Honolulu vs Nashville

Hawaii Restricted | Tennessee Legal but Limited

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

Honolulu, Hawaii
Status Restricted
Permit Fee $1,000 initial registration; $500 annual renewal
Tax Rate ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $10,000/day for recurring violations; $5,000 initial fine
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

Nashville has more favorable STR regulations overall.

Permits & Licensing

Honolulu charges $1,000 initial registration; $500 annual renewal for STR licensing, while Nashville charges $313 permit fee. Honolulu renewal is annual, and Nashville renewal is annual. Overall, Nashville has a more permissive regulatory environment (Legal but Limited) compared to Honolulu (Restricted).

Tax Obligations

In Honolulu, hosts pay ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. A key difference: platforms like Airbnb automatically collect taxes in Nashville, but hosts in Honolulu must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Honolulu face penalties including $10,000/day for recurring violations; $5,000 initial fine. 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.

Honolulu Overview

STRs limited to resort-zoned and eligible apartment-zoned areas. Hosts must register as B&B (owner-occupied, max 2 guest rooms) or TVU (whole-home in eligible zones). Registrations are non-transferable.

Contact: Dept. of Planning and Permitting — (808) 768-7887

Full Honolulu 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 Honolulu or Nashville?
Honolulu is classified as "Restricted" while Nashville is "Legal but Limited." Honolulu's permit fee is $1,000 initial registration; $500 annual renewal compared to $313 permit fee in Nashville. Overall, Nashville has a more host-friendly regulatory environment.
Which city has higher STR taxes — Honolulu or Nashville?
Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET), while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax. Notably, Nashville benefits from automatic platform tax collection, while hosts in Honolulu must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Honolulu: $10,000/day for recurring violations; $5,000 initial fine. 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 Honolulu and Nashville have day limits for Airbnb?
Honolulu has no annual day limit. Nashville has no annual day limit.
Which city is better for first-time Airbnb hosts — Honolulu or Nashville?
For new hosts, consider the total cost of entry: Honolulu charges $1,000 initial registration; $500 annual renewal for permits with ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET) in taxes. Nashville charges $313 permit fee with 6% Short-Term Rental Property Tax + state/local sales tax. Automatic tax collection in Nashville makes compliance easier for beginners.