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Tennessee · Memphis

Memphis

city Allowed with registration Needs review · last verified 2026-07-15

Short-term rentals are legal in Memphis but require a Short Term Rental permit. STRs are governed by the Memphis Short Term Rental Ordinance, originally enacted as Ordinance No. 5631 (passed 2016 — 1st reading 9-20-2016, 3rd reading 10-18-2016; effective March 1, 2017), codified in the Memphis Code of Ordinances at Chapter 5-44 (originally added as Article VII, Chapter 36, Section 36-130). CORRECTION: the draft's attribution to "Ordinance No. 5856, adopted March 21, 2023" could NOT be verified and is contradicted by the primary source and every located secondary source — the underlying/codified ordinance is No. 5631 (eff. 3-1-2017). The permit/registration regime (application, fees, $1M insurance, responsible-party-within-50-miles, advertising permit-number, life-safety compliance form, 365-day term) is NOT contained in Ordinance 5631; it derives from a later 2023 amendment to Chapter 5-44 — the City of Memphis reported STR permit applications began July 1, 2023 — but the specific amending ordinance number and date remain unconfirmed because the codified Municode Chapter 5-44 could not be retrieved (HTTP 403). Ordinance 5631 defines "Short Term Rental Property" as a structure or part of a structure used as a home, residence, dwelling, or habitable room complying with Ordinance No. 4232 (minimum conditions of property), excluding units rented to the same occupant for more than thirty continuous days and excluding bed-and-breakfast establishments, boarding houses, hotels, and motels; note the "not more than three (3) sleeping rooms" limit in the draft is NOT in Ordinance 5631 and secondary sources conflict (3 vs 4 rooms) — needs_review. VERIFIED taxes (Ordinance 5631 §4): Memphis levies a privilege (occupancy) tax of three and one-half percent (3.5%) of the consideration charged (pursuant to Ordinance 5619), plus an assessment of two dollars ($2.00) per paid occupied room night dedicated to destination marketing (pursuant to Ordinance 5595). Tennessee state sales tax (7%) plus the local option sales tax also apply (the Memphis combined local option is 2.75%, of which Shelby County levies 2.25%, for a ~9.75% combined sales tax). A hosting platform under a voluntary collection agreement with the city is solely liable for collecting/remitting the occupancy and sales taxes; otherwise the owner is liable. STRs are regulated under the STR ordinance rather than the rooming-house provisions of the Memphis and Shelby County Unified Development Code §2.5.2, with no primary-residence requirement, no annual night cap, and no per-bedroom occupancy formula in Ordinance 5631. Reported 2023-amendment / secondary-sourced permit details (needs_review, not primary-verified): $300 non-refundable application fee, $150 annual renewal, 365-day permit term, $1,000,000 liability insurance, responsible party within 50 miles, permit number displayed in all advertising, permits issued by the City of Memphis Division of Public Works, and grandfathering of pre-July-1-2023 STRs (per T.C.A. §13-7-603) until the property is sold, transferred, discontinued as an STR for 30 continuous months, or cited for 3+ violations. This Memphis city regime is separate from the Shelby County (unincorporated) STR ordinance.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • city Short Term Rental Permit Required
    Fee: $300 / application (initial) · Renewal: Reported 365-day term with a $150 renewal (secondary sources); renewal reportedly due ~30 days before expiration. Not primary-verified. · Applies to: Any owner operating or advertising a residential structure/dwelling for transient occupancy (stays under 30 continuous days) within Memphis city limits; a separate permit is required for each unit. · official page ↗
  • city Liability insurance ($1,000,000) Required
    Fee: — · Renewal: Reportedly verified at application and renewal · Applies to: STR permit applicants/holders (2023 amendment) · official page ↗
  • city Display permit number in all advertising Required
    Fee: — · Renewal: — · Applies to: Any listing/advertisement of the STR on any website, mobile application, or hosting platform · official page ↗
  • city Responsible party / 24-7 contact Required
    Fee: — · Renewal: — · Applies to: STR owners; a designee must be reachable at all times to address problems or complaints · official page ↗
  • city Life-safety compliance (smoke/CO alarms) + compliance verification form Required
    Fee: — · Renewal: — · Applies to: All STR owners/applicants · official page ↗
  • state Tennessee sales and use tax registration (TNTAP) Required
    Fee: — · Renewal: Ongoing sales/use tax return filing · Applies to: Property owners, marketplace facilitators, and property management companies with over $100/month in taxable sales; a marketplace facilitator that collects/remits may cover the owner's obligation · official page ↗
  • city Collect/remit Memphis STR occupancy and sales taxes Conditional
    Fee: — · Renewal: — · Applies to: STR owners must collect and remit the city occupancy/privilege tax and $2.00-per-paid-occupied-room-night assessment unless a hosting platform under a voluntary collection agreement with the city has collected/remitted them · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
City short-term rental privilege (occupancy) tax — — — —
City destination-marketing assessment — — — —
Tennessee state sales tax — — — —
Local option sales tax (Memphis/Shelby County) — — — —

Operating rules

Primary residence
No
Min stay (nights)
1
Max nights / year
—
Max occupancy
—
Zoning-restricted
No
Cap on licenses
—

Zoning: VERIFIED (Ordinance No. 5631, Sections 2-3): STRs are regulated solely by the Short Term Rental Ordinance and not by the rooming-house provisions of the Memphis and Shelby County Unified Development Code §2.5.2 — 'all Short Term Rental Properties shall be subject to the regulations of this ordinance and not those outlined for rooming houses in Section 2.5.2 of the Memphis and Shelby County Unified Development Code.' A 'Short Term Rental Property' is 'a structure or the part of a structure that is used as a home, residence, dwelling, or habitable room and complies with Ordinance No. 4232 governing the minimum conditions of property,' excluding units rented to the same occupant for more than thirty continuous days and excluding bed-and-breakfast establishments, boarding houses, hotels, and motels. Ordinance 5631 imposes no zoning-district restriction, no primary-residence requirement, and no per-bedroom occupant formula. NEEDS_REVIEW: the '≤3 sleeping rooms' cap asserted in the draft is NOT in Ordinance 5631 and secondary sources conflict (3 vs 4 sleeping rooms) — it may originate in the 2023 amendment / current Chapter 5-44 codification, which could not be retrieved (Municode HTTP 403).

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Frequently asked questions

Is Airbnb legal in Memphis?
Short-term rentals are legal in Memphis but require a Short Term Rental permit. STRs are governed by the Memphis Short Term Rental Ordinance, originally enacted as Ordinance No. 5631 (passed 2016 — 1st reading 9-20-2016, 3rd reading 10-18-2016; effective March 1, 2017), codified in the Memphis Code of Ordinances at Chapter 5-44 (originally added as Article VII, Chapter 36, Section 36-130). CORRECTION: the draft's attribution to "Ordinance No. 5856, adopted March 21, 2023" could NOT be verified and is contradicted by the primary source and every located secondary source — the underlying/codified ordinance is No. 5631 (eff. 3-1-2017). The permit/registration regime (application, fees, $1M insurance, responsible-party-within-50-miles, advertising permit-number, life-safety compliance form, 365-day term) is NOT contained in Ordinance 5631; it derives from a later 2023 amendment to Chapter 5-44 — the City of Memphis reported STR permit applications began July 1, 2023 — but the specific amending ordinance number and date remain unconfirmed because the codified Municode Chapter 5-44 could not be retrieved (HTTP 403). Ordinance 5631 defines "Short Term Rental Property" as a structure or part of a structure used as a home, residence, dwelling, or habitable room complying with Ordinance No. 4232 (minimum conditions of property), excluding units rented to the same occupant for more than thirty continuous days and excluding bed-and-breakfast establishments, boarding houses, hotels, and motels; note the "not more than three (3) sleeping rooms" limit in the draft is NOT in Ordinance 5631 and secondary sources conflict (3 vs 4 rooms) — needs_review. VERIFIED taxes (Ordinance 5631 §4): Memphis levies a privilege (occupancy) tax of three and one-half percent (3.5%) of the consideration charged (pursuant to Ordinance 5619), plus an assessment of two dollars ($2.00) per paid occupied room night dedicated to destination marketing (pursuant to Ordinance 5595). Tennessee state sales tax (7%) plus the local option sales tax also apply (the Memphis combined local option is 2.75%, of which Shelby County levies 2.25%, for a ~9.75% combined sales tax). A hosting platform under a voluntary collection agreement with the city is solely liable for collecting/remitting the occupancy and sales taxes; otherwise the owner is liable. STRs are regulated under the STR ordinance rather than the rooming-house provisions of the Memphis and Shelby County Unified Development Code §2.5.2, with no primary-residence requirement, no annual night cap, and no per-bedroom occupancy formula in Ordinance 5631. Reported 2023-amendment / secondary-sourced permit details (needs_review, not primary-verified): $300 non-refundable application fee, $150 annual renewal, 365-day permit term, $1,000,000 liability insurance, responsible party within 50 miles, permit number displayed in all advertising, permits issued by the City of Memphis Division of Public Works, and grandfathering of pre-July-1-2023 STRs (per T.C.A. §13-7-603) until the property is sold, transferred, discontinued as an STR for 30 continuous months, or cited for 3+ violations. This Memphis city regime is separate from the Shelby County (unincorporated) STR ordinance.
Do I need a license or registration for a short-term rental in Memphis?
Yes — Memphis requires: Short Term Rental Permit; Liability insurance ($1,000,000); Display permit number in all advertising. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Memphis?
City short-term rental privilege (occupancy) tax, City destination-marketing assessment, Tennessee state sales tax, Local option sales tax (Memphis/Shelby County). Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

In Tennessee · Shelby County

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Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.