Yes, but check the permit before you buy. In Nashville and Davidson County, new non-owner-occupied short-term rental permits are not issued in AR2A, R, RS, or RM zones. Existing permits in those zones cannot be transferred when the home is sold. Owner-occupied permits are for owners who live on the property. For the loan, Fannie Mae can count short-term rental income only on a one-unit investment property that is legally permitted, and it uses 50% of the market rent. Many investors use DSCR loans instead, and terms vary by lender.
Nashville is one of the busiest short-term rental markets in the South. That is why the permit question comes first. A lender cannot fix a zoning problem, and many will not count rent from a rental that is not legal.
| Permit type | Who it is for | Key rule |
|---|---|---|
| Owner-occupied | An owner who lives on the property (a natural person, not an LLC) | Proof that the home is your primary residence is required |
| Not owner-occupied | Owners who do not live there | New permits only in certain mixed-use, office, commercial, and downtown zones; not in AR2A, R, RS, or RM zones |
| Existing permit on a home you buy | Buyer of a permitted home | In AR2A, R, RS, and RM zones, existing permits are not transferable when the property is sold |
Outside Davidson County, such as in Williamson County cities, check with that city or county. Rules are different in each place.
| Fannie Mae (conventional) | DSCR loan (non-QM, typical) | |
|---|---|---|
| Property | One-unit investment property only; must be legally permitted | Investment property; legal use required by many lenders |
| Rent used | 50% of market rent (the other 50% covers vacancy and upkeep) | Many lenders use past booking income or a market estimate |
| Your personal income | Still counted (DTI) | Often not used; the property's rent qualifies |
Terms vary by lender. Non-QM loans are not set by a government agency. Each lender writes its own rules for credit, down payment, rates, and paperwork, and those rules change often. Always ask for the lender’s current guidelines in writing.
Want a second home you rent out sometimes? That is a different rule. See second home vs. investment property.
Only if the property can get a permit. New non-owner-occupied permits are not issued in AR2A, R, RS, or RM zones.
In AR2A, R, RS, and RM zones, Metro says existing non-owner-occupied permits are not transferable when the home is sold.
No. Metro says owner-occupied permits are only for natural persons who live on the property.
On a legally permitted one-unit investment property, yes. It counts 50% of the market rent.
Many DSCR lenders allow it. Each lender sets its own rules for how STR income is counted. Terms vary by lender.
Each city and county has its own rules. Check with them before you buy.
Looking at a short-term rental in Nashville? Check the permit, then let's look at the loan. Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Checked October 11, 2026. Permit and zoning rules can change. Confirm the property's zoning and permit status with Metro Codes before you sign a contract. This is not a loan offer.
