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

Short-term rentals ARE ALLOWED in Dunlap, Tennessee. The city shows active STR activity with 10 current listings and a median revenue of $22,626, indicating a functioning STR market. However, specific regulations are implemented through the city's zoning framework, and any STR operation must comply with local zoning requirements.

How to Start a Short-Term Rental Business in Dunlap

Step 1: Zoning Compliance Assessment

1. Verify Property Zoning: Determine your property's zoning classification (R-1, R-2, R-3, C-1, C-2, I-1, I-2)
2. Identify Permissible Uses: Review the zoning ordinance to confirm STRs or similar uses are permitted in your zone
3. Check Special Exception Requirements: Some residential zones may require Board of Zoning Appeals (BZA) approval

Step 2: Property Requirements

1. Structure Standards: Ensure your property meets building codes and safety requirements
2. Parking Compliance: Provide adequate off-street parking per zoning requirements
3. Access Requirements: Property must have proper frontage on public streets (minimum 25 feet)

Step 3: Operational Setup

1. Owner/Occupant Status: Consider whether you'll operate as owner-occupied or absentee landlord
2. Utility Connections: Ensure proper water, sewer, and electrical connections
3. Insurance Coverage: Obtain appropriate liability and property insurance

Required Documents, Permits, Licenses, and Guidelines

Building and Zoning Permits

• Building Permit: Required for any structural modifications or new construction
• Zoning Compliance Certificate: Verify STR use is permitted in your specific zone
• Site Plan Review: May be required for commercial operations (Chapter 3.17)

Business Licensing

• Business License: Contact city hall for current business license requirements
• State Tax Registration: Tennessee sales tax registration if applicable
• Transient Occupancy Tax: State and local lodging tax compliance

Health and Safety Requirements

• Health Department Approval: Coordinate with Sequatchie County Health Department
• Fire Safety Compliance: Meet fire code requirements for overnight accommodations
• ADA Compliance: Ensure accessibility standards are met where applicable

Specific Regulations: City, County, and State Level

City-Level Regulations (Dunlap Zoning Ordinance)

Permitted STR-Related Uses by Zoning District:

Bed and Breakfast Inns (Section 3.20):

• Specifically defined as temporary lodging in a residence
• Must provide breakfast for guests
• Requires resident owner/operator presence
• Subject to zoning district approval

Commercial Accommodation Uses:

• Hotels/Motels defined as providing transient guest accommodations
• Customary hotel services required (maid service, linen, etc.)
• Subject to commercial zoning requirements

General Provisions Affecting STRs:

Off-Street Parking Requirements (Section 3.09):

• Hotels/Motels: 1 space per employee + 1 space per guest bedroom
• Tourist Courts: 1 space per room of accommodation
• ADA compliance required
• Maximum 10% reduction if equivalent landscaping included

Access Control (Section 3.11):

• Maximum 30-foot wide access points
• Maximum 2 access points per lot under 400 feet wide
• No access within 15 feet of public street intersections
• Curb cuts require written approval from Building Inspector

Non-Conforming Use Provisions (Section 3.02):

• Existing lawful STR operations may continue as non-conforming uses
• Discontinuation for 6+ months requires compliance with current zoning
• Structural alterations must meet current zoning requirements

County-Level Regulations

Sequatchie County Health Department:

• Supervises water supply and sewage disposal systems
• Issues permits for individual septic systems
• Enforces state health codes for accommodation facilities

State-Level Regulations (Tennessee)

Tennessee Department of Revenue:

• Sales tax collection on transient accommodations
• Business tax requirements
• Hotel occupancy tax administration

Tennessee Department of Human Services:

• Licensing requirements for facilities exceeding certain bed counts
• Health and safety standards for child care facilities if applicable

State Fire Marshal:

• Fire safety requirements for commercial lodging facilities

Contact Information

City of Dunlap

City Hall

• Address: 175 Maple Street, Dunlap, TN 37327
• Phone: (423) 949-2515
• Website: www.dunlaptn.gov
• Mayor & Commission: Contact through City Hall

Building Inspector/Zoning Official

• Phone: (423) 949-2515
• Issues building permits and zoning compliance certificates
• Reviews site plans and commercial development proposals

Dunlap Board of Zoning Appeals (BZA)

• Handles special exceptions and variance requests
• Meets on first Monday of each month at City Hall
• Contact: City Hall at (423) 949-2515 for application information

Dunlap Municipal Planning Commission (DMPC)

• Reviews site plans for manufactured home parks and commercial developments
• Contact: City Hall at (423) 949-2515

Sequatchie County

Health Department

• Address: 113 Cherry Street, Dunlap, TN 37327
• Phone: (423) 949-2321
• Oversees health permits and sewage disposal approvals

State of Tennessee

Department of Revenue

• Website: www.tn.gov/revenue
• Phone: (615) 253-0600
• Sales tax and business tax information

Department of Commerce and Insurance

• Website: www.tn.gov/commerce
• Phone: (615) 741-2241
• Fire marshal and safety compliance

Important Notes and Best Practices

Verification Requirements

• Always verify current zoning with city officials before purchasing or developing STR properties
• Regulations can be amended; confirm all requirements are current as of 2024-2025
• Special exceptions and variances require formal BZA application and approval process

Compliance Monitoring

• City Building Inspector conducts regular inspections
• Violations can result in fines, permit revocation, or legal action
• Maintain records of all permits, inspections, and compliance activities

Market Considerations

• Dunlap shows modest STR activity with 10 active listings
• Median revenue of $22,626 indicates viable but limited market potential
• Tourist attractions in Sequatchie Valley region may provide seasonal demand

Professional Assistance Recommended

• Consult with local attorney familiar with Dunlap zoning regulations
• Work with experienced local property management company
• Engage certified public accountant for tax compliance planning

Source Documents

• Dunlap Zoning Ordinance (Adopted July 11, 1991; amended through May 21, 2016)
• Tennessee STR Regulations Database (STRProfitMap.com)
• Official City of Dunlap Website

Note: This guide is based on available documentation and regulations may have been updated. Always verify current requirements with local authorities before making investment decisions.