Crossville, Tennessee

Crossville is a permissive market for short-term rentals. Short-term rentals are permitted, and the City of Crossville has no STR specific ordinance, so no city permit is required and there is no permit fee or renewal period. There is no owner occupancy requirement, no primary residence requirement and no cap on rental nights at the municipal level. Zoning is unusually light. The city states that it currently only has zoning ordinances pertaining to the airport, floodplains, signs, mobile homes and mobile home parks, and it has no ordinances that specify commercial, industrial, residential or other areas. There are no city parking or density requirements. Enforcement severity is rated minimal. Operations are governed mainly by Tennessee’s statewide Short-Term Rental Unit Act (Public Chapter 972, 2018), which lets local governments create reasonable permitting processes and grandfathers existing rentals. Crossville has not created one. On taxes, Crossville levies an occupancy tax of 3% on transient lodging, including short-term rentals. Since January 1, 2021, marketplaces such as Airbnb and Vrbo collect and remit this occupancy tax, plus state and local sales tax, to the Tennessee Department of Revenue. No recent city STR ordinance has been identified. A 2025 state law caps cumulative municipal occupancy tax growth, with an 8% ceiling within an incorporated county area, but Crossville’s authorized rate remains 3%. The main risk is private restrictions. HOA and POA covenants in resort communities such as Fairfield Glade, and recorded deed restrictions, may prohibit short-term rentals even though the city does not. Investors should also confirm any county level occupancy tax before buying.