Chattanooga City Zoning Code

(a)

New non-owner occupied/absentee properties are only allowed throughout the City in the mixed-use and commercial zones that allow a hotel. .....

(b)

They are also allowed within any parcel of at least 20 acres or more with common ownership that allows for residential uses. .....

(c)

These standards are intended to provide appropriate opportunities for the development of short-term vacation rentals in the City. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

Unless otherwise identified, owner-occupied, or homestay, are allowed in all zones that residential uses are allowed within the Short-Term Vacation Rental Overlay District Map and in the specified commercial zones listed above in Section 17.1.A.

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

The following terms used in this Article are defined as follows:

Code Compliance Verification Form. A document executed by a short-term vacation owner certifying that the short-term vacation rental unit complies with applicable zoning, building, health, and life safety code provisions. No person may allow occupancy or possession of any short-term vacation rental unit if the premises are in violation of any applicable laws including, but not limited to, zoning, building, health, or life safety code provisions.

Short-Term Vacation Rental Certificate. A certificate issued annually by the City of Chattanooga allowing a person or entity to operate a short-term vacation rental.

Short-Term Vacation Rental. Any or other structure containing no more than five bedrooms within permissible zones which is used, advertised, or held out to the public in part or its entirety to be a place where sleeping accommodations are supplied for pay and such accommodations are provided on a daily or weekly basis for not more than 30 days for overnight stay. For the purposes of this definition, any short-term vacation rental on a site located in the RN-1-7.5, RN-1-6, RN-1-5, RN-2 Zones, must contain no more than five bedrooms and excludes hotels, rooming houses, bed and breakfast, and boarding houses, or other licensed multi-unit dwellings for rent or lease, as defined in Section 21-67 and/or and/or . STVRs may not exceed twenty-five (25%) percent of the total units in Multi-Unit Dwellings or Multi-Unit Developments.

Short-term vacation rental district: That certain area of the City of Chattanooga as determined by the Chattanooga City Council as the Short-Term Vacation Rental district and incorporated herein as Exhibit A to this Section as amended from time to time.

Editor's note— A copy of the Short-Term Vacation Rental Overlay District Map, referenced above as Exhibit A as amended from time to time, is available for inspection in the offices of the City Council Clerk. The map was amended to add an additional area within City Council District 1 effective June 11, 2024, and was amended to add an additional area with City Council District 5 effective October 21, 2025.

Short-Term Vacation Rental Occupants. Guests, tourists, lessees, vacationers, or any other person who, in exchange for compensation, occupy a short-term vacation rental dwelling unit for lodging for a period of time not to exceed 30 consecutive days.

Short-Term Vacation Rental Occupancy. There are two designations regarding the occupancy status of a short-term vacation rental:

(a)

Homestay. A short-term vacation rental property which is the primary residence of the applicant. Primary is defined as the residence of the applicant at least 183 days a year. .....

(b)

Absentee. A short-term vacation rental property which is not the primary residence of the applicant. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24; Ord. No. 14117, § 1, 6-11-24; Ord. No. 14238, § 1, 5-20-25; Ord. No. 14292, § 1, 10-21-25)

(a)

A homestay short-term vacation rental may be located in any residential zone within the overlay district set forth in this section and any mixed-use and commercial zone or Form-Based Code Zones that allows any single-unit detached or accessory dwelling units that permits two-unit or multi-unit living. .....

(b)

A short-term vacation rental is not permitted to operate in any capacity on property or within structures that are part of an Affordable Housing PILOT Program. .....

(c)

A short-term vacation rental may include a primary dwelling unit or an accessory dwelling unit but not both structures on one lot. .....

(d)

An absentee short-term vacation rental is only allowed throughout the City in the mixed-use and commercial zones that allow a hotel. If a zoning condition limits the allowable permitted uses of a mixed-use and commercial zone, then an absentee short-term vacation rental is only allowed if a hotel or motel is an allowable use under the zoning conditions. Building Code must be met as required through the permitting process. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

No person or entity may operate a short-term vacation rental unless a short-term vacation rental certificate has been first obtained from the City of Chattanooga Development Review and Permitting Division. To obtain a short-term vacation rental certificate, an eligible applicant must submit an application and a Code compliance verification form in compliance with Section 17.6. If approved, a legible copy of the short-term vacation rental certificate must be posted within the unit. The City of Chattanooga Development Review and Permitting Division will establish the information to be included upon the short-term vacation rental certificate. .....

(b)

Short-term vacation rentals must be properly maintained and regularly inspected by the owner to ensure continued compliance with applicable zoning, building, health, and life safety local and state laws. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

A short-term vacation rental cannot include uninhabitable structures such as garages, barns, or sheds. .....

(b)

Any dwelling unit for short-term vacation rentals must have functioning smoke detectors as determined by the Fire Marshal and other life safety equipment as required by local, state, and federal law. .....

(c)

The dwelling unit must meet all applicable laws related to zoning, building, health, or life safety. .....

(d)

No on-site signage is permitted except for those vacation rentals that are at least five acres and have a dwelling unit that is not visible from the public right-of-way, can have directional signs placed on the parcel that are at least 50 feet from the public right-of-way. No off-site signage except for any designated city required signage and signage for designated parking spaces to be used by occupants of the short-term vacation rental. Such signs cannot be larger than three square feet. .....

(e)

There must be no more than five bedrooms made available for rental in one dwelling unit. There must be no more than five sleeping rooms made available for a site located in the RN-1-6, RN-1-5, or RN-2 Zones. .....

(f)

The maximum occupancy is determined by the total of: .....

(1)

Two persons per bedroom up to 210 square feet plus an additional two persons. .....

(2)

For bedrooms over 210 square feet the occupant load will be determined by the area of the room divided by 70 square feet plus an additional two persons. .....

(3)

The occupancy maximum must be conspicuously posted within the short-term vacation rental unit. .....

(g)

The short-term vacation rental owner cannot receive any compensation or remuneration to permit occupancy of a short-term vacation rental property for a period of less than 24 hours. .....

(h)

The short-term vacation rental certificate holder is responsible for collecting and remitting all applicable room, occupancy, and sales taxes required by state law and the City Code of the City of Chattanooga. .....

(i)

Adequate on-site parking must be provided, as determined by the City after considering proposed number of guests, frequency of operations, and availability of on-street parking. As a general rule, parking is not allowed on any vegetated area of the premises on which the short-term vacation rental is located. .....

(j)

All occupants must abide by all applicable noise restrictions and all applicable waste management provisions of the City Code of the City of Chattanooga. All occupants must comply with City Code . .....

(k)

The name and telephone number of the owner of the short-term vacation rental or the short-term vacation rental agent must be conspicuously posted within the short-term vacation rental. .....

(l)

The premises on which the short-term vacation rental has not been found to be in violation of any City Code provision by City Court within the six months prior to submitting an application for a short-term vacation rental certificate. .....

(m)

Ownership information and contact information for the short-term vacation rental agent must be posted on a public website or as determined appropriate by the City of Chattanooga. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

Certificate Application .....

Any person or entity wishing to operate a short-term vacation rental within the limits of the City is required to submit, under oath, a short-term vacation rental certificate application to the Development Review and Permitting Division for review. The City of Chattanooga Development Review and Permitting Division will establish the information present on the short-term vacation rental certificate application and the Code compliance verification form as well as what information is required for the completion of said application.

(b)

Application Fee .....

(1)

The non-refundable application fee for all short-term vacation rentals are as follows in addition to any applicable transaction related fees: .....

(i)

Absentee STVRs .....

a.

Initial application fee: $500.00 .....

b.

Renewal fee: $500.00 .....

(ii)

b. Homestay STVRs .....

a.

Initial application fee: $250.00 .....

b.

Renewal fee: $250.00 .....

(2)

This application fee must be paid in full before any application is reviewed by the Development Review and Permitting Division. .....

(c)

Application Review .....

(1)

The City of Chattanooga Development Review and Permitting Division will review all applications for Homestay and Absentee short-term vacation rentals and provide comment where necessary. If additional materials are found to be required, a designated representative of the City may ask for them at any time. Upon completion of application requirements as set forth in this section, and upon tendering of the requisite application fee, the certificate will be issued. .....

(2)

Homestay dwellings applying for a short-term vacation rental certificate: .....

(i)

For homestay dwellings, the applicant/owner must be a natural person or a business entity (i.e., a Tennessee LLC, corporation, partnership etc.) whose business entity applicant lives on premises and can establish proof of ownership annually. .....

(ii)

Residency of all applicants must be proved annually during renewal with driver's license number, business records, or other documentation acceptable to the Development Review and Permitting Division. .....

(3)

Absentee dwellings applying for a short-term vacation rental certificate: .....

(i)

For absentee dwellings, the Development Review and Permitting Division must notify the Fire Marshal and a City Building Inspector and request that inspections be conducted to ensure that the property and any associated structures on the property are in compliance with state and local laws. .....

(ii)

When the application for an absentee short-term vacation rental meets all of the requirements set forth in this article, and passes all inspections required pursuant to this section, the Development Review and Permitting Division will issue to the applicant, a short-term vacation rental certificate. .....

(iii)

The Development Review and Permitting Division does not send notification letters of applications for short-term vacation rentals nor is the applicant required to post a notification sign. .....

(4)

Homestay and absentee for a short-term vacation rental certificate: .....

(i)

If the Development Review and Permitting Division denies an application for a homestay or an absentee short-term vacation rental certificate, the applicant has the right to appeal the denial from the Development Review and Permitting Division to the Board of Zoning Appeals. The applicant also has the right to appeal a denial from the Board of Zoning Appeals to Chancery Court. Any appeal must be made within 60 days of the date of denial or revocation of any permit. .....

(ii)

The applicant must be present at the appeal hearing before the Board of Zoning Appeals, regardless of whether the appeal is initiated by the Development Review and Permitting Division or the applicant. Any applicant not present at the appeal hearing results in an automatic denial of the short-term vacation rental certificate by the Board of Zoning Appeals. .....

(iii)

If the certificate is still denied after the appeal hearing, the applicant must wait 12 months before reapplying for a short-term vacation rental certificate. .....

(iv)

If a property owner or applicant requests to be rezoned to any mixed-use and commercial zone that allows absentee short-term vacation rentals, and if such request is granted, the owner or applicant may not apply for an absentee short-term vacation rental certificate within 18 months of the effective date of the lifting or amending of condition(s). .....

(d)

Application Lifetime .....

An application is valid for a period of 60 days from the date of application submission. After 60 days, an application that has not received a certificate may be discarded.

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

Certificate Approval .....

The Certificate must be issued for the specific site location and/or address of the proposed short-term vacation rental applicant provided in the application. The Development Review and Permitting Division reserves the right to condition the approval to a certain number of rooms, operating days/hours, signage, or other restrictions as may be deemed necessary to address impacts to bordering properties or to ensure safe operation of the property. Said conditions will be based on the recommendation of the Development Review and Permitting Division.

(b)

Certificate Number .....

Upon issuance of a short-term vacation rental certificate, the Development Review and Permitting Division will also issue a certificate number. The certificate number must be displayed on any materials or platforms used to advertise the short-term vacation rental.

(c)

Grant or Denial of Application .....

Review of an application will be conducted in accordance with due process principles and will be granted unless the applicant fails to meet the conditions and requirements of this section, or otherwise fails to demonstrate the ability to comply with local, state, or federal law. Any false statements or information provided in the application are grounds for denial of an application for a short-term vacation rental, revocation or suspension of an existing short-term vacation rental certificate, and/or imposition of penalties, including denial of future applications. After 60 days, an application that has not received a certificate may be discarded, unless delay has been the result of delay of action by the Development Review and Permitting Division or other City department as determined by the Director of the Development Review and Permitting Division.

(d)

Transferability .....

The certificate is non-transferable to another site, property, or location. Any change of ownership for the short-term vacation rental unit is allowed as long as the transferring owner or operator and the prior owners of the unit have not subject to revocation for at least one year prior to the transfer.

(e)

Revocation .....

(1)

The City reserves the right to revoke a granted short-term vacation rental certificate at any time upon notice to the owner and the short-term vacation rental certificate Agent and after a public hearing once the property has three documented violations of City Code or State Law as a direct result of the operation of the short-term vacation rental unit and no appeal rights of those violations remain. Such violations are evidenced by a finding of guilt or fault by court or an administrative officer or body designated by the City Council. .....

(2)

A short-term vacation rental certificate which is revoked prevents its certificate holder from applying for a new certificate or short-term vacation rental on the same property or part thereof for a period of one year from the date of revocation. Prior to any revocation, the owner or the short-term vacation rental agent will be cited to the Administrative Hearing Officer, or a body designated by the City Council, for a hearing to establish proof of violations. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

A short-term vacation rental certificate must be renewed annually by any applicant to legally operate as a short-term vacation rental within the City of Chattanooga. .....

(b)

A certificate may only be renewed if: .....

(1)

A renewal application is submitted to the Development Review and Permitting Division not less than 30 days prior to the certificate's expiration date; .....

(2)

All information provided in and relating to the original short-term vacation rental application has not changed within the previous certification period; and .....

(3)

The property requesting to be renewed as a short-term vacation rental has not had more than two documented violations of City Code or Tennessee law as a direct result of the operation of the short-term vacation rental within the previous certification period. .....

(c)

If a property requesting to be renewed as a short-term vacation rental has had three or more documented violations of City Code or Tennessee law as a direct result of the operation of the short-term vacation rental during the previous certificate period, the Development Review and Permitting Division will deny the renewal certificate. Certificates denied on this basis may be appealed to the Administrative Hearing Officer. .....

(d)

The Development Review and Permitting Division reserves the right to deny a renewal certificate, within its discretion, even if the property requesting to be renewed as a short-term vacation rental has had only one or two documented violations of City Code or Tennessee law. Certificates denied on this basis may be appealed to the Administrative Hearing Officer. .....

(e)

There is a short-term vacation rental certificate renewal fee to be paid annually to the Development Review and Permitting Division upon renewal, in addition to any applicable transaction related fees and any taxes required by the State of Tennessee related to the operation of a short-term vacation rental. This fee must be remitted to the City Treasurer within 30 days after occupancy occurs within the rental units. .....

(f)

A certification more than 30 days beyond its expiration date cannot be renewed. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

(a)

The owner of a short-term vacation rental must designate a short-term vacation rental agent on its application for a certificate for a short-term vacation rental. A property owner or resident of a unit owned by a corporation may serve as the short-term vacation rental agent. Alternatively, the owner may designate a person as his or her agent who is over age 18 and meets all local and state regulatory requirements to fulfill the duties of a short-term vacation rental agent. .....

(b)

The duties of the short-term vacation rental agent are to: .....

(1)

Be available 24 hours a day, seven days a week to respond to telephone calls from law enforcement, first responders, and/or City designees. .....

(2)

Appear on the premises of any short-term vacation rental unit within two hours following notification from the City of issues related to the use or occupancy of the premises. This includes, but is not limited to, notification that occupants of the short-term vacation rental unit have created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the City Code or other applicable law pertaining to noise, disorderly conduct, overcrowding, consumption of alcohol, or use of illegal drugs. Failure of the agent to timely appear to two or more complaints regarding violations may be grounds for penalties as set forth in this section. This is not intended to impose a duty to act as a peace officer or otherwise require the agent to place themselves in a perilous situation. .....

(3)

Receive and accept service of any notice of violation or notice of hearing related to the short-term vacation rental. .....

(4)

Monitor the short-term vacation rental for compliance with laws. .....

(c)

C. An owner may change their designation of a short-term vacation rental agent temporarily or permanently; however there must only be one such agent for a property at any given time. To change the designated agent, the owner must notify the Development Review and Permitting Division in writing of the new agent's identity, together with all information regarding such person as required by the applicable provisions of this section. .....

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

Should any court of competent jurisdiction declare any section, clause, or provision of this Article to be unconstitutional, such decision affects only such section, clause, or provision so declared unconstitutional, and does not affect any other section, clause, or provision of this Article. Additionally, this in no way be used to supersede any privately created agreements or covenants by any homeowner associations or developers restricting certain uses.

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

The Land Development Office will conduct at a minimum an initial annual review of the provisions of this Article. The Board of Zoning Appeals, or its departmental designee, must conduct an annual review of the appeals before that body and suggest any text amendments that may be appropriate to the City Council.

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)

A copy of the Short-Term Vacation Rental Overlay District Map is available for inspection in the offices of the City Council Clerk.

(Ord. No. 14137, § 1, 7-23-24; Ord. No. 14138, § 1, 7-23-24)