Can You Airbnb a DADU in Nashville? The Short-Term Rental Rules
It’s the first question almost every owner asks before building a backyard home, and the answer surprises people. Here’s the straight story on short-term renting a Nashville DADU, from a local builder.
The dream is tidy: build a little backyard home, list it on Airbnb, let it pay for itself. For a Nashville DADU built under the new by-right rules, though, the short-term-rental piece comes with a real catch, and it’s better to know it before you pour a foundation than after.
The short answer
On a single-family-zoned lot, short-term rental (Airbnb/VRBO) is generally NOT a permitted use in a newly built detached accessory dwelling unit. Metro’s code is explicit: where a new DADU is built (or created by converting an existing accessory structure) on a single-family, Residential Neighborhood (RN), or Residential Limited (RL) lot, short-term rental property use is not permitted in that accessory dwelling. So no, you typically can’t legally Airbnb a brand-new backyard DADU on a standard residential lot.
What you CAN do with it
A DADU is still a fantastic income and lifestyle asset, just on a longer horizon:
- Long-term rental. A standard 30+ day lease is allowed and is what most owners build for, steady monthly income that often covers a big chunk of the build over time.
- Family. Aging parents, an adult kid, a returning college student, close but separate.
- Home office / studio. A quiet, dedicated workspace detached from the main house.
- Guest house for visitors.
The owner-occupancy rule (don’t miss this one)
Metro also requires that one of the two homes on the lot be owner-occupied, you live in either the main house or the DADU. So a DADU isn’t a way to turn a property into two pure rentals; it’s a second home behind the one you live in.
What about lots that aren’t single-family?
Zoning is everything here. The restriction above is written for single-family / RN / RL lots, which is most of the residential city. Other zoning, overlays, or existing permitted short-term-rental situations can change the picture, but you should never assume it. The only safe answer is to confirm your parcel’s zoning and any overlays before you count on rental income. We do that at the free consult, free, before anyone spends money on drawings.
So is a DADU still worth it?
For most of our clients, yes, just run the numbers on long-term rent, not nightly. A backyard home that quietly earns a monthly check, houses family, or doubles your usable space (and adds real resale value) is a strong play even without Airbnb. And because we build the home, the pool, and the deck as one project, your whole backyard gets planned together instead of bolted on.
Want the exact rules for your lot? That’s the first thing we confirm, no cost, no pressure.
Curious what your backyard can legally hold?
Free consult, we’ll confirm your lot’s zoning, the rental rules, and what it’ll cost.
Call 615·863·1836General information about Nashville’s DADU and short-term-rental rules as of June 2026, not legal or zoning advice. Codes change and depend on your specific lot’s zoning and overlays, we confirm the current rules for your parcel at the free consult.