Tennessee
A 2018 state act protects grandfathered units; Nashville caps non-owner-occupied permits by zone.
Regulations
Short-term rental rules, state by state
Short-term rental regulation is set locally in almost every US state, and each jurisdiction sits in one of four positions: preemption of bans, light local regulation, permit caps, or effectively prohibitive. Arizona and Idaho protect operators most; New York City, Denver, Atlanta and Charleston are effectively closed.
Florida
State law preempts newer local bans, but pre-2011 ordinances are grandfathered and vary widely.
Arizona
State law preempts municipal bans; cities may license and regulate but not prohibit.
Texas
No statewide ban; several city ordinances have been narrowed by courts. Unincorporated county land is often unregulated.
California
No state preemption. Permit caps, waiting lists and coastal zone review make California the hardest large state.
Oklahoma
Light regulation overall; Broken Bow and Hochatown have grown into a major cabin market with modest rules.
Pennsylvania
No state framework. Poconos rules vary by township and HOA, sometimes property to property.
Colorado
Strong local control. Resort towns have adopted caps, license classes and higher tax rates.
Utah
State law limits enforcement based on advertising alone; Park City and Summit County regulate by zone.
Missouri
Branson and Table Rock Lake operate with modest rules in an established tourism economy.
Alabama
Gulf Shores and Orange Beach operate established vacation rental economies with registration requirements.
South Carolina
Myrtle Beach and Hilton Head operate established markets; Charleston is among the most restrictive in the Southeast.
North Carolina
A 2021 appellate decision limited registration-based restrictions; coastal markets are well established.
Georgia
Blue Ridge and the North Georgia mountains are established markets; Atlanta requires owner occupancy.
Nevada
Clark County and Las Vegas operate tightly capped licensing; Lake Tahoe's Nevada side varies by jurisdiction.
New York
NYC Local Law 18 ended most short-term rentals in the city; upstate markets are governed locally.
Michigan
Repeated preemption bills have failed; lakeshore townships regulate independently and have tightened.
Hawaii
Each county restricts sharply; Maui and Oahu have moved to eliminate much existing inventory.
Idaho
State law prevents outright local prohibition; McCall, Sun Valley and Coeur d'Alene regulate operationally.
Montana
No restrictive state framework; Whitefish, Bozeman and Big Sky regulate through zoning and permits.
The four regulatory postures
Every jurisdiction falls into roughly one of four positions, and knowing which one you are in tells you most of what you need about the risk.
- State preemption of bans. Arizona and Idaho prevent local governments from prohibiting short-term rentals outright. This is the strongest protection available and it removes the largest single risk.
- Local control, light regulation. Oklahoma, Missouri, Alabama's Gulf Coast and much of rural Texas. Workable, but nothing prevents a future tightening.
- Local control, permit caps. Colorado ski towns, California desert markets, Nevada's Las Vegas metro, Nashville's non-owner-occupied zones. A permit here is a genuine asset because supply is capped, and a property without one may not be able to get one.
- Effectively prohibitive. New York City, Denver, Atlanta and Charleston for non-owner-occupied purchases, and most of Hawaii. These are closed to conventional investment regardless of the numbers.
A permit cap is worth understanding properly, because it cuts both ways. It is a barrier to entry when you are buying and a moat once you are in. Nashville's zoning-restricted non-owner-occupied permits protect existing operators from exactly the supply growth that compresses rates in unregulated markets.
The verification sequence
We run the same six steps on every property before an offer goes out, in every state.
- Zoning designation for the specific parcel, not the neighborhood.
- Whether short-term rental is an allowed use in that zone, and whether a permit is required.
- Whether permits are capped, waitlisted, or transferable on sale.
- The homeowner association or condominium declaration, read in full.
- Lodging and occupancy tax registration obligations, and which taxes the platform collects.
- Written confirmation from the jurisdiction, retained.
The homeowner association step is the one buyers skip most often and the one that most often kills a deal after closing. A private covenant binds independently of any municipal rule, and state preemption statutes in Arizona and Idaho do not override it.
Frequently asked questions
Which states are best for short-term rental investing?
On regulation alone, Arizona and Idaho lead because state law prevents local governments from banning short-term rentals outright. Tennessee, Oklahoma, Missouri and much of Florida and Texas are also workable, though for different structural reasons.
Which states are hardest for short-term rental investors?
Hawaii, California and Nevada's Las Vegas metro, plus specific cities including New York City, Denver, Atlanta and Charleston, where non-owner-occupied short-term rentals are effectively excluded.
Do state preemption laws override homeowner association rules?
No. Private covenants bind independently. Arizona and Idaho preempt municipal bans but do not affect an HOA or condominium declaration, which has to be read separately for every purchase.
What should I verify before buying a short-term rental?
Parcel zoning, whether STR is an allowed use, whether permits are capped or transferable, the full HOA or condo declaration, lodging tax registration obligations, and written confirmation from the jurisdiction that you retain.
Tell us what you are trying to do
We screen roughly a thousand deals a week and reject about 98%. A thirty minute call tells you whether this fits.