Overview: Are STRs allowed in Jefferson City, TN?

• Yes—short-term rentals (STRs) are allowed in Jefferson City (Jefferson County, TN) but are regulated by Jefferson County government. The city itself does not publish separate STR rules; county zoning and permitting requirements apply within Jefferson City limits. Jefferson County classifies STRs as a residential use and requires a two-step approval process: (1) a Special Exception from the Board of Adjustment (BOA), and (2) a Short-Term Rental Permit from Planning & Zoning. Properties must meet minimum lot size (≥1 acre), safety, zoning, and life-safety standards. See Jefferson County Planning & Zoning FAQs and Section 11 of the Zoning Resolution in the References.

Important note on Dandridge: Dandridge is a different municipality within Jefferson County and has its own STR permit application and fee ($300). Do not assume Dandridge’s forms or fees apply to properties located in Jefferson City proper unless your property is within Dandridge’s city limits.

How to start a short-term rental business in this market Below is a practical, step-by-step roadmap tailored to Jefferson County’s STR framework. Follow these steps to operate legally in Jefferson City.

1. Confirm eligibility under county standards

• Review Jefferson County STR eligibility criteria (see “Specific Regulations” below).
• Confirm the subject property meets: ≥1 acre; ≤5 bedrooms; zoning compliance; valid water and sanitation; adequate parking; defensible space requirements (if in wildfire overlay); legal access; no substantial zoning violations.
• Reference: Section 11 of the Zoning Resolution (Special Exception) and Section 2 (Zoning Resolution overview) in the References.

2. Special Exception approval from the Board of Adjustment (BOA)

• Submit a Special Exception application to the BOA for STR use at the property. The BOA process typically takes ~2 months from application submittal to hearing/decision.
• This approval is required before you can apply for an STR permit.
• Reference: Section 11 of the Zoning Resolution in the References.

3. Obtain Jefferson County business license(s)

• Obtain both the county business license and the city business license (if operating within a municipality’s limits). Fee amounts and application procedures vary by local government; check the appropriate jurisdiction’s website or clerk’s office.

4. Apply for the Jefferson County STR permit

• After BOA approval, apply for a Short-Term Rental Permit from Planning & Zoning.
• The application requires owner/property details, life-safety compliance, site plan, and other documentation (see “Required documents” section).
• Renewal cadence: first renewal at 6 months after BOA approval, then annually thereafter.

5. Procure liability insurance

• Maintain liability insurance with minimum coverage of $500,000 per occurrence (statewide requirement). Some jurisdictions may require higher limits; confirm with local authorities.

6. Comply with life-safety standards and inspections

• Ensure required smoke alarms, carbon monoxide detectors, and fire extinguishers are present and functional. If the BOA or local authorities require inspections, schedule and pass them.

7. Establish tax compliance and number retrieval

• Obtain required tax accounts (state and local sales/use taxes; lodging/occupancy taxes where applicable).
• Confirm applicable tax rates with the Jefferson County Trustee’s Office (sales/use) and the state Department of Revenue (lodging tax). See “Taxes” section for details.

8. Prepare operations for guests

• Designate a local 24/7 contact person.
• Set maximum occupancy in line with local limits (commonly two guests per bedroom and 12 persons per property in Tennessee municipalities; confirm local standards with Jefferson County).
• Post permit number (if required by local ordinance), contact information, and house rules.

9. Maintain compliance and renewals

• Monitor permit renewal deadlines (6 months then annually post-BOA).
• Keep all licenses, insurance, and tax remittances current to avoid revocation or penalties.

Required documents, permits, licenses, and guidelines Documents commonly required for Jefferson County STR approval (and typical STR processes across Tennessee):

• Identification: government-issued ID for owner/applicant; Federal EIN; SSN or ITIN (where applicable).
• Business licenses: Jefferson County business license and applicable city business license.
• Proof of ownership: recorded deed or title documentation.
• Special Exception approval: BOA decision and any conditions.
• STR permit application: completed Jefferson County Planning & Zoning application.
• Life Safety Compliance Verification: smoke alarms, carbon monoxide detectors, fire extinguishers—locations and counts, and certification of operability (see Dandridge STR packet for an example of the required form).
• Site plan: property layout, driveway/parking counts, egress doors, habitable spaces.
• Zoning compliance evidence: confirmation the property meets underlying zoning district standards.
• Utilities: proof of valid water and sanitation.
• Local contact information: name, address, phone(s), and email for a responsible party available 24/7.
• Insurance certificate: liability coverage (≥$500,000), listing the property and owner/operator as insured.
• Hosting platforms listing: URLs and listing names where advertised.

Permits and licenses

• Board of Adjustment Special Exception: required first; STRs are not permitted by right. Decision timeline ~2 months.
• Jefferson County STR Permit: issued by Planning & Zoning after BOA approval. Permits require renewal at 6 months post-approval and then annually.
• County and city business licenses: required before operating.
• Platform compliance: follow Airbnb/Vrbo/other platform rules regarding listing displays and local contact posting.

Specific regulations for short-term rentals (county, city, and state) County-level regulations (Jefferson County, applicable to Jefferson City)

• STRs are considered a residential use; residential building codes and residential tax assessments apply.
• Two-step process: Special Exception by BOA → STR permit by Planning & Zoning.
• Eligibility criteria:
  • Minimum lot size: ≥1 acre.
  • Underlying zoning standards: property must meet all applicable zone district requirements.
  • Bedrooms: not more than five (5) in the dwelling.
  • Parking: adequate on-site parking must be provided.
  • Defensible space: compliance required if located within the Wildfire Hazard Overlay District.
  • Utilities: valid water and sanitation must be demonstrated.
  • Access: legal access must be in place.
  • Primary dwelling: use must be within the primary dwelling unit.
  • Compliance history: property must be free of zoning violations and no substantial detriment to the intent of the Zoning Resolution.
• Renewal: BOA approval renews at 6 months; STR permit renews annually thereafter.
• References: Jefferson County Planning & Zoning FAQs; Section 11 (BOA) and Section 2 of the Zoning Resolution.

City-level (Jefferson City)

• Jefferson City does not publish distinct STR permit requirements; Jefferson County rules govern within the city. Where city business licensing applies, obtain the city business license prior to operation. Always verify any city-specific business license requirements with the city recorder’s office or municipal clerk.

State-level (Tennessee SB1086 statewide overlay)

• Liability insurance: minimum $500,000 per occurrence unless marketplace provides equivalent coverage.
• Safety equipment: smoke alarms, carbon monoxide detectors, and fire extinguishers.
• Definition: STR is a residential dwelling rented for fewer than 30 continuous days; hotels/motels are excluded.
• Reference: Tennessee Short-Term Rental Unit Act (SB1086).

Local taxes

• Sales and use tax: Obtain state and local sales tax accounts and comply with state and local sales/use tax requirements. Confirm the current combined rate and procedures with the Jefferson County Trustee’s Office (phone: 865-397-1075) and the Tennessee Department of Revenue.
• Lodging/occupancy taxes: Tennessee imposes a state-level gross receipts tax on transient accommodations. Municipal and/or county lodging/occupancy taxes may also apply depending on location. Confirm applicability and rates with the Trustee’s Office and local government (including any municipality where the STR is located).
• Income and property taxes: STR income is subject to federal and state income tax; property taxes are assessed by the county Assessor as residential.

Important practical notes

• Dandridge example: Dandridge requires an STR permit application, a $300 fee, and a Life Safety Compliance form (see Dandridge STR packet). Dandridge is a different municipality; its requirements do not automatically apply to Jefferson City properties.
• Occupancy guidance: Many Tennessee jurisdictions limit occupancy to two persons per bedroom and 12 persons per property; confirm the exact local limit for your property with Jefferson County.

Compliance risks

• Operating without BOA approval or an STR permit can result in enforcement action, including fines and permit revocation.
• Insurance lapses, failure to meet life-safety standards, or non-compliance with zoning criteria can trigger permit denial or suspension.
• Non-remittance of required taxes can lead to penalties and interest.

Contact information (local authorities)

• Jefferson County Planning & Zoning (STRs, Special Exceptions)
  • Phone: 865-397-1072
  • Address: Jefferson County Courthouse, 265 Market Street, Dandridge, TN 37725
• Board of Adjustment (Special Exception review)
  • Phone: 865-397-1072 (general contact for BOA proceedings)
• Jefferson County Trustee (sales/use tax, lodging tax)
  • Phone: 865-397-1075
  • Address: Jefferson County Courthouse, 265 Market Street, Dandridge, TN 37725
• State of Tennessee (Department of Revenue, lodging/gross receipts tax)
  • Website: dor.tn.gov
• City of Dandridge (municipal STR permit example, if applicable)
  • Phone: 865-397-7420
  • Address: 131 East Main Street, Dandridge, TN 37725
• City of Jefferson City (municipal clerk/business licensing—verify requirements)
  • Phone: Not listed in provided sources; contact city hall for current details.

References (source links)

• Jefferson County Planning & Zoning: Short-Term Rentals (FAQs)
  • www.jeffco.us/2427/Short-Term-Rentals
• Jefferson County Zoning Resolution: Section 11 (Board of Adjustment)
  • www.jeffco.us/DocumentCenter/View/2484/Section-11-Board-of-Adjustment-PDF
• Jefferson County Zoning Resolution (full text overview)
  • www.jeffco.us/2460/Zoning-Resolution
• Dandridge, TN: Short-Term Rental Application and Life Safety form (example of required documentation)
  • dandridgetn.gov/wp-content/uploads/2024/05/Short-Term-Rental-Application.pdf
• Tennessee Short-Term Rental Unit Act (SB1086)
  • www.capitol.tn.gov/Bills/110/Bill/SB1086.pdf
• Tennessee Department of Revenue (lodging/gross receipts tax)
  • dor.tn.gov

If you are serious about operating in Jefferson City, begin with the BOA Special Exception, lock in your zoning eligibility, and then finalize the STR permit, licenses, insurance, and tax setup. Keep renewal calendars and compliance logs to ensure ongoing permit validity and avoid avoidable enforcement.