Wilson County Short-Term Rental Rules: A 2026 Overview

Short-term rentals — Airbnb, VRBO, Booking.com, direct-listing STRs — have become a meaningful piece of the Middle Tennessee housing landscape over the past decade. For buyers considering an investment property in Wilson County, or for owners exploring whether to list their primary residence occasionally, the rules aren't uniform across the county. Each city sets its own, and unincorporated areas operate under county rules separately.

Important disclaimer: Short-term rental regulations change frequently. This guide is an overview, not legal advice. Always verify current rules directly with the specific city code or county office before operating.

The Short Answer

STR rules vary by jurisdiction within Wilson County. Lebanon, Mt. Juliet, Watertown, Green Hill, and unincorporated Wilson County each have their own regulations. For any specific property, verify the current rules with the city or county office before making an offer where STR income is part of your purchase math, before listing on any STR platform, or before structuring any ongoing STR business plan.

Why STR Rules Matter for Buyers

If you're considering a Wilson County property as an STR investment, regulation is often the single biggest make-or-break factor. Key scenarios:

• Property in a zone where STRs aren't allowed: your investment thesis doesn't work
• Owner-occupied-only rules: you can't live elsewhere and operate as a pure investment rental
• Permit cap reached: STRs may be permitted in principle but capped in practice
• HOA restrictions: separate from city/county rules and separately enforceable

The consistent rule: verify at the jurisdiction level for the specific address before committing.

How STR Regulation Works in Tennessee

At the state level, Tennessee's Short Term Rental Unit Act establishes baseline provisions for how cities can regulate STRs. Cities generally regulate through: permit or registration requirements, zoning restrictions (allowed in some zones, prohibited in others), occupancy limits, owner-occupancy requirements, annual inspection requirements, permit caps, and enforcement mechanisms.

Source: Tennessee state law; specific city and county codes. Retrieved 2026-04-18. Verify current rules at each jurisdiction.

Wilson County (Unincorporated) STR Rules

STRs in unincorporated Wilson County (Gladeville, Norene, Statesville, most of the Old Hickory Lake Wilson side, etc.) operate under Wilson County government rules.

For current unincorporated Wilson County STR rules, consult:

• Wilson County Government — wilsoncountytn.gov
• Wilson County Planning and Zoning
• Wilson County Codes Enforcement

Unincorporated areas tend to have many HOA-governed subdivisions. Private covenants can be more restrictive than county code and are separately enforceable. Read both the county zoning overlay and the subdivision CC&Rs before committing.

City of Mt. Juliet STR Rules

Mt. Juliet regulates STRs through its municipal code, addressing zoning, registration, occupancy limits, owner-occupied vs. investor distinctions, and any permit caps.

For current Mt. Juliet STR rules, consult: cityofmtjuliet.org and the Mt. Juliet Planning and Zoning Office.

Mt. Juliet's proximity to BNA and Nashville makes it a demand-heavy STR market on paper — which is exactly why the city has revisited its STR framework multiple times as the market has grown. Any pro-forma built on prior rules can be invalidated by subsequent code change.

City of Lebanon STR Rules

For current Lebanon STR rules, consult: lebanontn.org and Lebanon Planning and Zoning. Lebanon's mix of historic Public Square properties and newer residential subdivisions means the same city can treat STRs in different zones very differently.

City of Watertown STR Rules

Watertown's historic square and tourism economy (antique shopping, Tennessee Central Railway excursions) make it a potentially interesting STR market. Consult: watertowntn.org for current rules.

City of Green Hill STR Rules

As Wilson County's newest incorporated city (2021), Green Hill is still building out its ordinance structure. Verify directly with the City of Green Hill for current STR rules.

Taxes and Lodging Tax

Tennessee STR operators generally owe: Tennessee state sales tax (7%), local sales tax, and potentially a local occupancy/hotel-motel tax. Federal income tax applies to STR income. Platforms like Airbnb and VRBO now collect and remit some taxes automatically in most Tennessee jurisdictions, but operator responsibility for compliance rests with the property owner. Consult a CPA familiar with Tennessee STR taxation before launching.

Source: Tennessee Department of Revenue. Retrieved 2026-04-18.

HOA and Deed Restriction Considerations

Many Wilson County subdivisions — especially newer Mt. Juliet, Green Hill, and Lebanon neighborhoods — are governed by HOAs with private deed covenants that can restrict or prohibit STRs independent of what the city or county allows. Common HOA-level restrictions: outright prohibition (often any rental under 30 or 90 days), minimum lease terms (6 or 12 months), owner-occupancy requirements.

HOA documents are public records recorded with the Wilson County Register of Deeds. Read them before buying. Many Wilson County HOAs have amended CC&Rs over recent years specifically to restrict STRs.

What's Changed in 2025–2026

• Tightening in growth-pressure areas. Cities across Middle Tennessee have generally moved toward more regulation, not less, as STR density has increased.
• HOA amendment activity. Several Wilson County HOAs have amended CC&Rs to restrict STRs in response to neighborhood concerns.
• Platform tax collection is broader. Airbnb and VRBO now collect more taxes automatically, though operator responsibility remains.
• Insurance underwriting tightening. Several carriers have pulled back on coverage for STR-use properties, requiring a commercial or STR-specific policy.

Frequently Asked Questions

Are short-term rentals allowed in Wilson County? Rules vary by jurisdiction. Lebanon, Mt. Juliet, Watertown, Green Hill, and unincorporated Wilson County each have their own regulations. Always verify current rules for your specific property's jurisdiction.

Can I run an Airbnb in Mt. Juliet? Verify with the City of Mt. Juliet Planning and Zoning Office. Specific zones, permit requirements, owner-occupancy rules, and any caps all apply.

Does my HOA affect my ability to run an STR? Often yes. HOA CC&Rs may prohibit STRs even in areas where the city or county allows them. Review HOA documents before assuming city permission is enough.

What taxes do I owe on STR income? Tennessee state sales tax, local sales tax, and often a local occupancy tax apply to lodging charges. Federal income tax applies to STR income. Confirm your full obligations with a CPA.

Do STR rules change often? Yes. Middle Tennessee STR rules have tightened in several jurisdictions over the past decade. Build STR plans that can tolerate regulatory evolution.

A Local's Take

Short-term rentals are the area of Wilson County real estate where the rules matter most and change most often. This guide deliberately avoids specific rate, permit, or cap numbers because they can be outdated within a quarter — and the cost of acting on outdated rules is real.

The core framing for clients considering an STR purchase:

1. Verify the current regulation at the jurisdiction level for the specific address. The city planning office or county codes office is the only authoritative source.
2. Read the HOA docs before the option period closes. City approval doesn't override HOA restrictions.
3. Factor regulatory risk into your underwriting. Build a pro-forma that still pencils on a longer minimum-stay requirement or a permit cap.
4. Use real demand data (AirDNA, Airbtics, or similar) rather than assumed occupancy rates.
5. Get insurance quotes specifically for STR use. A standard homeowner policy often will not cover STR claims.
6. Consult a CPA for Tennessee-specific STR tax planning.

For buyers whose thesis depends on STR income, that due diligence is the foundation of whether the investment works at all.

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Written by Jacob Armbrester, Real Estate Broker with Compass. Published 2026-05-04. Last updated 2026-04-19.