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

Yes, short-term rentals are explicitly allowed in Murfreesboro, TN. The city has no specific mention of STR restrictions in its code of ordinances, and the market currently supports approximately 162 active STR listings with an average monthly revenue of $1,945. While the city does not have explicit STR regulations, operators must comply with state and county tax requirements and obtain necessary business licenses.

How to Start a Short-Term Rental Business in Murfreesboro

Step 1: Business License Acquisition

1. County Business License: Required through Rutherford County Clerk's office ($15 fee)
2. City Business License: Required through the applicable city (Smyrna, Murfreesboro, Eagleville) ($15 fee)
3. State Registration: Obtain sales tax certificate from Tennessee Department of Revenue

Step 2: Tax Registration and Compliance

1. Register for sales tax collection with Tennessee Department of Revenue
2. Set up systems to collect and remit required taxes monthly/quarterly
3. Implement occupancy tax collection (5% to county and city)

Step 3: Property Preparation

1. Ensure property meets safety requirements (smoke alarms, CO detectors)
2. Consider zoning compliance and neighborhood compatibility
3. Prepare property for guest registration and check-in processes

Required Documents, Permits, Licenses, and Guidelines

Mandatory Licenses and Registrations:

• Rutherford County Business License ($15)
• City Business License ($15) - apply to your specific city
• Tennessee Sales Tax Certificate (free through state registration)
• Business Tax Registration (for gross receipts reporting)

Tax Obligations:

• Business Tax: Paid yearly on gross receipts to State of Tennessee
• Sales Tax: 7% state + applicable local rates, paid quarterly
• Occupancy Tax: 5% paid monthly to county and city based on monthly gross receipts

Safety Compliance:

• Smoke alarms in every sleeping room
• Carbon monoxide alarms within 10 feet of sleeping rooms (if fossil-fuel-burning appliances present)
• Property maintenance responsibilities
• Guest safety protocols

Specific Regulations: City, County, and State Level

State Level (Tennessee):

• Definition: STRs are residential dwellings rented for less than 30 continuous days
• State Sales Tax: 7% on rentals under 90 consecutive days
• Hotel Tax: 1% additional for whole-house rentals (8% total)
• Registration: Required through Tennessee Department of Revenue
• Safety Code: Tennessee Code § 68-120-112 mandates smoke alarms and CO detectors
• No State License Required: Only tax registration and local business licenses

County Level (Rutherford County):

• Occupancy Tax: 5% monthly on gross receipts
• Business License: Required through County Clerk
• Reporting: Monthly occupancy tax remittance required
• Compliance: County handles business license processing

City Level (Murfreesboro/Smyrna/Eagleville):

• No Specific STR Ordinances: City code does not contain specific STR regulations
• City Business License: Required ($15)
• City Occupancy Tax: 5% monthly on gross receipts
• Zoning: Generally permissive, subject to standard residential zoning
• Permitting: No STR-specific permits required

Local Authority Contact Information

Primary Authority - County Clerk:

Lisa Duke Crowell, County Clerk

• Main Office: 319 N Maple St, Suite 121, Murfreesboro, TN 37130
• Phone: (615) 898-7800
• Fax: (615) 898-7830
• Hours: 8AM-4PM Monday-Thursday, 8AM-5PM Friday
• Online Application: www.tncountyclerk.com

Additional Offices:

Blackman Office

• 3906 Blaze Dr, Suite A, Murfreesboro, TN 37128
• Phone: (615) 898-7995
• Hours: 8AM-4PM Monday-Thursday, 8AM-5PM Friday

Smyrna Office

• 205 I St, Smyrna, TN 37167
• Phone: (615) 459-9692
• Fax: (615) 355-4118
• Hours: 8AM-4PM Monday-Thursday, 8AM-5PM Friday

Eagleville Office

• Eagleville City Hall, 108 S Main St, Eagleville, TN 37060
• Phone: (615) 849-0330
• Hours: First working day of each week, 8AM-4PM (closed 12PM-1PM for lunch)

State Tax Authority:

Tennessee Department of Revenue

• Online Portal: Available for sales tax registration
• Processing Time: Approximately 10 business days
• Website: tncountyclerk.com (for business license applications)

Source Links

• Rutherford County STR Tax Information: rutherfordcountytn.gov/rental-tax
• County Clerk Business Information: rutherfordcountytn.gov/county-clerk
• Murfreesboro Market Overview: www.buildyourbnb.com/us-airbnb-and-short-term-rental-regulations/murfreesboro
• Tennessee STR Regulations: www.lodgecompliance.com/states/tennessee
• Rutherford County STR Portal: rutherfordctytn.govoffice.com/short-term-rental

Market Performance Data

Current Market Metrics (2021 Data):

• Active Listings: 162
• Average Daily Rate: $138
• Average Occupancy Rate: 61%
• Average Monthly Revenue: $1,945
• Market Rating: Neutral

Real Estate Context:

• Median Sale Price: $247,700
• 4-Bedroom Rental Index: $1,995
• Market Appreciation: 6.85% (12 months), 17.45% (2 years), 47.9% (5 years)
• Average Market Rent: $1,584

This regulatory environment presents a relatively accessible market for STR investors, with straightforward licensing requirements and no restrictive local ordinances, though operators must maintain diligent tax compliance and safety standards.