Monteagle, Tennessee

Monteagle has no STR-specific ordinance, permit program, or registration requirement in its municipal code, zoning ordinance, or town forms (which list building, beer, business/vendor, sign, and mobile-food permits, but no short-term-rental permit). As a result, short-term rentals operate under general residential zoning rules and the protections of Tennessee’s statewide Short-Term Rental Unit Act, which bars municipalities from banning STRs outright and grandfathers many existing units.

There is no evidence of an owner-occupancy, primary-residence, or maximum-nights requirement at the town level. Operators should still expect to need a general business or vendor permit and to collect and remit Tennessee’s state sales tax (7% state plus roughly 2.25% Grundy/Marion County local sales tax) along with the applicable local hotel and occupancy tax.

The Monteagle Municipal Code levies a confirmed municipal hotel and motel privilege tax of 3% on room occupancy, established under the Private Acts of 1984 and deposited to the town’s general fund. Following Tennessee’s 2021 redefinition of ‘hotel’ to include short-term rental units, that 3% tax applies to STR stays; Tennessee law caps municipal hotel and motel tax at 4%, so Monteagle’s rate sits comfortably within that limit.

Enforcement is rated minimal given the absence of a dedicated regulatory framework, though operators should still confirm county trustee obligations and current requirements directly with town hall before purchasing, since plateau towns in this region continue to consider adopting STR-specific rules.