Dunlap, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Dunlap, TN?

Short-term rentals ARE ALLOWED in Dunlap, Tennessee. The city shows active STR activity with 10 current listings and a median revenue of $22,626, indicating a functioning STR market. However, specific regulations are implemented through the city's zoning framework, and any STR operation must comply with local zoning requirements.

What do Airbnb hosts actually earn in Dunlap?

Dunlap hosts earn a median $17,200/year with $125 ADR and 53% occupancy.

Top performers pull in $24,786+ per year.

See the full Dunlap market breakdown

How to Start a Short-Term Rental Business in Dunlap

Step 1: Zoning Compliance Assessment

Verify Property Zoning: Determine your property's zoning classification (R-1, R-2, R-3, C-1, C-2, I-1, I-2)
Identify Permissible Uses: Review the zoning ordinance to confirm STRs or similar uses are permitted in your zone
Check Special Exception Requirements: Some residential zones may require Board of Zoning Appeals (BZA) approval

Step 2: Property Requirements

Structure Standards: Ensure your property meets building codes and safety requirements
Parking Compliance: Provide adequate off-street parking per zoning requirements
Access Requirements: Property must have proper frontage on public streets (minimum 25 feet)

Step 3: Operational Setup

Owner/Occupant Status: Consider whether you'll operate as owner-occupied or absentee landlord
Utility Connections: Ensure proper water, sewer, and electrical connections
Insurance Coverage: Obtain appropriate liability and property insurance

Required Documents, Permits, Licenses, and Guidelines

Building and Zoning Permits

Building Permit: Required for any structural modifications or new construction
Zoning Compliance Certificate: Verify STR use is permitted in your specific zone
Site Plan Review: May be required for commercial operations (Chapter 3.17)

Business Licensing

Business License: Contact city hall for current business license requirements
State Tax Registration: Tennessee sales tax registration if applicable
Transient Occupancy Tax: State and local lodging tax compliance

Health and Safety Requirements

Health Department Approval: Coordinate with Sequatchie County Health Department
Fire Safety Compliance: Meet fire code requirements for overnight accommodations
ADA Compliance: Ensure accessibility standards are met where applicable

Specific Regulations: City, County, and State Level

City-Level Regulations (Dunlap Zoning Ordinance)

Permitted STR-Related Uses by Zoning District:

Bed and Breakfast Inns (Section 3.20):

Specifically defined as temporary lodging in a residence
Must provide breakfast for guests
Requires resident owner/operator presence
Subject to zoning district approval

Commercial Accommodation Uses:

Hotels/Motels defined as providing transient guest accommodations
Customary hotel services required (maid service, linen, etc.)
Subject to commercial zoning requirements

General Provisions Affecting STRs:

Off-Street Parking Requirements (Section 3.09):

Hotels/Motels: 1 space per employee + 1 space per guest bedroom
Tourist Courts: 1 space per room of accommodation
ADA compliance required
Maximum 10% reduction if equivalent landscaping included

Access Control (Section 3.11):

Maximum 30-foot wide access points
Maximum 2 access points per lot under 400 feet wide
No access within 15 feet of public street intersections
Curb cuts require written approval from Building Inspector

Non-Conforming Use Provisions (Section 3.02):

Existing lawful STR operations may continue as non-conforming uses
Discontinuation for 6+ months requires compliance with current zoning
Structural alterations must meet current zoning requirements

County-Level Regulations

Sequatchie County Health Department:

Supervises water supply and sewage disposal systems
Issues permits for individual septic systems
Enforces state health codes for accommodation facilities

State-Level Regulations (Tennessee)

Tennessee Department of Revenue:

Sales tax collection on transient accommodations
Business tax requirements
Hotel occupancy tax administration

Tennessee Department of Human Services:

Licensing requirements for facilities exceeding certain bed counts
Health and safety standards for child care facilities if applicable

State Fire Marshal:

Fire safety requirements for commercial lodging facilities

Contact Information

City of Dunlap

City Hall

Address: 175 Maple Street, Dunlap, TN 37327
Phone: (423) 949-2515
Website: www.dunlaptn.gov
Mayor & Commission: Contact through City Hall

Building Inspector/Zoning Official

Phone: (423) 949-2515
Issues building permits and zoning compliance certificates
Reviews site plans and commercial development proposals

Dunlap Board of Zoning Appeals (BZA)

Handles special exceptions and variance requests
Meets on first Monday of each month at City Hall
Contact: City Hall at (423) 949-2515 for application information

Dunlap Municipal Planning Commission (DMPC)

Reviews site plans for manufactured home parks and commercial developments
Contact: City Hall at (423) 949-2515

Sequatchie County

Health Department

Address: 113 Cherry Street, Dunlap, TN 37327
Phone: (423) 949-2321
Oversees health permits and sewage disposal approvals

State of Tennessee

Department of Revenue

Website: www.tn.gov/revenue
Phone: (615) 253-0600
Sales tax and business tax information

Department of Commerce and Insurance

Website: www.tn.gov/commerce
Phone: (615) 741-2241
Fire marshal and safety compliance

Important Notes and Best Practices

Verification Requirements

Always verify current zoning with city officials before purchasing or developing STR properties
Regulations can be amended; confirm all requirements are current as of 2024-2025
Special exceptions and variances require formal BZA application and approval process

Compliance Monitoring

City Building Inspector conducts regular inspections
Violations can result in fines, permit revocation, or legal action
Maintain records of all permits, inspections, and compliance activities

Market Considerations

Dunlap shows modest STR activity with 10 active listings
Median revenue of $22,626 indicates viable but limited market potential
Tourist attractions in Sequatchie Valley region may provide seasonal demand

Professional Assistance Recommended

Consult with local attorney familiar with Dunlap zoning regulations
Work with experienced local property management company
Engage certified public accountant for tax compliance planning

Source Documents

Dunlap Zoning Ordinance (Adopted July 11, 1991; amended through May 21, 2016)
Tennessee STR Regulations Database (STRProfitMap.com)
Official City of Dunlap Website

Note: This guide is based on available documentation and regulations may have been updated. Always verify current requirements with local authorities before making investment decisions.

Next step

Found a property in Dunlap?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Dunlap

Dunlap is a small city in Sequatchie County, Tennessee, where it serves as the county seat. With a population of approximately 5,000 residents, the community has the relaxed feel of a rural Southern town, set in the long, narrow Sequatchie Valley between the Cumberland Plateau to the west and Walden Ridge to the east. The town is best known as a hub for hang gliding and as a gateway to the waterfalls, gorges, and forests of the Cumberland Plateau. It lies roughly 35 miles north of Chattanooga, reached in about 45 minutes via U.S. Route 127.

Fall Creek Falls State Park is one of Tennessee's largest and most popular state parks, located about 40 miles west of Dunlap across the Cumberland Plateau. The park is anchored by the 256-foot Fall Creek Falls, one of the highest waterfalls in the eastern United States, and it also features other cascades, deep gorges, a large lake, and an extensive trail system. The drive from Dunlap typically takes around 60 minutes, depending on the route chosen.

Savage Gulf State Natural Area, part of the South Cumberland State Park complex, lies within a short drive south of town on the plateau. It offers rugged canyons, waterfalls, and more than 50 miles of hiking trails, including routes that descend into the gorge itself. The natural area is roughly 30 to 45 minutes from Dunlap, depending on which trailhead visitors choose.

Chattanooga sits about 35 miles to the south and broadens the range of possible day trips for visitors staying in Dunlap. The city is home to the Tennessee Aquarium, Ruby Falls, and the views from Lookout Mountain, along with a lively downtown along the Tennessee River. Driving time between Dunlap and downtown Chattanooga is generally 45 minutes to an hour.

Dunlap's appeal as a base for short-term rentals lies in the contrast it offers: a small, quiet mountain-valley town with easy access to some of Tennessee's most dramatic natural scenery and a major destination city within an hour. Visitors can spend their mornings on forested plateau trails or watching gliders launch from the rim, then return to a peaceful valley setting in the evening, all without the crowds and pricing of the larger tourist hubs to the south.