hamilton County license.^9,10

Advertised price must be the total price

Since May 12, 2025 a federal rule requires any advertised price for a short-term rental to show the total price, including mandatory fees; taxes and other government charges may be shown separately.^2,14 In force since May 12, 2025

Homestay: your primary residence, 183 days a year

A Homestay is the host's primary residence, meaning the host lives there at least 183 days a year.⁴ Applies to: Homestay

Homestay applicant must live there and prove ownership

A Homestay applicant must be a natural person or a Tennessee business entity whose applicant lives on the premises, and must prove ownership and residency every year at renewal.¹ Applies to: Homestay

Homestay: overlay district and commercial zones

A Homestay is allowed in commercial zones that permit absentee designations and within the designated STVR Homestay Overlay. A property outside both cannot get a certificate.⁴ Applies to: Homestay

Absentee: commercial zones that allow a hotel only

An Absentee rental, where the host does not live in the home, is allowed only in commercial and mixed-use zones that permit a hotel or motel: C-C, C-R, C-MU1 and C-MU2, and the form-based zones CC, CX, IX, RF, RV and SH.^1,4 Applies to: Absentee

Absentee: also on parcels of 20 acres or more

Absentee rentals are also allowed on any parcel of 20 acres or more under common ownership that allows residential use.¹ Applies to: Absentee

The overlay map has grown twice since 2024

The STVR Overlay District Map was extended in City Council District 1 in June 2024 and in District 5 in October 2025. The city's short-term rental GIS map shows whether an address is inside.⁵ Applies to: Homestay · In force since October 21, 2025

Multi-unit buildings: 25% of units at most

No more than 25% of the units in a multi-unit dwelling or development may be short-term rentals, and the Board of Zoning Appeals cannot waive the cap.^1,4 In force since May 2025

18-month wait after a rezoning

If a property is rezoned to a commercial or mixed-use zone, no Absentee certificate can be issued for it until 18 months after the rezoning takes effect.⁴ Applies to: Absentee

HOAs, condos and landlords can still say no

The city code does not override private agreements or covenants of homeowner associations or developers, and state law lets condominium and homeowner associations restrict short-term rentals.^1,13

Five bedrooms at most

A rental may offer no more than five bedrooms in one dwelling unit.¹

Two guests per bedroom plus two

Maximum occupancy is two persons per bedroom of up to 210 square feet plus two more; for larger bedrooms it is the room area divided by 70 square feet plus two more. The maximum must be posted in the rental.¹

Stays of 30 nights or fewer; none under 24 hours

The rules cover stays of up to 30 consecutive days, and the owner may not be paid for occupancy of less than 24 hours.¹

Local agent: 24/7 phone, on site within two hours

Every rental must name an agent over 18 who answers calls from law enforcement and the city at all hours and reaches the property within two hours of a notice about noise, disorderly conduct or other violations.¹

Noise, waste and parking

Guests must follow the city's noise and waste rules, and adequate on-site parking is required; parking on vegetated areas is generally not allowed.¹

Smoke detectors and life-safety equipment

Each rental needs working smoke detectors as determined by the Fire Marshal, plus other life-safety equipment required by local, state and federal law.¹

Absentee rentals are inspected

For an Absentee application the city asks the Fire Marshal and a building inspector to inspect the property and any associated structures before the certificate is issued.¹ Applies to: Absentee

Proof of insurance with the application

The online application asks for the deed, proof of insurance and escape plans; incomplete or unclear uploads are treated as an incomplete application.⁴

The certificate holder answers for the taxes

The certificate holder is responsible for collecting and remitting all applicable room, occupancy and sales taxes under state law and the city code.¹

Median nightly rate, booked nights

$165

Taxes on that night (17.25%)

$28

Guest pays, before Airbnb and cleaning fees

$193

What the host still handles

• A Tennessee Department of Revenue sales tax account (Tennessee Taxpayer Access Point) for bookings made outside a platform
• A Hamilton County Trustee lodging tax account for bookings made outside a platform; the joint county and city return is due by the 20th of the following month and must be filed even when no tax is due
• A Hamilton County business license and, where one applies, a City of Chattanooga business license ($15 registration); a minimal activity license for $3,000 to $100,000 in receipts, a standard license and business tax registration at $100,000 or more^{6,7,8,9,10,16,19,20}

• Violations of the vacation rental rules are heard by the city's administrative hearing officer, who is not held to the $50 city court cap. The officer may fine up to $500 per violation at a single-family home that is the owner's primary residence, and up to $500 per violation per day at any other property, such as an Absentee rental.^1,3,11
• Three documented violations of city code or state law caused by the rental allow the city to revoke the certificate after a public hearing; the property then cannot get a new certificate for one year.¹
• A certificate is not renewed when the property had three or more documented violations in the previous certificate year, and the city may also refuse renewal after one or two violations.¹
• A fine for breaking a city ordinance in City Court cannot exceed $50, which is why larger penalties go through the administrative hearing officer.¹²
• Lodging tax not paid on time carries interest of 12% a year plus a penalty of 2% a month on the county tax and 1% a month on the city tax.⁶

1. October 21, 2025
   Overlay district extended in Council District 5

   The Short-Term Vacation Rental Overlay District Map was amended to add an area in City Council District 5.⁵

2. May 2025
   Definition restated with the 25% cap on multi-unit buildings

   The definition of a short-term vacation rental was amended in May 2025 so that vacation rentals may not exceed 25% of the total units in multi-unit dwellings or developments.^1,5

3. July 23, 2024
   New zoning ordinance adopted with the vacation rental article

   Ordinances 14137 and 14138 adopted the city's Chapter 38 zoning ordinance, which holds the vacation rental rules in Article XVII (sections 38-83 to 38-95).^1,18

4. June 11, 2024
   Overlay district extended in Council District 1

   The Short-Term Vacation Rental Overlay District Map was amended to add an area in City Council District 1.⁵

5. May 16, 2023
   City Council approves revised short-term vacation rental rules

   The Chattanooga City Council approved revised short-term vacation rental regulations on May 16, 2023.¹⁷

Estimate what a Chattanooga home could earn

1. 1. Code of Ordinances, Chapter 38 Zoning, Article XVII Short-Term Vacation Rentals (sections 38-83 to 38-95) · Municode Library, City of Chattanooga
2. 2. 16 CFR Part 464 - Rule on Unfair or Deceptive Fees · Electronic Code of Federal Regulations
3. 3. Code of Ordinances, Chapter 21, Article VI: Office of Administrative Hearing Officer (sections 21-232 and 21-239) · City of Chattanooga
4. 4. Apply for Short-Term Vacation Rental Certificate · City of Chattanooga
5. 5. City of Chattanooga Zoning Ordinance Amendments (last updated 11/4/2025) · City of Chattanooga
6. 6. Hamilton County and the City of Chattanooga Hotel/Motel Occupancy Privilege Tax return · Hamilton County Trustee
7. 7. Trustee · Hamilton County Government
8. 8. Taxation of Short-Term Rental Units (June 2026) · Tennessee Department of Revenue
9. 9. SUT-48 - Short-Term Rentals - Reporting Requirements · Tennessee Department of Revenue
10. 10. Business Licenses · City of Chattanooga
11. 11. Code Enforcement: Administrative Hearing Officer Programs · UT Municipal Technical Advisory Service (MTAS)
12. 12. Definitions of Ordinance and Penalties · UT Municipal Technical Advisory Service (MTAS)
13. 13. Summary of the Short-Term Rental Unit Act · UT Municipal Technical Advisory Service (MTAS)
14. 14. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions · Federal Trade Commission
15. 15. Active Short-Term Vacation Rentals · City of Chattanooga Hub (open data)
16. 16. FY 2019 Proposed Operating and Capital Budget · City of Chattanooga
17. 17. STVR: Chattanooga · Chattanooga-Hamilton County Regional Planning Agency
18. 18. Index of Captions, Ordinances 2024 · City of Chattanooga
19. 19. Local Sales Tax Rates Map · Tennessee Department of Revenue
20. 20. Occupancy tax collection and remittance by Airbnb in Tennessee · Airbnb Help Center