Detroit vs Nashville

Michigan Legal but Limited | Tennessee Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

Detroit, Michigan
Status Legal but Limited
Permit Fee $500 annual license fee
Tax Rate 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined)
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Up to $1,000–$1,200 per violation for unlicensed operation
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated violations

Both cities have comparable STR regulatory environments.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Nashville charges $313 permit fee. Detroit renewal is annual, and Nashville renewal is annual. Both cities share a similar regulatory stance, classified as "Legal but Limited."

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Detroit imposes a 90-night annual limit, while Nashville has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Detroit face penalties including Up to $1,000–$1,200 per violation for unlicensed operation. In Nashville, violations can result in $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Detroit Overview

90-day annual rental cap; max 10 guests at any time; principal residence requirement. Liability insurance required and properties must pass safety inspection.

Contact: BSEED — (313) 224-2733

Full Detroit guide →

Nashville Overview

Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.

Contact: Nashville Codes Department — (615) 862-6590

Full Nashville guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Nashville?
Detroit is classified as "Legal but Limited" while Nashville is "Legal but Limited." Detroit's permit fee is $500 annual license fee compared to $313 permit fee in Nashville. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Detroit or Nashville?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax.
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Nashville have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Nashville has no annual day limit.
Which city is better for first-time Airbnb hosts — Detroit or Nashville?
For new hosts, consider the total cost of entry: Detroit charges $500 annual license fee for permits with 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined) in taxes. Nashville charges $313 permit fee with 6% Short-Term Rental Property Tax + state/local sales tax. Automatic tax collection in Detroit and Nashville makes compliance easier for beginners.