Harriman, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

Overview

Short-term rentals ARE ALLOWED in Harriman, Tennessee, but in a very limited capacity. The city permits "Bed and Breakfast/Tourist Homes" and "Bed and breakfast inns" under specific conditions. These are essentially owner-occupied residential properties with a limited number of guest rooms, rather than whole-home rentals commonly associated with platforms like Airbnb. The regulations are primarily contained in Harriman's 1993 Zoning Ordinance.

What do Airbnb hosts actually earn in Harriman?

Harriman hosts earn a median $28,676/year with $136 ADR and 70% occupancy.

Top performers pull in $38,222+ per year.

See the full Harriman market breakdown

How to Start a Short-Term Rental Business in Harriman

Market Assessment

Before proceeding, note that Harriman's STR regulations are quite restrictive compared to many other jurisdictions. The city only permits bed and breakfast operations rather than traditional whole-home or multiple-property STRs.

Location Requirements

To operate a legal STR in Harriman, your property must be located in one of the following zoning districts:

R-H Residential Historic District: Allows "Single family residences with a maximum of two accessory apartments"
R-1 Low Density Residential District: Allows "Single-family residences with a maximum of one accessory apartment"
R-2 Medium Density Residential District: Explicitly allows "Bed and breakfast inns"

Basic Operational Requirements

Owner Occupancy Required: The property must be your primary residence
Single Family Dwelling: Only applicable to single-family homes
Limited Guest Capacity: Maximum 4 guest rooms (R-2) or 2 accessory apartments (R-H/R-1)
Compliance with Residential Character: Operations must not change the residential character of the neighborhood

Required Documents, Permits, and Guidelines

Zoning Compliance Documentation

Site Plan: Required for most developments, including residential structures with multiple units (Section 11-310)
Certificate of Appropriateness: Required for properties in Historic Districts (H-1) before exterior alterations
Building Permits: Required for any structural modifications
Certificate of Occupancy: Required after final inspection

Specific Permits by District

Historic Districts: Must obtain approval from Harriman Historic Zoning Commission
R-2 District: Must comply with Medium Density Residential development standards
All Districts: Must meet off-street parking requirements

State-Level Requirements

As of Tennessee law, you may need:

Tennessee Sales Tax License: For transient lodging
Tennessee Business License: Depending on gross receipts
Tennessee Hotel/Motel Tax Registration: For collections

Specific Regulations

Zoning Districts Permitting STRs

R-H Residential Historic District

Single family residences with maximum 2 accessory apartments
Requires Certificate of Appropriateness from Historic Zoning Commission
Must maintain residential character
Subject to all standard residential setback and height requirements

R-1 Low Density Residential District

Single-family residences with maximum 1 accessory apartment
Customary home occupations permitted
Buffer requirements when adjacent to lower-density districts
Access restricted to Arterial or Major Collector Streets for non-residential uses

R-2 Medium Density Residential District

Explicitly permits "Bed and breakfast inns"
Multi-family dwellings permitted under PUD regulations
Additional buffer requirements for properties adjacent to R-H or R-1 districts
Professional offices permitted with conditions

Operational Restrictions

Parking Requirements

Bed & Breakfast/Tourist Homes: 1 space per guest room + 2 spaces for the residence
All parking must comply with Section 11-304 design requirements
No backing into public streets required
Minimum 5-foot setback from property lines

Home Occupation Rules (Applicable to STRs)

Must be conducted within dwelling or accessory building
No exterior alterations changing residential appearance
No outdoor display or storage of equipment
Limited to immediate family + 1 non-family employee
Traffic levels must be typical for residential neighborhood
All parking must be off-street
No signs except as permitted by Section 11-309

Occupancy Limits

Maximum 4 guest rooms for Bed & Breakfast operations
Accessory apartments limited to 1-2 units depending on district
Must not exceed residential density standards

General Zoning Compliance

Only one principal building per lot (except PUDs)
Must meet minimum setback requirements
Cannot reduce lot size below required standards
Must maintain required yard spaces

Enforcement and Penalties

Building permits required for alterations
Violations subject to building code enforcement
Non-conforming use restrictions apply
Abandonment after 6 months of non-use

Contact Information

City of Harriman

Address: City of Harriman, TN
Zoning/Planning Department: Harriman Regional/Municipal Planning Commission
Building Department: Building Official
Historic District: Harriman Historic Zoning Commission

Key Contacts

Harriman Planning Commission Secretary: Orvis McKinney (based on document signatories)
Mayor: Harold Wester (as listed in document)
City Council: City Council of Harriman

Phone/Email

Note: Specific contact information was not provided in the source document. Contact the City of Harriman directly at:

Website: cityofharriman.net
Phone: Contact city offices for current contact numbers

Regional Planning Office

Department of Economic and Community Development
Local Planning Assistance Office
Knoxville, Tennessee
(Based on document preparation credits)

Important Notes and Limitations

Regulatory Age

This guide is based on Harriman's 1993 Zoning Ordinance, which may not reflect recent updates or current STR market realities. Contact city officials for the most current regulations.

STR Model Compatibility

Harriman's regulations appear designed for traditional B&B operations rather than modern STR platforms like Airbnb. Whole-home rentals and multiple-property operations likely do not comply with current zoning.

Historic District Considerations

Properties in designated Historic Districts require additional approvals and must maintain historic character standards.

Parking Challenges

The parking requirements (1 space per guest room + 2 residential spaces) may pose challenges for B&B operations with multiple guest rooms in residential neighborhoods.

State Preemption

Tennessee has not enacted state-level STR regulations, but state tax and business licensing requirements still apply regardless of local zoning permissions.

Recommended Next Steps

Verify Current Regulations: Contact Harriman Planning Department to confirm current zoning and STR regulations
Property Assessment: Verify your property's zoning classification
Historic Review: If in Historic District, contact Historic Zoning Commission
Business Licensing: Register for appropriate state business licenses and tax accounts
Insurance: Obtain proper liability and property insurance
Legal Review: Consider consulting with local attorney familiar with Tennessee STR law

Source Documents

City of Harriman Zoning Ordinance (December 1993)
cityofharriman.net/wp-content/uploads/2023/06/City-of-Harriman-Zoning-Ordinance.pdf

Note: This analysis is based on the provided 1993 Zoning Ordinance. Always verify current regulations with local authorities before investing or operating a short-term rental in Harriman, Tennessee.

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Ask the AI Advisor about Harriman

Harriman is a small city in Roane County, Tennessee, situated in the eastern part of the state where the Emory and Clinch rivers meet. With a population of roughly 6,000 residents, it has the feel of a quiet, working-class East Tennessee town rooted in river and railroad history. The city is best known as a convenient stopover between Knoxville and Chattanooga, and as a gateway to the wider recreation opportunities of the Cumberland Plateau and the Tennessee River system. It sits about 40 miles west of Knoxville and roughly 75 miles northeast of Chattanooga, with both cities reached easily via Interstate 40.

A short drive north of Harriman brings visitors to Frozen Head State Park, a roughly 24,000-acre wilderness of hardwood forest, ridges, and creeks centered on Frozen Head Mountain. The park is well known among hikers for its extensive trail network, including a section of the Cumberland Trail, and offers camping, backcountry shelters, and a peaceful escape from the summer heat. From downtown Harriman, the park is approximately 30 to 40 minutes by car, making it a strong draw for guests who want to combine a small-town stay with backcountry hiking and waterfall viewing.

To the south and west, Watts Bar Lake, a large Tennessee Valley Authority reservoir on the Tennessee River, offers an entirely different kind of getaway. The lake stretches across Roane, Rhea, and Meigs counties and is a popular destination for boating, fishing, swimming, and lakeside cabin stays. Public access points, marinas, and quiet coves are all within about a 20-minute drive of Harriman, giving short-term rental guests an easy path to a classic Tennessee lake experience without the crowds of better-known reservoirs farther south.

In nearby Kingston, the Roane County seat just a few minutes east of Harriman, Fort Southwest Point preserves the site of a late-eighteenth-century frontier military post built during the Chickamauga Cherokee conflicts. Operated as a historical site and museum, it gives visitors a tangible sense of early Tennessee history and the strategic importance of the river crossings the area is built around.

Harriman's appeal as a short-term rental base lies in this layering of experiences. Guests can spend mornings wandering quiet small-town streets and afternoons on the water at Watts Bar Lake, then trade the lakeshore for the cooler, forested trails of Frozen Head or the historical sites of Kingston, all while staying within a comfortable drive of Knoxville's restaurants, university events, and Smoky Mountain attractions further to the east.