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Commission approves expansion of detached accessory dwelling units with conditions and restrictions on short-term rentals
Summary
The commission approved a text amendment to expand detached accessory dwelling units (DADUs) across additional areas, increase living-space caps tied to lot size, clarify height measurement, and prohibit owner-occupied short-term rentals for new single-family-zone DADUs; the requirement that one unit be owner-occupied was retained.
The Planning Commission voted to approve a text amendment expanding where detached accessory dwelling units (DADUs) are allowed, clarifying size and height limits, and prohibiting owner-occupied short-term rental (STR) permits for new DADUs in single-family zones.
Dustin Shane, staff planner, said the change is part of the housing and infrastructure study and would allow DADUs beyond the current overlays, increase living-space caps while maintaining footprint, height and proportionality limits, and keep the requirement that one dwelling on a property be owner-occupied. The substitute replaces a footprint-based limit with a living-space cap intended to keep DADUs subordinate to principal structures and to prevent oversized accessory buildings.
Shane cited permitting experience from two existing overlays — North Nashville and East Nashville — where only a small percentage of eligible parcels have applied for DADU permits, and said infrastructure impacts are minimal because each permit triggers parcel-level water, sewer and stormwater review.
The adopted substitute sets living-space caps that scale with parcel size (for example, higher caps on lots larger than 10,000 square feet while retaining a rule that a DADU cannot exceed the principal structure's size). The ordinance retains the longstanding requirement that one of the dwelling units be owner-occupied; staff and several commissioners cited peer-city practice and concerns about speculation if DADUs could be separately owned or operated as short-term rentals.
Commissioner Smith said he supported the expansion overall but flagged the owner-occupancy rule as a continuing concern; Councilman Horton urged the commission to consider the homeownership benefits of DADUs but also acknowledged the risk of speculation if ownership rules were loosened.
A motion to adopt the substitute passed and the item will move to Metro Council with the commission's recommendation.
