What Is an STR in Knoxville? (And What You Need to Know Before Buying One)
If you’ve been hearing the term “STR” a lot lately—especially around Downtown Knoxville—you’re not alone.
Short-term rentals have become a huge part of the investment conversation here, but what many people don’t realize is that Knoxville has very specific rules around them.
Before you buy one (or turn your current home into one), here’s exactly what you need to know.
What Is an STR?
STR stands for Short-Term Rental—a property that’s rented out for short stays, typically less than 30 days.
Think:
- Airbnb
- VRBO
- Weekend game-day rentals
- Travel stays near downtown or the University of Tennessee
In a market like Knoxville—with UT football, concerts, and a growing downtown—STRs can be incredibly appealing.
But they are not allowed everywhere.
Knoxville’s STR Rules (The Basics)
The City of Knoxville regulates all short-term rentals, and you must follow their guidelines to legally operate one.
Here are the key things to know:
1. You Must Have a Permit
You cannot legally operate an STR in Knoxville without a permit from the city.
There are two main types:
- Owner-Occupied STR
You live in the home and rent out a portion of it (like a basement or guest suite) - Non-Owner-Occupied STR (Investment Property)
You do not live there—this is what most investors are looking for
👉 Important: Non-owner-occupied STRs are much more restricted.
2. Zoning Matters (A Lot)
Not every property in Knoxville can be used as an STR—especially for investment purposes.
- Non-owner-occupied STRs are typically only allowed in specific zoning areas
- Many residential neighborhoods do not allow them at all
This is where I see people make the biggest (and most expensive) mistake—buying a home thinking they can Airbnb it… and then finding out they can’t.
3. There Are Caps and Restrictions
Knoxville has placed limits on how many STR permits can be issued in certain areas—particularly for non-owner-occupied properties.
This means:
- Even if a property qualifies, you may not be able to get a permit if the area is already at capacity
- The market for STR-approved properties is very specific and competitive
4. You’ll Need to Meet Safety & Compliance Standards
To operate legally, you’ll also need:
- Proper insurance
- Fire safety measures (smoke detectors, exits, etc.)
- Local contact information for guests
- Payment of local hotel/motel taxes
It’s not just “list it and go”—there’s a process behind it.
Why STRs Are Still So Popular in Knoxville
Even with the regulations, STRs are still a strong investment here because of:
- University of Tennessee events (especially football weekends)
- Downtown growth and tourism
- New stadium development and entertainment districts
- Year-round demand for short stays
When done correctly, they can perform incredibly well.
My Take (From What I’m Seeing Locally)
STRs can be an amazing opportunity—but only if you buy the right property in the right location.
This is not a “buy anything and Airbnb it” market.
The clients I see succeed with STRs are the ones who:
- Do their due diligence upfront
- Focus on approved areas
- Treat it like a true investment, not a guess
What This Means for You
If you’re thinking about buying an STR:
You need to confirm zoning and permit eligibility before you ever go under contract.
If you already own a home and want to turn it into one:
We need to check if your property qualifies—and what steps are required to get approved.
STRs in Knoxville are a great opportunity—but they’re a strategic one.
If you’re even thinking about it, I’m happy to help you navigate what’s allowed, what’s not, and where the best opportunities are right now 🤍🏡
