STR Rule Watch

Short-Term Rental Laws in Chattanooga, TN (2026)

RestrictedRestricted

Chattanooga allows short-term rentals only with an annual Short-Term Vacation Rental (STVR) Certificate from the Development Review and Permitting Division. Owner-occupied 'homestay' rentals (primary residence at least 183 days/year) are allowed in residential zones only inside the STVR Overlay District plus in mixed-use/commercial zones, while non-owner-occupied 'absentee' rentals are restricted citywide to mixed-use and commercial zones that allow a hotel. Guests pay roughly 17.25% in combined taxes (7% state sales, 2.25% local sales, 4% county occupancy, 4% city occupancy), and violations can draw daily fines with certificate revocation after three documented violations.

✓ Last verified July 21, 2026 · 8 official sources

Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data

Chattanooga STR rules at a glance

Key short-term rental facts for Chattanooga
Legal statusRestricted
Permit requiredYes
Permit nameShort-Term Vacation Rental Certificate
Permit fee$250
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Minimum stay1 night
Total occupancy taxes~17.25% of gross revenue
InsuranceProof of insurance must be uploaded with the STVR certificate application through the city's application portal (alongside the deed and emergency escape plans). The zoning ordinance itself does not specify coverage types or minimum amounts.
EnforcementAdministered by the Development Review and Permitting Division; the Director of the Land Development Office is the zoning enforcement official. The certificate number must be displayed on all advertising/platform listings, and the certificate posted inside the unit. Owners must designate an STVR agent available 24/7 who can appear on-site within two hours of city notification. Absentee applications require Fire Marshal and building inspections before issuance. Renewal is denied after three or more documented violations in the certificate period (discretionary denial possible after one or two), and certificates can be revoked after three documented violations following an Administrative Hearing Officer proceeding; revocation bars reapplication for that property for one year. Denials are appealable to the Board of Zoning Appeals and then Chancery Court within 60 days.
Current rules effective2024-07-23

What will guests pay in taxes on a Chattanooga stay?

Itemized occupancy taxes for Chattanooga, TN — enter your nightly rate to see the real cost breakdown.

Chattanooga occupancy tax calculator

Gross rent$450.00
Tennessee state sales tax (7%)· collection varies$31.50
Local option sales tax (Hamilton County/Chattanooga) (2.25%)· collection varies$10.13
Hamilton County hotel/motel occupancy privilege tax (4%)· collection varies$18.00
City of Chattanooga hotel/motel occupancy tax (4%)· collection varies$18.00
Total tax (17.25%)$77.63
Guest pays$527.63

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Chattanooga requires Short-Term Vacation Rental Certificate to operate a short-term rental — the fee is $250, renewed annual.

Homestay (owner-occupied) STVRs: $250.00 initial application fee and $250.00 annual renewal fee. Absentee (non-owner-occupied) STVRs: $500.00 initial application fee and $500.00 annual renewal fee. Fees are non-refundable, are in addition to any applicable transaction-related fees, and must be paid in full before the application is reviewed. The $250 homestay fee is used as the standard figure here.

Zoning & location rules

Two-track zoning system under Chapter 38 (Zoning), Article XVII. Homestay (owner-occupied, primary residence >=183 days/year) STVRs may locate in any residential zone within the Short-Term Vacation Rental Overlay District (map held by the City Council Clerk; expanded in Council District 1 effective June 11, 2024) and in any mixed-use, commercial, or Form-Based Code zone that allows single-unit detached or accessory dwellings permitting two-unit or multi-unit living. Absentee (non-owner-occupied) STVRs are allowed citywide only in mixed-use and commercial zones that allow a hotel; if zoning conditions on a parcel exclude hotel/motel use, absentee STVRs are barred there too. Absentee STVRs are also allowed on parcels of 20+ acres in common ownership that allow residential uses. STVRs are capped at 25% of total units in a multi-unit dwelling or development, limited to five bedrooms per unit, prohibited in Affordable Housing PILOT Program properties, and a lot may use its primary dwelling or an accessory dwelling unit for STVR but not both.

Taxes

TaxRateWho collects
Tennessee state sales taxApplies to rentals under 90 days on the full sales price including cleaning and other fees. The marketplace facilitator (Airbnb/Vrbo) collects and remits when booked through a platform; the owner or property management company collects on direct bookings.7%varies
Local option sales tax (Hamilton County/Chattanooga)Hamilton County local option rate of 2.25% (in effect since July 1, 2004, per TN DOR boundary/rate file; same 2.25% rate applies inside Chattanooga city limits). Collected with the state sales tax by the platform for marketplace bookings, otherwise by the host/manager.2.25%varies
Hamilton County hotel/motel occupancy privilege tax4% of consideration for stays under 90 days, levied under Private Acts of 1980, Ch. 905. Since January 1, 2021, short-term rental unit marketplaces must collect and remit local occupancy taxes (via TN DOR) for platform bookings; direct-booking hosts remit monthly to the Hamilton County Trustee by the 20th of the following month.4%varies
City of Chattanooga hotel/motel occupancy tax4% of consideration for stays under 30 days, levied under T.C.A. 67-4-1401 et seq. and City Ordinance No. 11303. Marketplace bookings: platform collects and remits (state mandate since Jan 1, 2021); direct bookings: operator remits monthly to the Hamilton County Trustee (2% accounting fee deduction allowed if timely).4%varies

Enforcement & penalties

Administered by the Development Review and Permitting Division; the Director of the Land Development Office is the zoning enforcement official. The certificate number must be displayed on all advertising/platform listings, and the certificate posted inside the unit. Owners must designate an STVR agent available 24/7 who can appear on-site within two hours of city notification. Absentee applications require Fire Marshal and building inspections before issuance. Renewal is denied after three or more documented violations in the certificate period (discretionary denial possible after one or two), and certificates can be revoked after three documented violations following an Administrative Hearing Officer proceeding; revocation bars reapplication for that property for one year. Denials are appealable to the Board of Zoning Appeals and then Chancery Court within 60 days.

Chapter 38 makes each day a violation continues a separate offense subject to an additional daily fine (Secs. 38-113, 38-114; specific amounts are not stated in the code). Local reporting when the reform ordinance passed in May 2023 stated violators can be charged up to $500 per day before the city's administrative hearing officer. Delinquent occupancy taxes accrue 12% per annum interest plus penalties of 1%/month (city) or 2%/month (county).

⚠️ HOA/condo rules may prohibit STRs regardless of city law.

Getting legal in Chattanooga: the playbook

Generated from this market's verified rules — each step traces to the sources at the bottom of this page.

  1. 1

    Verify your zoning

    Location rules apply: Two-track zoning system under Chapter 38 (Zoning), Article XVII. Homestay (owner-occupied, primary residence >=183 days/year) STVRs may locate in any residential zone within the Short-Term Vacation Rental Overlay District (map held by the City Council Clerk; expanded in Council District 1 effective June 11, 2024) and in any mixed-use, commercial, or Form-Based Code zone that allows single-unit detached or accessory dwellings permitting two-unit or multi-unit living. Absentee (non-owner-occupied) STVRs are allowed citywide only in mixed-use and commercial zones that allow a hotel; if zoning conditions on a parcel exclude hotel/motel use, absentee STVRs are barred there too. Absentee STVRs are also allowed on parcels of 20+ acres in common ownership that allow residential uses. STVRs are capped at 25% of total units in a multi-unit dwelling or development, limited to five bedrooms per unit, prohibited in Affordable Housing PILOT Program properties, and a lot may use its primary dwelling or an accessory dwelling unit for STVR but not both. Confirm your parcel's zoning with the city before applying.

  2. 2

    Check the covenant layer

    HOA/condo rules may prohibit STRs regardless of city law.

  3. 3

    Apply for the Short-Term Vacation Rental Certificate

    Budget $250 (annual renewal). Homestay (owner-occupied) STVRs: $250.00 initial application fee and $250.00 annual renewal fee. Absentee (non-owner-occupied) STVRs: $500.00 initial application fee and $500.00 annual renewal fee. Fees are non-refundable, are in addition to any applicable transaction-related fees, and must be paid in full before the application is reviewed. The $250 homestay fee is used as the standard figure here. Apply through the city — the official application page is linked in the sources below.

  4. 4

    Line up required insurance

    Proof of insurance must be uploaded with the STVR certificate application through the city's application portal (alongside the deed and emergency escape plans). The zoning ordinance itself does not specify coverage types or minimum amounts.

  5. 5

    Set up tax collection & remittance

    Platforms don't collect everything here: Tennessee state sales tax (7%), Local option sales tax (Hamilton County/Chattanooga) (2.25%), Hamilton County hotel/motel occupancy privilege tax (4%), City of Chattanooga hotel/motel occupancy tax (4%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  6. 6

    Configure your listing to the operating limits

    Set your calendar and listing rules to respect the 1-night minimum stay — platform delisting and fines in this market typically start with listings that visibly violate these limits.

  7. 7

    Calendar the renewal before you forget it

    This permit renews annual (budget $250 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.

  8. 8

    Know the cost of getting it wrong

    Chapter 38 makes each day a violation continues a separate offense subject to an additional daily fine (Secs. 38-113, 38-114; specific amounts are not stated in the code). Local reporting when the reform ordinance passed in May 2023 stated violators can be charged up to $500 per day before the city's administrative hearing officer. Delinquent occupancy taxes accrue 12% per annum interest plus penalties of 1%/month (city) or 2%/month (county). Administered by the Development Review and Permitting Division; the Director of the Land Development Office is the zoning enforcement official. The certificate number must be displayed on all advertising/platform listings, and the certificate posted inside the unit. Owners must designate an STVR agent available 24/7 who can appear on-site within two hours of city notification. Absentee applications require Fire Marshal and building inspections before issuance. Renewal is denied after three or more documented violations in the certificate period (discretionary denial possible after one or two), and certificates can be revoked after three documented violations following an Administrative Hearing Officer proceeding; revocation bars reapplication for that property for one year. Denials are appealable to the Board of Zoning Appeals and then Chancery Court within 60 days.

Recent rule changes in Chattanooga

  1. May 20, 2025material

    Definitions amended; 25% cap in multi-unit buildings (Ord. No. 14238)

    Sec. 38-85 definitions were amended, including the limit that STVRs may not exceed twenty-five percent (25%) of the total units in Multi-Unit Dwellings or Multi-Unit Developments.

    Official source →

  2. July 23, 2024material

    STVR rules re-adopted as Zoning Chapter 38, Article XVII (Ord. Nos. 14137 and 14138)

    As part of Chattanooga's comprehensive new zoning code, the STVR regulations were enacted as Chapter 38, Article XVII (Secs. 38-83 to 38-95), carrying forward the homestay/absentee framework, $250/$500 fees, annual renewal, and overlay district. The former certificate article in Chapter 11, Article XX is now marked 'Reserved' in the code.

    Official source →

  3. June 11, 2024material

    STVR Overlay District expanded in Council District 1 (Ord. No. 14117)

    The Short-Term Vacation Rental Overlay District Map was amended to add areas in City Council District 1 (roughly bounded by Manufacturers Road/US-27, Pineville Road, Stringers Branch, and the Red Bank city limits), effective June 11, 2024, expanding where homestay STVRs may operate in residential zones.

    Official source →

Frequently asked questions

›Is Airbnb legal in Chattanooga?

Airbnb is legal in Chattanooga, TN, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.

›Do I need a permit for a short-term rental in Chattanooga?

Yes. Chattanooga requires a Short-Term Vacation Rental Certificate to operate a short-term rental, which costs $250 and must be renewed every year. Always confirm current requirements with the city before operating.

›How much does a Chattanooga short-term rental permit cost?

The Short-Term Vacation Rental Certificate costs $250 (annual renewal). Homestay (owner-occupied) STVRs: $250.00 initial application fee and $250.00 annual renewal fee. Absentee (non-owner-occupied) STVRs: $500.00 initial application fee and $500.00 annual renewal fee. Fees are non-refundable, are in addition to any applicable transaction-related fees, and must be paid in full before the application is reviewed. The $250 homestay fee is used as the standard figure here.

›Can I Airbnb a non-primary residence in Chattanooga?

Yes — Chattanooga does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.

›What taxes do short-term rental hosts pay in Chattanooga?

Hosts in Chattanooga are subject to: Tennessee state sales tax (7%), Local option sales tax (Hamilton County/Chattanooga) (2.25%), Hamilton County hotel/motel occupancy privilege tax (4%), City of Chattanooga hotel/motel occupancy tax (4%) — roughly 17.25% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

›Is there a minimum stay for short-term rentals in Chattanooga?

Yes — Chattanooga requires a minimum stay of 1 night for short-term rentals. Always confirm current requirements with the city before operating.

›Do I need insurance to run a short-term rental in Chattanooga?

Proof of insurance must be uploaded with the STVR certificate application through the city's application portal (alongside the deed and emergency escape plans). The zoning ordinance itself does not specify coverage types or minimum amounts. Always confirm current requirements with the city before operating.

›Does Airbnb collect taxes automatically in Chattanooga?

No — in Chattanooga hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.

›What happens if I operate a short-term rental illegally in Chattanooga?

Chapter 38 makes each day a violation continues a separate offense subject to an additional daily fine (Secs. 38-113, 38-114; specific amounts are not stated in the code). Local reporting when the reform ordinance passed in May 2023 stated violators can be charged up to $500 per day before the city's administrative hearing officer. Delinquent occupancy taxes accrue 12% per annum interest plus penalties of 1%/month (city) or 2%/month (county). Administered by the Development Review and Permitting Division; the Director of the Land Development Office is the zoning enforcement official. The certificate number must be displayed on all advertising/platform listings, and the certificate posted inside the unit. Owners must designate an STVR agent available 24/7 who can appear on-site within two hours of city notification. Absentee applications require Fire Marshal and building inspections before issuance. Renewal is denied after three or more documented violations in the certificate period (discretionary denial possible after one or two), and certificates can be revoked after three documented violations following an Administrative Hearing Officer proceeding; revocation bars reapplication for that property for one year. Denials are appealable to the Board of Zoning Appeals and then Chancery Court within 60 days.

›When did Chattanooga's current short-term rental rules take effect?

The current ordinance took effect on July 23, 2024. See the change timeline on this page for amendments since, and the sources section for the official text.

Chattanooga's STR rules changed 1 time recently.

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This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Chattanooga and a qualified professional before operating.

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