Curious whether you can run a short-term rental on a property in East Nashville? You are not alone. Between zoning, overlays, and changing rules, “NOO-eligible” can feel like a moving target. In this guide, you’ll learn what NOO and owner-occupied mean, how overlays affect eligibility, the steps to verify a specific address, and the risks to plan for. Let’s dive in.
NOO vs owner-occupied, in plain terms
A non-owner-occupied (NOO) STR is a property you do not live in that is used for short stays. Think investment property that operates like lodging. These permits are usually the most limited.
An owner-occupied STR is your primary residence where you live on site and rent all or part of the home temporarily. Cities often treat these differently because you have established residency.
Permit names and definitions can change. Always confirm the current categories on Metro Nashville’s official pages before you apply.
Why eligibility varies in East Nashville
Eligibility depends on more than the house itself. It hinges on base zoning, neighborhood rules, and whether the address sits inside an overlay. Overlays are map layers that add extra rules on top of base zoning.
In East Nashville, you will see several overlay types. Historic or neighborhood conservation overlays may limit use intensity or trigger extra approvals. Special plan (SP) overlays can set custom use tables. Floodplain overlays affect building and safety requirements. The bottom line is that overlays can prohibit or condition NOO STRs even when base zoning appears friendly.
How to check a property’s status
You want a parcel-level answer, not a neighborhood rumor. Here is a simple process you can follow:
- Look up the property on Metro’s zoning and parcel map to confirm base zoning and all overlays.
- Ask Metro Planning or the STR program to confirm whether NOO or owner-occupied STRs are allowed in that zone and overlay today.
- Review HOA or condo bylaws and any recorded restrictive covenants for STR limits.
- If the property is in a historic or conservation overlay, ask what approvals are required to operate or make exterior changes.
- If the parcel is within an SP overlay, request the specific plan documents and use table for STR clarity.
Because rules evolve, get written confirmation from Metro staff before you go under contract or before you launch operations.
Permit steps you should expect
Most STR programs require similar application pieces. Plan for the following:
- Application form, owner contact info, and proof of ownership or authorization.
- Proof of primary residence if you seek an owner-occupied track.
- Floor plan and guest occupancy count by bedroom.
- Safety features checklist and, for many NOO whole-home rentals, added fire or building inspection requirements.
- Local business registration and acknowledgement of local rules around noise, trash, and parking.
- Payment of permit fees and renewal fees.
After issuance, expect ongoing tasks: register for state and local taxes, post your permit number on listings if required, keep renewals current, maintain safety equipment, and respond quickly to any complaints.
Key differences for NOO vs owner-occupied
While both categories must follow the rules, the NOO path usually includes tighter limits and more scrutiny:
- Documentation burden is often higher for NOO permits, with possible added inspection steps.
- Geographic limits are common. Some zones or overlays allow owner-occupied STRs but prohibit NOO.
- Operations may be limited to certain commercial or mixed-use districts rather than residential streets.
- Renewal standards and enforcement triggers can be stricter for NOO permits.
If you plan a pure investment model, verify there are no caps or overlay restrictions that would block a NOO permit at the specific address.
Taxes, financing, and insurance essentials
All STR operators must handle taxes. You are generally required to register with the Tennessee Department of Revenue for state sales tax and comply with local hotel or occupancy tax. You are responsible for collecting and remitting on time.
Financing and insurance can change the math. Many lenders limit STR use or require owner occupancy, and insurers price or underwrite NOO differently than owner-occupied. Confirm your loan and insurance terms in writing before closing.
Compliance goes beyond permits. Mortgage covenants, HOA rules, and insurer conditions can supersede your business plan, so vet them early.
Risk and enforcement in the real world
Most enforcement is complaint-driven. Common triggers are noise, parking issues, trash, missing safety devices, tax non-remittance, operating without a valid permit, or exceeding occupancy limits. Consequences can include fines, suspension, or revocation.
Protect your operation with simple practices. Set clear occupancy limits, provide parking instructions, use noise-monitoring solutions, and establish a rapid response plan with a local contact. Keep a renewal calendar and retain documentation for permits and tax filings.
Property research checklist
Use this two-phase checklist for East Nashville addresses.
Pre-offer
- Parcel zoning and overlays: verify base zone and all overlays on Metro’s map.
- Neighborhood rules: review HOA and condo documents, plus any recorded covenants.
- Mortgage limits: ask about any loan restrictions on STR use.
- Market context: assess parking, site access, and nearby activity that could drive complaints.
Post-offer to pre-opening
- Written eligibility confirmation from Metro Planning or the STR program.
- Permit application: ownership documents, floor plan, safety proof, and fees.
- Building or fire inspection: schedule if required by Metro Codes.
- Business and tax registrations: set up sales and occupancy tax accounts and systems for collection and remittance.
- Insurance and lender consent: secure STR-appropriate coverage and any required approvals.
- Listing compliance: display the permit number if required and publish house rules.
- Neighbor outreach: optional but smart to reduce complaints and build goodwill.
Document the essentials for your file: deed and tax ID, contact info, proof of registration for taxes, safety device proof, floor plan, and parking capacity.
When to bring in the pros
Because permit categories, overlays, and council actions evolve, always confirm current rules with Metro Planning, the STR program, and Metro Codes. For taxes, register and verify obligations with the Tennessee Department of Revenue. For financing and risk, coordinate with your lender, insurer, and any HOA board before you commit.
If you want a local partner to pressure-test a specific address or to package NOO-eligible opportunities, our team can help you navigate parcel-level zoning, overlay nuances, and market realities in East Nashville.
Ready to align your STR strategy with the right address and a solid plan? Connect with The City Living Group for a focused consult and on-the-ground guidance.
FAQs
What does NOO/STR eligibility mean in Nashville?
- It describes whether a specific property can legally operate as a short-term rental and whether it qualifies as non-owner-occupied or owner-occupied under current Metro rules.
How do overlays affect East Nashville STR permits?
- Overlays are extra zoning layers that can prohibit or condition NOO STRs, add design review, or require additional approvals beyond base zoning.
Can I run a NOO STR in a residential street in East Nashville?
- It depends on the property’s base zoning, overlays like historic or SP, HOA rules, and current Metro ordinances; always verify at the parcel level.
What permits and taxes do I need for an STR?
- You typically need a Metro STR permit, local business registration, and state and local tax registration for sales and occupancy taxes, with ongoing remittance.
What causes STR permit suspension or revocation?
- Repeated noise, trash, or parking violations, missing safety measures, tax non-remittance, operating without a valid permit, or exceeding occupancy can trigger enforcement.
What should I verify with my lender and insurer?
- Confirm whether your loan allows STR use, whether owner occupancy is required, and that your insurance policy covers NOO or owner-occupied STR operations.