More short-term rentals could soon be allowed in a limited area north of the Tennessee River as the Chattanooga City Council on Tuesday approved one of two motions required to take such an action.
The move by the council would extend the short-term vacation rental zone farther into the district represented by Chair Chip Henderson, of Lookout Valley.
The council in May 2023 established regions of the city where short-term rentals are allowed, subject to regulation. A map of the affected areas is referred to as an overlay.
The overlay is largely centered around downtown and the urban core of the city.
Short-term rentals, within the region, are allowed on property zoned for residential use if the rental is operated by an owner who also lives on the property.
Absentee owners, those who don’t live on the property, must have the land zoned for commercial use.
Any property outside the region, regardless of owner type, must be zoned for commercial to be used as a short-term rental.
If approved by the council a second time, the overlay would be extended roughly from Riverside Avenue north of the river to Runyan Drive. The other approximate boundaries of the extended zone would be Pineville and Signal Mountain roads to the east and Highway 27 to the west.
(READ MORE: Hamilton County will again take up prohibition on new vacation rentals)
Henderson, who initiated extending the map, said in a phone interview the move was the result of requests in his district to allow more owner-occupied short-term rentals. He said the area wasn’t initially included because of earlier concerns from residents.
“The Stringers Ridge Neighborhood Association at that time had concerns about the non-owner occupied short-term vacation rentals,” Henderson said. “They’re less concerned about the owner occupied.”
Brad Wardlaw, a resident who operates short-term rentals in Chattanooga, said in a phone interview rentals of all types should be allowed throughout the city.
“If we’re having to get overlays extended for people to do things with the home that they live in as they wish, that should be deemed a violation of property rights,” Wardlaw said.
Henderson said he initially wanted to have such rentals throughout the city, but that motion was voted down by the city council.
However, he said some regulations on private property are appropriate.
“When you buy a piece of property in an R1 neighborhood, there are certain restrictions that are placed on that piece of property,” Henderson said. “We live in a society where we have rules and regulations and those come with the territory.”
Wardlaw was at one point involved in a lawsuit against the city over its regulations on short-term rentals. That lawsuit was withdrawn in December.
Contact Ben Sessoms at bsessoms@timesfreepress.com or 423-757-6354.

