Nashville vs Palm Springs: Short-Term Rental Rules Compared (2026)
Nashville is currently "allowed with permit" while Palm Springs is "restricted". On cost, Nashville is the cheaper market to license ($313 vs $1,046). Full verified details for both markets below โ always confirm current requirements with each jurisdiction.
Side by side
| Rule | Nashville, TN | Palm Springs, CA |
|---|---|---|
| Legal status | Allowed with permit | Restricted |
| Permit required | Yes | Yes |
| Permit name | Short Term Rental Property (STRP) Permit | Vacation Rental Registration Certificate |
| Permit fee | $313 | $1,046 |
| Renewal | Annual | Annual |
| Primary residence only | No | No |
| Owner occupancy required | No | No |
| Night cap / year | None found | None found |
| Minimum stay | 1 night(s) | None found |
| Total occupancy taxes | ~16.75% | ~12.5% |
| Last verified | July 12, 2026 | July 10, 2026 |
Compare guest tax loads
Switch between the two markets to see itemized occupancy taxes on the same stay.
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)ยท collection varies | $31.50 |
| Davidson County local option sales tax (2.75%)ยท collection varies | $12.38 |
| Metro Nashville-Davidson County Hotel Occupancy Privilege Tax (7%)ยท collection varies | $31.50 |
| Total tax (16.75%) | $75.38 |
| Guest pays | $525.38 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Nashville, TN
Short-term rentals are legal in Nashville (Metro Nashville-Davidson County) only with a Short Term Rental Property (STRP) permit from the Metro Codes Department, which costs $313 and must be renewed annually. The biggest restriction is zoning: new not-owner-occupied (investor) permits are banned in residential districts (AR2A, R, RS, RM) and are only issued in commercial, mixed-use, and downtown districts, while owner-occupied permits remain available in most residential zones (limited to natural persons, one permit per lot in single- and two-family districts, max four sleeping rooms). Always confirm current requirements with the city before operating.
Full Nashvillerules, playbook & sources โPalm Springs, CA
Short-term rentals (stays of 28 nights or less) are legal in Palm Springs only with a city Vacation Rental Registration Certificate ($1,046 per year as of December 1, 2025, plus a one-time $25 TOT permit), and each owner may hold just one certificate. The biggest restrictions are the annual contract caps โ 26 rental contracts per calendar year for post-October 17, 2022 permittees (grandfathered 'existing permittees' keep 32 plus 4 third-quarter contracts after Ordinance 2118 cancelled a planned 2026 reduction) โ and a 20% per-neighborhood certificate cap under which new applications are refused in neighborhoods at or above the limit. Rentals are limited to single-family dwellings (prohibited in apartments), and hosts remit 11.5% city TOT plus a 1% TBID monthly. Always confirm current requirements with the city before operating.
Full Palm Springsrules, playbook & sources โInformational only โ not legal, tax, or financial advice. Rules change frequently in both markets; verify current requirements with each jurisdiction before operating.