Overview Short‑term rentals (STRs, also called short‑term vacation rentals, or STVRs) are permitted in Hixson, TN—provided the property is located in unincorporated Hamilton County and meets the county’s minimum acreage rules. As of the county’s July 2024 rule change, new STRs are banned on lots smaller than 1 acre; in agriculturally zoned areas, the minimum is 2 acres. Existing permitted STRs and applications in process are grandfathered. Hixson is outside Chattanooga city limits, so Chattanooga’s city zoning and permit rules do not apply in Hixson. Operators must still comply with applicable Tennessee state law (sales and occupancy taxes, registration) and Hamilton County requirements.

Note on scope: Because Hixson is an unincorporated area of Hamilton County (outside the City of Chattanooga), there are no Hixson‑specific city ordinances; county rules govern. Where relevant, this guide also notes broader City of Chattanooga rules for context.

Allowed by default? (High‑level answer) Yes, in the unincorporated areas of Hamilton County (which includes most of Hixson), a STR/STVR can operate legally if:

• The lot is at least 1 acre in size.
• If the parcel is agriculturally zoned, the lot must be at least 2 acres.
• The operator complies with Tennessee’s state tax and registration requirements (see below). Grandfathering: STRs with existing permits and those in the approval pipeline before the July 2024 rule took effect are allowed to continue or complete.

How to Start a Short‑Term Rental Business in Hixson (Hamilton County) — Step‑by‑Step

1. Verify zoning and parcel size

• Confirm the subject property is in unincorporated Hamilton County. Hixson is largely unincorporated; if the property lies within Chattanooga city limits, different rules (city permits, zoning) apply.
• Confirm lot size meets county minimums:
  • General unincorporated areas: ≥ 1 acre.
  • Agriculturally zoned areas: ≥ 2 acres.
• If the parcel is agriculturally zoned, ensure your intended use and any required site plan or access meet county standards.

2. Determine applicable tax registrations Because STRs are transient lodging, operators must register and comply with Tennessee tax rules:

• Sales and Use Tax: Register with the Tennessee Department of Revenue (TNDoR) if you have sales tax nexus (often upon the first rental). STR hosting is taxable.
• State and Local Occupancy Tax: Tennessee imposes a state-level occupancy tax on lodging. Local occupancy taxes may also apply depending on jurisdiction. Register with TNDoR and follow instructions for collecting/remitting state and applicable local occupancy taxes.
• Hamilton County (Trustee) occupancy tax: The provided county occupancy tax form appears to be a Trustee‑administered blank form for remittance; operators should verify the current local occupancy tax rate and filing cadence with the Trustee’s office before collecting/remitting.

3. Obtain required business registrations

• Business License: If operating as a business entity (LLC, corporation, etc.), obtain the applicable Tennessee business registration. Hixson (unincorporated Hamilton County) does not require a separate municipal business license. Some investors choose to form an LLC for liability protection.
• Tennessee Sales Tax Account: Register with TNDoR to collect/remit state sales tax on lodging and applicable occupancy tax.

4. Establish compliance controls

• Local contact: While Hixson is outside city jurisdiction, adopting the City of Chattanooga’s best practice—having a local contact available 24/7 and able to respond in person within two hours—will reduce neighbor complaints and mitigate enforcement risk.
• Safety and insurance: Maintain liability coverage appropriate for STR operations; consider higher limits to cover guest‑related incidents. Post emergency procedures and contact information in each unit.
• Guest management: Implement house rules, quiet hours, and monitoring to avoid nuisance complaints. Track occupancy to ensure you remain within any policy caps you adopt and the parcel‑size constraints.

5. Maintain annual renewals and reporting

• State registrations remain active unless canceled by the operator. Keep current with state filings and payments.
• Re‑check any county policy updates annually; grandfathering does not exempt operators from future code changes.

Required Documents, Permits, Licenses, and Guidelines (Hamilton County/Tennessee)

County requirements (Hamilton County — unincorporated areas)

• No Hixson city permit is required since Hixson is not inside Chattanooga’s city limits.
• Acreage verification: A parcel survey or tax assessor record to confirm lot size and zoning.
• (Optional but recommended) Proof of hazard/liability insurance for the STR.
• Local contact information (name, phone, email, physical address) for response within two hours.

City of Chattanooga (provided for context; not applicable to Hixson unless the property is inside city limits) Chattanooga’s STR program recognizes two permit types:

• Homestay: Owner‑occupied as primary residence (≥ 183 days/year), allowed in commercial zones that allow hotels and within the downtown STR overlay.
• Absentee: Not owner‑occupied, allowed only in commercial zones that allow hotels; not permitted in residential zones.
• Application/renewal fees: $250 for homestays; $500 for absentee.
• Processing: ~30 days; annual renewals required.
• Operational requirements include a 24/7 local contact who can respond in person within two hours, posted emergency escape plans, and compliance with zoning. Note: These rules do not apply to Hixson properties located outside the City of Chattanooga.

State of Tennessee requirements

• Tennessee Sales and Use Tax: Register with TNDoR; collect/remit state sales tax on STR charges.
• State Occupancy Tax: Register with TNDoR to collect/remit Tennessee’s occupancy tax on lodging.
• Business registration: Entity formation (LLC, corporation) is optional but common for liability protection; follow Tennessee Secretary of State and IRS requirements if applicable.

Specific Regulations: Hixson (Hamilton County), City of Chattanooga (context), and Tennessee

Hamilton County (unincorporated) — current policy

• Acreage rules (effective July 2024): New STRs banned on lots < 1 acre. In agriculturally zoned areas, minimum lot size is 2 acres.
• Grandfathering: Existing permitted STRs and those with pending applications when the rule took effect may continue/finish the process.
• Enforcement: Policy is enforced by Hamilton County. The county resolution established the acreage thresholds; specific enforcement contacts were not provided in the content provided.
• Multi‑family context: The county policy applies to residential uses broadly; no separate multi‑family saturation limit (e.g., “25% cap”) was cited for Hamilton County in the provided material.

City of Chattanooga (context only; not applicable to Hixson unless city address)

• Zones allowing absentee STVR permits: C‑2, C‑3, C‑4, C‑5, UGC, CC, IX, RF, RV, CX, SH.
• Zones allowing homestays: All of the above plus any residence within the STR overlay (downtown footprint).
• Operational mandates: 24/7 local contact; able to respond in person within two hours; posted emergency escape plans; annual certificate renewals; application/renewal fees: $250 (homestay) or $500 (absentee); administrative hearing process with fines up to $500/day for violations.
• Multi‑family saturation: Up to 25% of units in a building may be STRs.
• Rezoning: 18‑month cooling‑off period before applying for an absentee STVR after rezoning from residential to commercial.
• Appeals: Applications may be appealed to the Board of Zoning Appeals; further appeal to Chancery Court within 60 days. Note: Hixson properties are outside the City of Chattanooga’s jurisdiction, so these rules do not apply unless your property is inside city limits.

Tennessee state requirements

• Sales and occupancy taxes: STRs are subject to Tennessee sales tax and state occupancy tax. Register with TNDoR, collect from guests, and remit monthly/quarterly as required.
• State‑level enforcement: TNDoR administers tax compliance and may assess penalties for non‑compliance.
• Municipal business license: Generally required where you physically operate. Hixson (unincorporated) has no separate municipal business license requirement; Hamilton County does not impose one in unincorporated areas in the provided content.

Contact Information

Hamilton County (unincorporated STRs)

• Hamilton County Commission (policy setting): See Hamilton County government website or records of the July 10, 2024 resolution for official contacts.
• Hamilton County Trustee (occupancy tax): Hamilton County Trustee office (refer to the county’s website or contact the Trustee’s office for rates/filing; the provided blank occupancy tax form suggests Trustee administration for local occupancy tax).

City of Chattanooga (context only; not for Hixson unless your property is inside city limits)

• Zoning Division (Land Development Office)
  • Phone: (423) 643‑5891
  • Email: stvr@chattanooga.gov
  • Portal: Chattanooga OpenGov — Short‑Term Vacation Rental
  • Chattanooga Zoning & GIS maps (for properties inside city limits)

Tennessee Department of Revenue (for sales and occupancy tax registrations)

• Phone and registration: Contact TNDoR via tn.gov/revenue or by phone; remit state sales tax and occupancy tax.
• Hamilton County occupancy tax form: Hamilton County Trustee occupancy tax form (verify applicability and current rate).

Note: For Hixson properties, direct Hamilton County STR contacts for permits were not explicitly listed in the provided content. Contact the County Commission/Administrator or the Trustee’s office for the current enforcement contact and any county‑specific registration requirements.

Links to Source Pages

Hamilton County acreage policy (news coverage)

• “Lots to consider: Hamilton County sets new acreage rules for short‑term vacation rentals” (NewsChannel9) — newschannel9.com/news/local/lots-to-consider-hamilton-county-sets-new-acreage-rules-for-short-term-vacation-rentals-stvrs-airbnb-rental-home-regulations

City of Chattanooga STR permit and details (context; not applicable to Hixson unless inside city limits)

• City of Chattanooga — Short‑Term Vacation Rental (permits, fees, zoning, process) — chattanooga.gov/pay-and-apply/permits-applications/short-term-rental
• City of Chattanooga — STVR application portal (OpenGov) — chattanoogatn.viewpointcloud.com/categories/1101/record-types/6504
• Chattanooga Chamber of Commerce — “Chattanooga passes short term vacation rental reform” — chattanoogachamber.com/chattanooga-passes-short-term-vacation-rental-reform/
• Chattamatters — “What’s new with short‑term vacation rentals?” (explanation and overlay map) — chattamatters.com/short-term-vacation-rentals-chattanooga/

Hamilton County occupancy tax form

• Hamilton County occupancy tax blank form (Trustee) — www.hamiltontn.gov/pdf/trustee/docs/CountyBlankTaxForm.pdf

Additional context (investor‑oriented)

• Jaken Finance Group — “Chattanooga Short‑Term Rental Laws 2026: A Complete Guide” — www.jakenfinancegroup.com/chattanooga-short-term-rental-laws-2026-a-complete-guide

Quick facts for Hixson investors

• Allowed: Yes, if in unincorporated Hamilton County and lot ≥ 1 acre (≥ 2 acres in agriculturally zoned areas).
• Not allowed: New STRs on lots < 1 acre; agriculturally zoned parcels under 2 acres.
• Permit vs. registration: No Hixson or Hamilton County permit requirement is cited in the provided content; ensure you follow any county enforcement process and confirm whether any local registration applies. State tax registrations (TNDoR) are required for sales and occupancy tax.
• Fees: No Hixson or Hamilton County fees specified in the provided content. City of Chattanooga (not applicable to Hixson) charges $250 (homestay) and $500 (absentee) annually.
• Zoning overlays: Chattanooga’s downtown STR overlay and commercial zones do not apply to Hixson unless the property lies within city limits.

Practical checklist for Hixson (Hamilton County)

• Confirm lot size and zoning category.
• Register with TNDoR for state sales and occupancy taxes.
• Obtain appropriate liability coverage; adopt a local contact policy for rapid response.
• Establish guest rules and anti‑nuisance procedures.
• File and remit all required taxes; verify any Hamilton County occupancy tax requirements with the Trustee.
• Monitor for any county policy updates (grandfathered status does not exempt you from future changes).