Overview: Are short-term rentals allowed in Nashville, IN?

• Yes. Short‑term rentals (STRs) are allowed in Nashville, Indiana (Brown County) but only by Special Exception from the Board of Zoning Appeals (BZA). A separate “Home Stay” option (owner‑occupied, up to two guestrooms) exists and is less stringent, but still limited.
• Eligibility depends on zoning (town limits) and the location of the parcel (inside vs. outside town limits). Outside town limits, the county requires 250‑foot spacing from the nearest residence and 1,320‑foot spacing from the nearest STR. Inside the Town of Nashville, eligibility varies by zoning classification.
• The approval path is a public hearing process with the BZA, and typical processing time is about 4–6 weeks.

Note on State protections (Indiana): State law caps initial STR permit fees at $150 and prohibits localities from completely banning STRs. Permits expire after one year and may not be charged a removal fee (IC 36‑1‑24‑13).

How to start a short‑term rental business in Nashville, IN

1. Confirm eligibility and zoning

• Outside Town of Nashville (county zoning): Check whether the parcel meets the 250‑foot and 1,320‑foot spacing requirements. Homes on large, rural parcels often fit these criteria; dense subdivisions typically do not.
• Inside Town of Nashville (municipal zoning): Confirm that the zoning district allows STRs or that the use can be approved via the BZA. Commercial/mixed‑use districts tend to be more permissive.

2. Initiate the Special Exception application

• Prepare materials for BZA consideration:
  • Site plan showing distances to the nearest residence and to any existing STRs
  • Sketch or photos of the dwelling and its setbacks
  • Narrative describing the STR, proposed occupancy, parking, and management plan
• File with the Brown County Planning Department; a public hearing will be scheduled. Note that a “Not‑Owner‑Occupied” designation requires an additional non‑conveyance ownership summary and may affect fee and renewal expectations.

3. Complete inspections and safety setup

• While not universally mandated for STRs in Indiana, good practice includes:
  • Smoke detectors in every bedroom and on each level
  • Carbon monoxide detectors near any fuel‑burning appliance
  • Fire extinguisher on each level
  • Posted emergency exit plan
  • Clearly visible address from the road; adequate outdoor lighting
  • Wildlife‑safe garbage handling for rural properties
• Be prepared to respond to any BZA or county conditions.

4. Register for taxes and obtain required business registrations

• State Business Registration (Indiana Secretary of State) for the operating entity
• Indiana Registered Retail Merchant Certificate (RRMC) to collect/remit sales tax
• Brown County Innkeeper’s Tax registration with the County Treasurer

5. Acquire liability insurance

• Minimum $1,000,000 coverage is recommended to mitigate guest and neighbor risk.

6. Put an operations plan in place

• Establish guest screening and house rules
• Provide 24/7 response via a local contact person (or the owner if local)
• Maintain a guest registry for tax reporting
• Create cleaning and maintenance protocols and vendor relationships

7. Launch and then maintain

• List your property after BZA approval
• Collect/remit the 7% Indiana sales tax on gross receipts
• Remit Brown County innkeeper’s tax (up to 5%; confirm current rate with the Treasurer’s office)
• Renew registrations annually; track your BZA permit/approval
• Monitor neighbor feedback and remain complaint‑responsive

Required documents, permits, licenses, and guidelines

• Board of Zoning Appeals (BZA) Special Exception approval for the STR (public hearing; decision recorded)
• State Business Registration (Indiana)
• Indiana Registered Retail Merchant Certificate (RRMC)
• Brown County Innkeeper’s Tax registration
• Liability insurance policy (≥$1,000,000 recommended)
• Local contact information posted in the unit, reachable 24/7
• Guest registry and tax filing records
• Property safety documentation and, as applicable, inspection communications/responses

Specific regulations: city (Town of Nashville), county, and state

City (Town of Nashville, IN)

• Eligibility is zoning‑dependent. STRs are not automatically permitted in all residential zones; the Town uses the BZA process to evaluate STR requests.
• “Home Stay” is a single‑family residence where the owner lives on‑site and offers up to two guestrooms for rent to the public. This option generally faces fewer hurdles than a full STR Special Exception.

County (Brown County, IN)

• Special Exception required for all STRs outside the town limits.
• Spacing limits: at least 250 feet from the nearest residence and at least 1,320 feet from any other STR.
• Approval is complaint‑sensitive. Violations can result in revocation of the Special Exception and other penalties.

State (Indiana)

• STRs are allowed; municipalities cannot prohibit them entirely.
• Permit fee cap: $150 (initial) and $150 for revocation; no removal fee.
• Permits expire after one year.
• Sales tax: 7% of gross rental receipts for stays under 30 days.

Contact information

• Brown County Planning Department

  • Phone: (812) 988‑5479
  • Website: browncounty‑in.gov
  • Address: P.O. Box 146, Nashville, IN 47448
  • Email: Contact via website

• Brown County Treasurer (Innkeeper’s Tax)

  • Phone: (812) 988‑5481

• Indiana Department of Revenue (Sales Tax Registration/Compliance)

  • Phone: (317) 787‑8201
  • Website: in.gov/dor

• Brown County Convention & Visitors Bureau (tourism data/marketing)

  • Phone: (812) 988‑7303
  • Website: browncounty.com

Links to source pages (IMPORTANT)

• Nashville, IN STR local rules and application guidance: local.theoffersheet.com/legal/brown-county-in/ (covers Special Exception, spacing, taxes, approvals, and contacts)
• State protections and permit fee caps (Indiana Short‑Term Rental Unit Act, IC 36‑1‑24‑13): iga.in.gov/legislative/laws/2025/ic/titles/36#36-1-24-13
• Brown County Planning Department: www.browncounty-in.gov
• Brown County Treasurer: www.browncounty-in.gov/office/treasurer
• Indiana Department of Revenue: www.in.gov/dor

Note: This guide reflects the rules summarized above and focuses on the Nashville/Brown County, IN market. State‑level protections apply; verify the current fee and spacing limits with the Planning Department before applying.