Tennessee · Franklin

Franklin

Name: Franklin short-term rental regulations
Creator: RuleGrid
License: https://creativecommons.org/licenses/by/4.0/

city Restricted Needs review · last verified 2026-07-15

Franklin permits short-term vacation rentals (STVRs) but restricts them heavily under two overlapping bodies of law. (1) Business/registration: Franklin Municipal Code Title 13, Chapter 2 'Short Term Vacation Rentals' (created by Ord. No. 2015-06, Sec. I, adopted 6-9-2015; codified current through Supp. No. 30) requires the owner, before operating or advertising, to apply to the Building & Neighborhood Services (BNS) Department to update the property's Certificate of Use and Occupancy; the application must be renewed every 365 days (Sec. 13-214) at a fee of $50.00/year (Appendix A - Comprehensive Fees and Penalties). It caps occupancy at 10 (Sec. 13-211), sets a maximum stay of 21 consecutive days and bars any compensation for occupancy of less than 24 hours (Sec. 13-212), requires a responsible party residing/located within 25 miles who answers calls 24/7 (Secs. 13-203, 13-213), requires $1,000,000.00-per-occurrence liability insurance presented annually (Sec. 13-204), approved UL-217 smoke alarms (Sec. 13-208), and a principal renter at least 21 years old (Sec. 13-210); an STVR is defined as a residential dwelling of not more than 4 sleeping rooms (Sec. 13-201). The City accepts electronic applications only, effective November 7, 2022 (per the City's STVR web page). (2) Zoning: the current Franklin Zoning Ordinance (as published by the City, effective January 13, 2026), Chapter 5 Use-Specific Standards for Principal Uses, subsection 'W. Short-Term Vacation Rentals', additionally requires the lot owner to be a 'permanent occupant' (owner-occupancy), allows a maximum of one STVR per lot, and -- for a lot with a single dwelling and no accessory dwelling -- limits rentals to 113 nights per rolling 12-month period with the owner vacating during each rental (a lot with both a dwelling and an accessory dwelling may owner-occupy one and rent the other). These substantive zoning rules first took effect in the July 1, 2024 zoning ordinance, where the same use was lettered 5.1.4.R; the 2026 recodification relettered it to W (in the current ordinance, subsection R is now 'Multifamily Residential'). STVRs legally permitted before the current zoning rules are grandfathered (FZO 2.2.4, citing T.C.A. Sec. 13-7-602/603) until the property is sold, transferred, or ceases STVR use for 30 continuous months; transfer to a family member preserves grandfathering. Because new non-owner-occupied whole-home STRs are not allowed and owner-occupied single-dwelling STRs face a 113-night annual cap, the practical status is 'restricted.'

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

city Certificate of Use and Occupancy (STVR) application Required

Fee: $50 / annual · Renewal: Every 365 days (annual) · Applies to: Owner of any residential dwelling operated or advertised as a short term vacation rental · official page ↗
city Owner must be permanent occupant of the lot (zoning) Required

Fee: — · Renewal: — · Applies to: All STVRs subject to the Franklin Zoning Ordinance (i.e., not grandfathered) · official page ↗
city Proof of homeowner's fire, hazard and liability insurance ($1,000,000.00 per occurrence) Required

Fee: — · Renewal: Annual · Applies to: STVR owner · official page ↗
city Responsible party within 25 miles (available 24/7) Required

Fee: — · Renewal: — · Applies to: STVR owner · official page ↗
city Approved UL-217 smoke alarms Required

Fee: — · Renewal: — · Applies to: STVR unit · official page ↗
city Post occupancy maximum, responsible-party contact, and certificate of use and occupancy in unit Required

Fee: — · Renewal: — · Applies to: STVR unit · official page ↗
city Written notice to neighbors sharing a common wall or driveway Conditional

Fee: — · Renewal: — · Applies to: STVRs sharing a common wall or common driveway with another property owner · official page ↗
state Tennessee business tax (municipal + state) Conditional

Fee: — · Renewal: Annual · Applies to: Individual vacation-lodging owners once annual taxable gross sales reach $100,000 in a jurisdiction (property management company owes it instead if one is used) · official page ↗

Taxes

Tax	Rate	Administered by	Airbnb remits	Vrbo remits
Tennessee state sales tax	—	—	—	—
Local option sales tax	—	—	—	—
Local occupancy (hotel/motel) tax	—	—	—	—
Tennessee business tax	—	—	—	—

Operating rules

Primary residence: Yes
Min stay (nights): 1
Max nights / year: 113
Max occupancy: Maximum 10 occupants at any one time; simultaneous rental to more than one party under separate contracts is not allowed (Sec. 13-211). An STVR unit contains no more than 4 sleeping rooms (Sec. 13-201).
Zoning-restricted: Yes
Cap on licenses: No citywide numeric cap; maximum one STVR per lot (Zoning subsection W).

Grandfathering: Yes. FZO 2.2.4 (citing T.C.A. Sec. 13-7-602 and 13-7-603): STVRs legally established and issued a permit before the effective date of the current zoning rules remain under the law in place at the time the property was being used as an STVR, until the property is (1) sold, (2) transferred, or (3) ceases being used as an STVR for a period of 30 continuous months. Grandfathering protections continue if ownership changes to a family member (persons related by blood, marriage, civil union, or adoption). CORRECTED from draft: the draft's additional trigger 'cited for 3+ violations' is NOT a 2.2.4 grandfathering-termination condition; the 3-or-more-complaints rule is the separate complaint/revocation process in Municipal Code Sec. 13-216.

Zoning: Current Franklin Zoning Ordinance (effective January 13, 2026), Chapter 5 Use-Specific Standards for Principal Uses, subsection W (Short-Term Vacation Rentals): one STVR per lot; owner must be a permanent occupant; a lot with a dwelling + accessory dwelling may owner-occupy one and rent the other; a lot with a single dwelling (no accessory dwelling) may rent only up to 113 nights per rolling 12 months with the owner vacating during rentals. Signs, advertising, or any other display indicating the dwelling is used as an STVR is prohibited (Municipal Code Sec. 13-206). These substantive rules first took effect in the July 1, 2024 zoning ordinance (then lettered 5.1.4.R).

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Frequently asked questions

Is Airbnb legal in Franklin?

Do I need a license or registration for a short-term rental in Franklin?

Yes — Franklin requires: Certificate of Use and Occupancy (STVR) application; Owner must be permanent occupant of the lot (zoning); Proof of homeowner's fire, hazard and liability insurance ($1,000,000.00 per occurrence). See the requirements checklist for fees, renewal, and official links.

What taxes apply to short-term rentals in Franklin?

Tennessee state sales tax, Local option sales tax, Local occupancy (hotel/motel) tax, Tennessee business tax. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.