City Watch
Short-term rental rules in Chattanooga, TN
How Chattanooga regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Absentee non-owner-occupied STR excluded from all residential zones
- Owner-occupied homestay only inside STVR overlay district
- R1 homestay capped at 5 sleeping rooms; no absentee
- 18-month waiting period after rezoning for absentee certificate
- TN §13-7-604 grandfathers pre-existing zoning
Based on: Chattanooga City Code Ch.38 Zoning Art.V Div.27 (STR Regulations) §§38-431–38-441, Ordinance No. 13981 (2023-05-16)
Summary of the rule
Non-owner-occupied (Absentee) STRs prohibited in residential zones; permitted only in commercial zones C-2/C-3/C-4/C-5/UGC/CC/IX/RF/RV/CX/SH or parcels >=20 acres under common ownership
Active litigation / open question
Greater Chattanooga Coalition of Property Owners/Property Rights filed a Hamilton County Chancery Court complaint challenging the city's STR zoning/permitting framework; descriptive only. Source ↗
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 8, 2026 · Sources · Report an error
Pending legislation
Monitoring Chattanooga · system last checked Oct 24, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.