Hamilton County, TN

Where short-term rentals are allowed in Chattanooga, TN

Chattanooga sorts short-term rentals by whether you live there, and prices them accordingly. A homestay, meaning the property is your primary residence and you spend at least 183 days a year in it, costs $250 to apply for and $250 to renew, and is allowed in commercial zones that permit absentee designations and inside the designated homestay overlay. An absentee rental, where the property is not your home, costs $500 either way and is allowed only in commercial zones that permit a hotel or motel use. Both need a certificate posted in the rental, and the zoning check comes before anything else.[3]

Every rule below links to the official source it comes from, verified September 20, 2026.

Can you rent short term in Chattanooga?

Your zoning decides

What you apply for: Short-Term Vacation Rental certificate

Seasonal homes
805
Housing units
87,970
Residents
185,783

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City ruleAllowed by zone
  • City fee$250
  • Tax on each staySet locally
  • Seasonal homes9 per 1,000

Chattanooga short-term rental rules

Chattanooga requires a short-term vacation rental certificate for every host or property owner, and sorts applicants by whether they live in the property. A homestay is a primary residence you occupy at least 183 days a year; it costs $250 to apply for and $250 to renew, and is allowed in commercial zones that permit absentee designations and within the designated STVR homestay overlay. An absentee rental, where the property is not your home, costs $500 either way and is allowed only in commercial zones that permit a hotel or motel use. Check the zoning before anything else, because the Board of Zoning Appeals cannot grant a certificate in a zone where the use is not allowed, nor waive the 25% density cap. Applications have a strict sixty-day lifespan, the certificate must be posted inside the rental, and after a rezoning you cannot apply for an absentee certificate for eighteen months.[3]

What Chattanooga asks of you

  • Every host or property owner must hold a valid short-term vacation rental certificate to operate legally in the city.[3]

  • A homestay is a primary residence you live in at least 183 days a year, allowed in commercial zones that permit absentee designations and within the designated homestay overlay. An absentee rental is allowed only in commercial zones that permit a hotel or motel use.[3]

  • Homestay fees are $250 to apply and $250 to renew. Absentee fees are $500 and $500.[3]

  • An application has a strict sixty-day lifespan: submit every document, pay the fees and answer staff within that window, or the application is rejected and you start again.[3]

  • The certificate must be posted in a permanent, intentional manner in a conspicuous place inside the rental, and it has to be the current active one.[3]

  • After a rezoning, the owner cannot apply for an absentee certificate for eighteen months from the effective date of the rezoning ordinance.[3]

  • A certificate can be transferred to a new owner of the same property, but never to a different address.[3]

Apply on the Chattanooga site

What Tennessee asks wherever you host

These rules apply at this address whatever the city decides.

  • A short-term rental unit in Tennessee is a residential dwelling rented wholly or partially for a fee for less than thirty continuous days. Hotels and bed and breakfast establishments are outside the definition.[1]

  • If the property was already being used as a short-term rental when an ordinance was enacted, that ordinance does not apply to it. The rules in force when you started govern instead, until the property is sold, transferred, sits unused as a rental for thirty continuous months, or breaks a generally applicable local law three separate times.[1]

  • A city that runs a permitting or application process may suspend the use of a property for any period in which it does not hold a permit, provided its requirements are reasonable.[1]

All Tennessee short-term rental laws

What a guest pays on top of your nightly rate in Chattanooga

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Chattanooga
LayerRateRemitted to
City room occupancy tax[2]Not publishedThe city

A Tennessee city levies its room occupancy tax by ordinance, and the rate may not exceed four percent where it rests on T.C.A. § 67-4-1402. Where the tax was levied after July 1, 2021, the revenue must fund tourism promotion.[2]

How short-term rental taxes work for US hosts

What the census counts

How much of Chattanooga is already a second home

The Census Bureau counts 805 of Chattanooga's 87,970 homes as vacant for seasonal, recreational or occasional use — 9 out of every 1,000. That ranks Chattanooga 3rd of the 6 Tennessee cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
3rd of 6
Share of housing
9 per 1,000
Median home value
$283,200

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Chattanooga sits among its neighbors

Sevierville, TN

Registration required

310 seasonal homes, 32 per 1,000 housing units.

Rules in Sevierville

Knoxville, TN

Registration required

851 seasonal homes, 9 per 1,000 housing units.

Rules in Knoxville

Gatlinburg, TN

Registration required

1,641 seasonal homes, 340 per 1,000 housing units.

Rules in Gatlinburg

Johnson City, TN

No city ordinance

271 seasonal homes, 8 per 1,000 housing units.

Rules in Johnson City
The state hubEvery Tennessee city on this site, in one tableState law, the tax stack and every city we cover in Tennessee, with what each one asks of a host.Open the Tennessee hub

FAQ

Chattanooga short-term rental questions

What does a Chattanooga short-term rental certificate cost?

$250 to apply and $250 to renew for a homestay; $500 and $500 for an absentee rental. Additional fees may apply on top.[3]

Can I run an absentee rental in a Chattanooga residential zone?

No. An absentee short-term vacation rental is allowed only in commercial zones that permit a hotel or motel use.[3]

How long does the application stay open?

Sixty days from submission. If you have not supplied the documents, paid the fees and answered city staff within that window, the application is rejected and the process restarts.[3]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
  2. Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
  3. Apply for Short-Term Vacation Rental Certificate, City of Chattanooga, read on September 20, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on September 20, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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