Norris, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

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

Yes, short-term rentals are allowed in Norris, Tennessee, but they are subject to strict regulation and zoning restrictions. The city has implemented a comprehensive regulatory framework that allows STRs while limiting their impact on residential neighborhoods. As of the latest regulations, short-term rentals are only permitted in commercial zones (C-1, C-2), professional districts (P-1), and scenic/highway districts (S-1). They are prohibited in residential zones (R-1, R-2, and FAR zones), including the historic original residential areas of the town.

What do Airbnb hosts actually earn in Norris?

Norris hosts earn a median $32,064/year with $335 ADR and 44% occupancy.

Top performers pull in $49,431+ per year.

See the full Norris market breakdown

How to Start a Short-Term Rental Business in Norris, TN

Starting a short-term rental business in Norris requires navigating a multi-step regulatory process. Here's a comprehensive guide:

Step 1: Verify Zoning Compliance

Before proceeding with any other steps, confirm your property is located in an approved zoning district. STRs are only permitted in:

C-1 Commercial District
C-2 Commercial District
P-1 Professional and Civic District
S-1 Scenic and Highway District

STRs are explicitly prohibited in:

R-1 Residential District
R-2 Residential District
FAR (Forestry/Agriculture/Residential) Zone

Step 2: Obtain Required Permits and Licenses

Apply for City STR Permit through the Office of the City Manager
Obtain Anderson County Business License
Obtain Norris City Business License
Register for Hotel-Motel Tax (Tennessee State Tax)

Step 3: Designate a Local Agent

You must designate a Short-Term Rental Agent who:

Is over 21 years old
Lives within two hours travel time of the property
Can respond to issues within 2 hours of notification
Meets all local and state regulatory requirements

Step 4: Property Preparation

Ensure property meets all housing, building, health, and safety codes
Provide adequate on-site parking (no parking on vegetated areas)
Limit to maximum 3 sleeping rooms
Post required information within the unit

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements

Short-Term Rental Permit Application must include:

Owner and agent contact information (name, address, phone, email)
Business license number
Hotel-Motel tax registration number
Concept plan showing property layout, buildings, parking, and guest access
Narrative description including:
- Area available for rental
- Number of sleeping rooms (maximum 3)
- Maximum occupancy calculation
- Days of operation
- Trash management plan
Proof of insurance on the dwelling unit

Fees:

Owner-occupied STR: $75 application fee
Non-owner occupied STR: $125 application fee
Annual renewal and inspection: $100
Reinstatement fee (if suspended): $50

State and County Requirements

Business Licenses:

Anderson County Business License
Norris City Business License

Tax Registration:

Hotel-Motel Occupancy Tax Registration (T.C.A. §67-4-1401 et seq.)

Specific Regulations for Short-Term Rentals

Operational Standards

Occupancy Limits:

Maximum 3 sleeping rooms per STR
Maximum occupancy calculated as:
- 2 persons per sleeping room (up to 140 sq ft)
- For rooms over 140 sq ft: area divided by 70 sq ft
Occupancy maximum must be posted conspicuously within the unit
No rentals for periods less than 24 hours

Property Requirements:

Only primary or secondary dwelling units permitted (no garages, barns, or sheds)
Must comply with all applicable zoning, housing, building, health, electrical, gas, plumbing, and life safety codes
Adequate on-site parking as determined by the City
No parking on vegetated areas
Name and phone number of owner or agent posted within unit

Conduct Requirements:

Occupants must abide by all applicable noise restrictions
Compliance with waste management provisions
Agent must respond to issues within 2 hours
No compensation permitted for periods less than 24 hours

Tax Obligations

Required Tax Collection and Remittance:

Hotel-Motel Tax (state and local)
Sales Tax (if applicable)
All other taxes required by state law and Norris City Code

Enforcement and Penalties

Violations and Enforcement:

Civil penalty: $50 per violation
Each day of violation constitutes separate offense
Three documented violations within 12-month period can result in permit revocation
Permits are non-transferable to new locations or owners

Grandfathered Properties: Properties operating as STRs before the ordinance may continue as "legacy properties" but must still obtain permits and comply with generally applicable laws. Legacy status can be lost if:

Property is sold or transferred
Property ceases STR use for 30+ continuous months
Three or more violations of generally applicable laws

Contact Information for Local Authority

Primary Contact:

Office of the City Manager
Location: Norris City Hall
Address: Norris, TN 37728
Phone: [Contact city hall for current number]
Email: [Contact city hall for current email]

Key Departments:

City Manager's Office: STR permit applications and enforcement
Building Inspector: Code compliance inspections
Fire Marshal: Safety code compliance
Planning Commission: Zoning compliance and updates

Additional Contacts:

Anderson County Clerk: Business license applications
Anderson County Health Department: Health permits and inspections
Tennessee Department of Revenue: State tax registration

Links to Source Pages

Primary Regulatory Documents

Norris City Ordinance 624 - Complete STR regulations
- www.wate.com/wp-content/uploads/sites/42/2022/01/ordinance_624_short_term_rentals_10-11-21.pdf
Original STR Ordinance News Article - Implementation details and city council decisions
- mycouriernews.com/articles/2022/03/5617/norris-council-approves-short-term-rental-measure
Zoning Restrictions Article - Commercial zone restrictions
- mycouriernews.com/articles/2022/11/6422/norris-council-votes-for-zoning-restrictions-on-short-term-rentals

Legal Precedent and Context

Tennessee Supreme Court Ruling - STR legality in HOA communities
- www.knoxnews.com/story/news/local/2024/03/05/tennessee-town-airbnb-dispute-ends-with-short-term-rental-ruling/72842624007/
HOA Legal Analysis - Community association STR regulations
- www.cedarmanagementgroup.com/decision-on-vacation-rentals/

Important Note for Investors: The regulatory landscape for short-term rentals in Norris is actively evolving. The city has demonstrated a willingness to modify regulations as needed, as evidenced by the subsequent zoning restrictions implemented after the initial ordinance. Potential investors should verify current regulations with the City Manager's office before making property acquisition decisions, as zoning restrictions significantly limit available properties for STR use.

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Ask the AI Advisor about Norris

Norris is a small, historic city in Anderson County in eastern Tennessee, situated on the Clinch River about 25 miles north of Knoxville. With a population of roughly 1,500 residents, it has the feel of a quiet, tree-lined community that retains a strong sense of its 1930s origins, when it was constructed as one of the earliest planned communities in the United States to house workers building a major federal dam. Today, the town is best known for its namesake reservoir and surrounding state park, and it functions as a peaceful gateway to outdoor recreation in the Cumberland foothills, with Knoxville's urban amenities and McGhee Tyson Airport both within about a half hour's drive to the south.

Just outside the town limits, Norris Dam State Park wraps a large portion of the reservoir and the slopes above it, offering hiking trails, picnic areas, a swimming pool, cabins, and campgrounds. The park is only a few minutes from the city center, and its trails wind along ridges that overlook the water, making it a convenient year-round draw for visitors interested in fishing, mountain biking, or simply stretching their legs without a long drive. Because the park surrounds much of the lake, it functions almost as a backyard amenity for anyone staying in the area.

The lake itself, Norris Lake, is one of the largest reservoirs in the TVA system and the principal reason most visitors come to the area. Its roughly 800 miles of shoreline curve into narrow forested coves that are popular for boating, houseboating, paddleboarding, and smallmouth bass fishing, and several marinas and public access points are within a short drive of town. In summer, the water draws boaters from across the region, while the surrounding woodlands give the shoreline a calm, uncrowded character compared with more developed lakes further south.

To the north and west, the landscape opens into the broader Cumberland Plateau, where Big South Fork National River and Recreation Area protects a wide swath of gorges, sandstone arches, and the free-flowing Big South Fork of the Cumberland River. The drive from Norris is roughly 90 minutes, putting it within easy reach for a day trip of hiking, horseback riding, or whitewater rafting. The combination of an intimate small-town setting, immediate lake and forest access, and proximity to both Knoxville and the wider Appalachian outdoor scene gives Norris a distinctive appeal as a base for short-term rental guests who want a quieter, nature-oriented stay without sacrificing access to a major regional hub.