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Short-Term Rental Regulations
in Chattanooga, TN

Last verified: March 2026 · Report an update

Zoning & Conditions

Homestay rentals are allowed in residential zones within the STVR Overlay District and specified commercial zones. Absentee (non-owner occupied) rentals are restricted to mixed-use and commercial zones that allow hotels. All units must meet life safety standards (smoke/CO detectors), post the STVR certificate and owner contact info, and remit all applicable taxes.

How to Obtain a Permit

1. Apply online via the Open Gov Portal and upload required documents (State ID, proof of ownership, insurance, City Business License, site/floor plan, and emergency escape plan). 2. Pay the non-refundable application fee ($250 for homestay, $500 for absentee). 3. Certificates must be renewed annually and posted within the rental unit.

Regulatory Updates — Chattanooga

Proposed and recent legislation

PassedOctober 2024

STVR Overlay District Boundaries Reviewed

Chattanooga reviewed and updated the boundaries of its STVR Overlay District, clarifying which residential neighborhoods are within the district and eligible for Homestay permits and which fall outside.

PassedJune 2024

Absentee STR Zone Compliance Enforcement

The City enforced its restriction on Absentee (non-owner-occupied) STRs in residential zones, citing operators running full-home rentals in areas only approved for Homestay arrangements.

PassedFebruary 2024

Annual STVR Permit Renewal Process Updated

Chattanooga streamlined its STVR permit renewal process with an online portal, requiring operators to confirm their permit category (Homestay vs. Absentee) and zone eligibility remain current.

Official Resources

Official Chattanooga STR regulation source

Local Resources & Advocacy

Vacation Rental Management Association (VRMA)National

National trade association providing advocacy and compliance resources for vacation rental professionals in Chattanooga and Tennessee markets.

Tennessee RealtorsStatewide

Statewide real estate association monitoring Chattanooga's STVR overlay district framework and advocating for reasonable zoning standards for Tennessee property owners.

Chattanooga TourismLocal

Local destination marketing organization tracking STR accommodation supply and its contribution to Chattanooga's growing outdoor recreation and cultural tourism market.

Frequently Asked Questions

Are short-term rentals allowed in Chattanooga, TN?
Homestay rentals are allowed in residential zones within the STVR Overlay District and specified commercial zones. Absentee (non-owner occupied) rentals are restricted to mixed-use and commercial zones that allow hotels. All units must meet life safety standards (smoke/CO detectors), post the STVR certificate and owner contact info, and remit all applicable taxes.
Is a permit required to operate a short-term rental in Chattanooga?
Yes, a permit is required to operate a short-term rental in Chattanooga. 1. Apply online via the Open Gov Portal and upload required documents (State ID, proof of ownership, insurance, City Business License, site/floor plan, and emergency escape plan). 2. Pay the non-refundable application fee ($250 for homestay, $500 for absentee). 3. Certificates must be renewed annually and posted within the rental unit.
How do I get a short-term rental permit in Chattanooga?
1. Apply online via the Open Gov Portal and upload required documents (State ID, proof of ownership, insurance, City Business License, site/floor plan, and emergency escape plan). 2. Pay the non-refundable application fee ($250 for homestay, $500 for absentee). 3. Certificates must be renewed annually and posted within the rental unit.
What is the STVR Overlay District in Chattanooga?
The STVR Overlay District is a geographic designation that identifies which residential neighborhoods are eligible for Homestay (owner-occupied) STR permits. If your property is outside the overlay district, you cannot operate a residential Homestay STR — check the city's overlay map before applying.
Can I rent my entire Chattanooga home when I'm away?
Not in residential zones. Absentee (non-owner-occupied) STRs are restricted to mixed-use and commercial zones. Renting your full home without being present in a residential zone — even if it's in the STVR Overlay District — requires a non-residential zone designation.
Is Chattanooga a good market for STR investors?
It's viable but limited. Absentee investment rentals are confined to mixed-use and commercial zones, which represent a small fraction of the city's housing stock. Chattanooga's growing tourism economy makes STRs profitable where they're permitted, but zone restrictions constrain the investment market.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction