Short-term rental rules · Memphis, Tennessee
Short-term rentals in Memphis, explained properly.
Memphis requires a short-term rental permit, obtained through the Division of Planning and Development's Short-term Rental Registry, to operate or advertise a short-term rental, under Ordinance 5856 (Memphis Code Chapter 5-44), effective July 1, 2023. Owner-occupied and non-owner-occupied rentals are both allowed with no permit cap; each unit can have up to three sleeping rooms, stays must be at least 24 hours, and the permit costs $300 to apply and $150 a year to renew, plus city and county business licenses. Owners need $1 million in insurance and a responsible party within 50 miles. Guests pay 18.75% in percentage taxes (7% state sales, 2.75% local sales, 4% city and 5% county occupancy) plus a $2 per room per night assessment.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Permit required since July 1, 2023 | Hosts need a short-term rental permit to operate or advertise, obtained through the Division of Planning and Development's Short-term Rental Registry (Develop 901 Citizen Portal); the requirement took effect July 1, 2023 under Ordinance 5856. Each unit needs its own permit, the permit number must appear in every listing, and stays of more than 30 continuous days aren't short-term rentals [1] [2] |
| $300 application, $150 renewal | Memphis Code Sec. 5-44-5 sets a $300 non-refundable application fee and a $150 renewal fee. Permits expire 365 days after issuance, and renewal requests are due at least 30 days before expiration. Businesses inside city limits also need $15 City of Memphis and $15 Shelby County business licenses [2] [3] |
| No cap or owner-occupancy requirement | Chapter 5-44 sets no limit on the number of permits and doesn't require the owner to live in the property, so non-owner-occupied rentals are allowed; each unit needs its own permit [2] |
| Three sleeping rooms, 24-hour minimum, renter 18+ | A short-term rental is a dwelling unit with no more than three sleeping rooms. Owners may not take payment for stays shorter than 24 hours, and the principal renter must be at least 18 [2] |
| $1 million insurance and a local responsible party | Applicants must show fire, hazard and liability insurance of at least $1,000,000 per occurrence and name a responsible party within 50 miles who will come to the property to respond to complaints. The owner or a designee must answer calls 24 hours a day during every stay, and their name and number must be posted in the unit [2] |
| Suspension and revocation | If the responsible party fails to respond to alleged violations, the city can suspend the permit for up to 30 days after a show-cause notice. The permit is revoked and short-term rental use prohibited after three separate court-found violations caused by the rental. Chapter 5-44 sets no per-day fine; the $50-a-day figure reported elsewhere wasn't found in the code [2] |
| 18.75% tax plus $2 per room per night | 7% Tennessee sales tax, 2.75% Memphis local sales tax, 4% City of Memphis short-term room occupancy tax and 5% Shelby County room occupancy tax (18.75%), plus a $2.00 per paid occupied room night assessment set in Memphis Code Sec. 5-44-4 and filed on the city's short-term room occupancy return by the 20th. Since July 1, 2025, state law makes the first 30 days of any short-term rental stay subject to local occupancy tax. Platforms with a voluntary collection agreement with the city collect and remit occupancy and sales taxes on their bookings; otherwise the owner does [4] [5] [6] [7] [8] [2] |
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We checked the Division of Planning and Development STR Registry page, Memphis Code Chapter 5-44 (Ordinance 5856, on Municode) in a browser, the City of Memphis licenses page and short-term room occupancy tax form, Shelby County's room occupancy tax page, the Tennessee Department of Revenue notices and 2026 council STR documents. Watch City Council agendas for follow-up to the 2026 STR public-safety resolution, which could lead to ordinance amendments. Unincorporated Shelby County has its own permit.
A March 2026 City Council resolution asked the administration to strengthen STR monitoring and enforcement and report back with any ordinance amendments. That led to Ordinance 5980, which would amend the STR ordinance's Compliance section to set out enforcement for rentals reported as a public nuisance. It passed second reading on August 18, 2026 and was listed for third and final reading on September 15, 2026 after being held on September 1; we haven't confirmed the outcome of that vote.
Tennessee Public Chapter 364 (2025) makes the first 30 days of occupancy in a short-term rental unit subject to local occupancy tax regardless of the overall length of stay.
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.