STR Regulation Tracker: What Changed in Miami, Nashville, and Austin

STR Regulation Changes — March 2026

The short-term rental regulatory landscape continues to evolve rapidly. Three of the most popular STR markets have made significant changes that affect how investors operate.

Miami-Dade County

Miami has implemented new registration requirements:

Annual registration fee increased to $500 per unit (up from $100)

90-day minimum stay requirement in certain residential zones

Host must be primary resident for units in single-family zoning

Fines doubled for unregistered operators — now $20,000 per violation

The Miami changes primarily affect investors operating STRs in residential neighborhoods. Properties in mixed-use and commercial zones are largely unaffected.

Nashville

Nashville has taken one of the hardest lines against non-owner-occupied STRs:

Phase-out of non-owner-occupied permits in residential zones continues

No new non-owner permits being issued in most neighborhoods

Existing permits are non-transferable — cannot be sold with the property

Owner-occupied STRs remain allowed with proper permitting

For investors, this means Nashville STR properties must be analyzed assuming the permit dies with the current owner. This significantly impacts exit strategy and valuation.

Austin

Austin has taken a more balanced approach:

Type 2 STR licenses (non-owner-occupied) remain available but capped

New density limits — maximum 5% of residential units per census tract can be STRs

Noise and parking enforcement increased with dedicated complaint hotline

Revenue reporting required — hosts must report annual STR income to the city

Impact on DSCR Underwriting

These regulatory changes directly affect how lenders evaluate STR income for DSCR loans:

Lenders are discounting STR income more heavily in regulated markets

Some lenders now require long-term rent comps as the primary DSCR qualification, with STR income as a bonus

Permit transferability is becoming a factor in property valuation

What We Recommend

Before buying an STR investment property, verify the current and pending regulations in your target market. We maintain a regulation tracker across all 31 states where we lend — ask your 818 Capital advisor for the latest.