Nashville vs Phoenix

Tennessee Legal but Limited | Arizona Legal with Permit

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

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
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Phoenix has more favorable STR regulations overall.

Permits & Licensing

Nashville charges $313 permit fee for STR licensing, while Phoenix charges $250/year (non-refundable). Nashville renewal is annual, and Phoenix renewal is annual. Overall, Phoenix has a more permissive regulatory environment (Legal with Permit) compared to Nashville (Legal but Limited).

Tax Obligations

In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

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 Nashville face penalties including $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. In Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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 →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Nashville or Phoenix?
Nashville is classified as "Legal but Limited" while Phoenix is "Legal with Permit." Nashville's permit fee is $313 permit fee compared to $250/year (non-refundable) in Phoenix. Overall, Phoenix has a more host-friendly regulatory environment.
Which city has higher STR taxes — Nashville or Phoenix?
Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax, while Phoenix charges ~12.57% combined transient lodging tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Nashville and Phoenix have day limits for Airbnb?
Nashville has no annual day limit. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Nashville or Phoenix?
For new hosts, consider the total cost of entry: Nashville charges $313 permit fee for permits with 6% Short-Term Rental Property Tax + state/local sales tax in taxes. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Nashville and Phoenix makes compliance easier for beginners.