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

Yes—short-term rentals are allowed in McMinnville, but only in limited forms and subject to zoning, occupancy, parking, and administrative approvals.

• In the R‑1 Low Density Residential District: “Accessory apartments” are allowed as a special exception. These are effectively owner‑occupied short‑term rentals, capped at 800 sq ft, two bedrooms, and 25% of the gross floor area of the principal home; owner occupancy is required. Accessory apartments can be used for short‑term lodging but cannot be operated as separate long‑term rental units.
• In R‑2 and R‑3 Residential Districts: “Bed and breakfast” (rooms rented by residents on premises) is allowed as a special exception, with up to 25% (R‑2) or 50% (R‑3) of total habitable floor area permitted for rental use. Signage is subject to Title 14, Chapter 14. This provides a second STR path for McMinnville investors.
• Traditional short‑term rental models that operate an entire single‑family dwelling as a transient lodging (akin to a hotel/motel) are not listed as permitted uses in residential zones and would typically conflict with the residential character and zoning intent.

Bottom line: Investors can pursue an STR in McMinnville either as an owner‑occupied accessory apartment (R‑1) or as a bed‑and‑breakfast–style room rental (R‑2 or R‑3). Full‑home STR operation (non‑owner‑occupied) is not identified as a permitted or special exception use in the provided zoning code, and thus is likely not allowed under current residential zoning.

How to Start an STR Business in McMinnville

• Confirm zoning:
  • R‑1: Apply for an accessory apartment special exception. This is a legal, owner‑occupied STR path.
  • R‑2 or R‑3: Apply for a bed‑and‑breakfast special exception to rent rooms by residents on premises.
• Submit required approvals:
  • Submit to the Board of Zoning Appeals (BZA) for the special exception. Include site plan and floor plan per Section 14‑602.1, plus any narrative addressing off‑street parking, access, and neighborhood compatibility.
• Secure building permits and certificate of occupancy:
  • Ensure compliance with building and housing codes. Confirm the property’s existing certificate of occupancy and obtain any updates required by the STR use. A plot plan and site plan are required for developments needing building permits.
• Design for compliance:
  • Off‑street parking: R‑1 accessory apartments require two additional spaces; bed‑and‑breakfast requires three for the residence plus one per rented room. Spaces cannot be located in the front yard for bed‑and‑breakfast.
  • Setbacks and accessory building limits apply; keep structures within height and yard restrictions.
  • Bed‑and‑breakfast signage is governed by Title 14, Chapter 14 (not included in the provided PDF).
• Operate legally:
  • Owner occupancy is mandatory for R‑1 accessory apartments.
  • For bed‑and‑breakfast in R‑2/R‑3, ensure the floor area used does not exceed allowed percentages (25% in R‑2; 50% in R‑3).
  • Observe citywide general zoning provisions, including one principal building per lot in residential districts and street frontage requirements.

Required Documents, Permits, Licenses, and Guidelines

• Zoning Special Exception (Board of Zoning Appeals):
  • Application for special exception (accessory apartment or bed‑and‑breakfast).
  • Site plan and floor plan per Section 14‑602.1; development standards per Section 14‑602.2.
  • For accessory apartments: full plan submission; must meet owner‑occupancy, floor‑area caps, bedroom limits, additional parking, and housing/building code compliance.
  • For bed‑and‑breakfast: full plan submission; must meet floor‑area limits, parking requirements, and signage standards in Title 14, Chapter 14.
• Building Permit and Certificate of Occupancy:
  • Building permits required prior to commencement of certain types of construction (Section 14‑703).
  • Certificate of occupancy required (Section 14‑706).
  • Plot plan required (Section 14‑704); site plan required (Section 14‑705).
• Business License and State Sales Tax:
  • The zoning code does not specify a city business license for STRs; however, Tennessee law typically requires a business privilege license and sales tax registration for transient lodging. Confirm local business licensing requirements with the city.
• Compliance Documents:
  • Off‑street parking plan and layout meeting Section 14‑301 design requirements (dimensions, surfacing, drainage, lighting).
  • Access control compliance (Section 14‑302), including driveway width and number limits.
• State and Federal Considerations:
  • Tennessee Department of Revenue: sales tax and business tax registration for transient accommodations (verify with the Department).
  • Americans with Disabilities Act (ADA) for accessibility where applicable.
  • Tennessee Department of Human Services: minimum standards for any childcare uses if applicable (adjacent bed‑and‑breakfast context in code).

Specific Regulations (City, County, and State)

• City Zoning (McMinnville Official Zoning Code):
  • Accessory apartments (R‑1): special exception only; one per single‑family dwelling; within or connected to the principal dwelling; ≤25% of gross floor area; ≤800 sq ft; ≤2 bedrooms; owner‑occupied; two additional off‑street parking spaces; all exterior entrances from rear or side; compliance with housing and building codes.
  • Bed‑and‑breakfast (R‑2 and R‑3): special exception; floor area used for rental rooms ≤25% (R‑2) or ≤50% (R‑3) of total habitable floor area; three off‑street spaces for the residence plus one per rented room; required additional parking cannot be in the front yard; signage governed by Title 14, Chapter 14.
  • Multi‑family dwellings and apartments: permitted with application and site plan approval (Section 14‑602) and adherence to development standards (Section 14‑602.2). These are not typically considered STRs.
  • Parking requirements:
    • Accessory apartment: two additional spaces beyond the principal dwelling.
    • Bed‑and‑breakfast: three spaces for the principal dwelling plus one per rented room; front-yard parking prohibited for the additional spaces.
    • Central Commercial District (C‑1): Section 14‑301 does not apply to buildings/uses in C‑1; any off‑street parking provided must meet design requirements.
  • General provisions:
    • One principal building per lot in residential districts (Section 14‑205.3).
    • Off‑street parking design standards (Section 14‑301.5): minimum stall size 9×19 ft; paved for >5 vehicles; no backing onto public streets for non‑one‑ and two‑family residential; lighting arranged to prevent direct glare; landscaping strips for larger lots.
    • Access control (Section 14‑302): limits on driveway widths and counts; minimum distance between driveways and intersections.
    • Plot plan (Section 14‑704) and site plan (Section 14‑705) required when building permits are needed.
    • Certificate of occupancy required (Section 14‑706).
• County (Warren County):
  • The provided zoning PDF pertains to the City of McMinnville; county regulations are not included and must be verified separately.
• State (Tennessee):
  • Transient lodging is typically subject to state sales tax and business tax. Consult the Tennessee Department of Revenue and local authorities for licensing and tax obligations.
  • ADA accessibility requirements may apply depending on the property and operation.
  • If any childcare is offered on site or adjacent to the STR (e.g., daycare home), Tennessee Department of Human Services standards apply.

Contact Information (Local Authority in Charge of STRs)

• City of McMinnville Planning and Zoning:
  • Phone: Not provided in the zoning code.
  • Email: Not provided in the zoning code.
  • Website: Not provided in the zoning code.
• Board of Zoning Appeals (BZA):
  • Handles special exception approvals for accessory apartments and bed‑and‑breakfast establishments. Contact the McMinnville Planning/Zoning office for meeting schedules, application deadlines, and procedures.
• Building Department:
  • Responsible for building permits, plot plans, site plans, and certificates of occupancy. Coordinate directly with the Building Inspector for application review and inspection.
• Tennessee Department of Revenue:
  • Business tax and sales tax registration for transient lodging. Consult their official site for registration and filing requirements.

Source Pages (Links)

• McMinnville Zoning Code (PDF): cms2.revize.com/revize/mcminnville/McMinnville%20Zoning%20Code_Current.pdf

Note: State-level licensing, taxation, and disability accessibility requirements are not included in the zoning PDF and must be confirmed with the appropriate state agencies and local authorities.