Nashville's North Shore — one of Middle Tennessee's fastest-growing counties — is navigating a pivotal moment in development fee policy. Here's what every developer needs to know before building here.
Sumner County is home to an estimated 215,071 residents as of 2025 — the 8th most populous county in Tennessee — growing at +1.6% annually and up more than 35% since the 2010 census. Anchored by Old Hickory Lake and positioned northeast of Nashville along I-65 and SR-109, the county has become one of the region's most active residential development markets.
The county contains approximately 97,457 housing units, with median sold home prices reaching $442,000 in late 2025 — up 6.3% year-over-year. The average single-family home spans roughly 2,000 square feet, a benchmark that matters directly for development cost planning, since Sumner County's Adequate Facilities Tax is levied on a per-square-foot basis.
Sumner County's development fee picture is rapidly evolving. The county's Adequate Facilities Tax (AFT) of $0.70 per square foot — established by Private Act in 1999 and earmarked exclusively for school construction — is currently the only county-level fee on new residential construction. However, the City of Hendersonville is actively moving toward adopting a flat city impact fee (estimated around $5,000 per unit), and Gallatin's own bid for impact fee authority was defeated in the 2025 legislative session. Developers should monitor both municipalities closely.
Recent coverage on Sumner County's development fees, growth funding battles, and housing market impact.
After years of study and workshops, Hendersonville's Board of Mayor and Aldermen moved closer to adopting a city impact fee on new residential construction — with aldermen indicating a flat fee near $5,000 per unit. Unlike neighboring Gallatin, Hendersonville does not need state legislative approval to enact the fee; the authority already exists within its city charter.
Read Full ArticleGallatin's effort to win state legislative approval for its own impact fee — a measure moving through the General Assembly in early 2025 — failed to pass. The bill's defeat leaves Gallatin continuing to rely on the county-wide Adequate Facilities Tax as the sole development fee mechanism for new residential construction within city limits.
Read Full ArticleSumner County commissioners warned that rapidly growing cities are annexing unincorporated county land and rezoning it for high-density residential development — leaving the county on the hook to fund new schools without a seat at the table. Commissioner Jeremy Mansfield urged lawmakers to authorize county-level impact fees and require county approval before cities annex and rezone rural land.
Read Full ArticleBuilding a new single-family home in Sumner County triggers the county's Adequate Facilities Tax (AFT) of $0.70 per square foot — established by Private Act of 1999 and earmarked exclusively for new school construction. This fee is collected by the county at the time of building permit issuance, regardless of whether the project is within an incorporated city or unincorporated county land. No additional city-level impact fee currently exists, though Hendersonville is actively pursuing one. The table below reflects current rates in effect as of 2025.
* The Sumner County AFT applies to all new residential and industrial construction, regardless of city or unincorporated location. Commercial development is charged at $0.40/sq ft. The City of Hendersonville is reviewing a proposed flat impact fee of approximately $5,000 per residential unit; no ordinance has been adopted as of early 2026. Gallatin's 2025 legislative bid for impact fee authority failed. Building permit fees, plat review, and utility connection charges are separate and not included. Sources: Forward Sumner · Hendersonville Standard · TN Comptroller AFT Limited Review (July 2008). Always verify current rates with the Sumner County Building Codes Department before finalizing project pro formas.
Key incorporated municipalities in Sumner County and their current development fee environment.
Hendersonville is Sumner County's largest city, situated along Old Hickory Lake roughly 18 miles northeast of downtown Nashville. All new residential construction is subject to the county AFT of $0.70/sq ft. The city is actively pursuing its own impact fee — estimated at ~$5,000 flat per unit — under charter authority that requires no state approval. If adopted, Hendersonville would become the first Sumner County municipality with a standalone city impact fee.
Gallatin is Sumner County's seat of government and one of its most active new construction markets, with major communities like Kennesaw Farms, Fairvue Plantation, and Bledsoe Springs. All new residential development is subject to the county AFT of $0.70/sq ft — collected at the county level. Gallatin's 2025 effort to win state authority for its own city impact fee was defeated in the General Assembly, leaving the county AFT as the only fee on new homes within city limits.
Portland sits in the northern reach of Sumner County near the Robertson County line, offering some of the most affordable new construction in the county. New residential development is subject to the county AFT of $0.70/sq ft, with no additional city-level impact fee in place. Portland's lower land costs and straightforward single-layer fee structure make it an attractive market for entry-level and workforce housing developers.
Sumner County's development fee environment is at an inflection point — with Hendersonville pursuing a new city impact fee, Gallatin's legislative bid defeated, and the county itself seeking expanded authority from the state. Our consultants track every development in Tennessee's fee landscape and can help you accurately model costs, understand which fees apply to your specific site, and avoid surprises from mile to permit.