Short-Term Rental Rules in Chattanooga, TN (2026): Permits, Taxes and Limits
Short-term renting is permitted in Chattanooga, TN. Hosts need a Short-term Vacation Rental (STVR) certificate to operate legally [1][2].
Do you need a permit or license?
Yes, you must obtain a Short-term Vacation Rental certificate from the City of Chattanooga. This certificate must be posted conspicuously within the rental unit [1][2]. The certificate is valid for one year and must be renewed annually [2]. If the certificate expires and is not renewed within 30 days, you must apply anew [2]. You must also designate an STVR agent on your application [2].
Taxes
Hosts are responsible for collecting and remitting all applicable room, occupancy, and sales taxes required by state law and the City of Chattanooga [1][4]. Annual taxes must be filed via the Tennessee Taxpayer Access Point [3]. Occupancy taxes are due to the Hamilton County Trustee by the 20th of each month [4]. The tax rate is 4% [4].
Limits and restrictions
Only properties in approved zones may be used for short-term rentals [1][2]. A homestay must be the host's primary residence for at least 183 days a year [2]. Non-owner occupied properties are allowed only in certain commercial zones [2]. A short-term rental unit must comply with local zoning, building, health, and safety codes [1]. The unit may not have more than five bedrooms available for rent, and other safety equipment, such as smoke detectors, must be functional [1]. No compensation may be received for stays less than 24 hours [1]. Occupancy is limited based on room size and must be posted within the unit [1].
Penalties
Failure to comply with tax obligations can result in penalties, including daily fines for late payments [4]. A denied application can be appealed within 60 days via the Board of Zoning Appeals, but no exceptions to zoning or capacity rules will be granted [2].
How to apply
Applications are submitted via the OpenGov portal, requiring property compliance with zoning rules and the provision of necessary documents such as deeds and insurance proof [2]. An application fee is required: $250 for homestays and $500 for absentee properties [2]. Applications must be finalized within 60 days, or they will be rejected [2].
At a glance
| Topic | What the rules say |
|---|---|
| Certificate Requirement | STVR certificate is mandatory [1][2]. |
| Renewal | Annually, 30-day grace period [2]. |
| Taxes | Host collects/remits occupancy and sales taxes [1][4]. |
| Zones | Must be in approved zones per zoning laws [1][2]. |
| Penalties | Late tax payments incur fines, $50/day [4]. |
FAQ
Where should the STVR certificate be posted?
The certificate must be posted conspicuously within the rental unit [1][2].
How is the maximum occupancy of a rental unit determined?
The maximum occupancy is based on room size, with specific calculations provided for rooms over and under 210 square feet [1].
Are multi-family units allowed as short-term rentals?
No more than 25% of units in a multi-family dwelling can be used as short-term rentals [1].
Running a rental in Chattanooga
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- First Reading: May 9, 2023 (official)
- Apply for Short-Term Vacation Rental Certificate | Chattanooga.gov (official)
- Annual Business Processes, Hamilton County Government Resources (official)
- HAMILTON COUNTY (official)
Last checked: October 15, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.