Short-Term Rentals in Memphis, TN

Memphis maintains 129 local ordinances across all categories, and 7 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Memphis falls on the strict-to-permissive spectrum compared to other cities.

Occupancy Limits

Memphis doesn't set one citywide headcount for short-term rentals; instead, § 5-44-5(C)(1) makes each owner declare the 'maximum number of transient capacity per night' for their unit on the permit application, backed by a scaled site plan the Division of Public Works reviews before issuing the permit.

Key details: How capacity is set: Owner-declared on permit application. Required backup: Scaled site plan. Reviewing agency: Division of Public Works. Inspection authority: Pre-issuance & pre-renewal, discretionary.

The code doesn't fix a fine for exceeding the declared capacity, but operating outside the approved permit conditions is enforceable: § 5-44-5(L) authorizes the division of public works to suspend or revoke a permit for noncompliance, and a false or misleading capacity figure submitted on the application is separate grounds for permit denial or revocation under § 5-44-5(K).

Noise Rules

Short-term rental guests and owners in Memphis must follow the city's general noise ordinance under City Code § 5-44-6(A), now Chapter 9-68, which bars any 'unreasonably loud, disturbing and unnecessary noise' anywhere in the city: the same standard enforced against every other property.

Key details: STR-specific rule: § 5-44-6(A) applies citywide noise code. Underlying standard: § 9-68-1 bans unreasonable noise. Responsible party duty: Available 24/7 to respond in person. Non-response penalty: Permit suspension up to 30 days. Repeat noise violations: Count toward 3-strike revocation.

A noise violation at a short-term rental is prosecuted under the general noise ordinance, Chapter 9-68, like any other property in the city. Beyond that citation, a responsible party's failure to appear promptly to address a noise complaint at the unit is independent grounds for the Division of Public Works to suspend the short-term rental permit under § 5-44-5(E), and repeated, court-confirmed noise violations tied to the unit's operation count toward the three-strikes revocation rule in § 5-44-7.

Insurance Requirements

Memphis requires every short-term rental permit applicant to prove at least $1,000,000 in fire, hazard, and liability coverage before the city will issue a permit. City Code § 5-44-5(C)(4) makes the verification part of the mandatory application package reviewed by Public Works.

Key details: Minimum coverage: $1,000,000 per occurrence. Coverage types: Fire, hazard, and liability. Reviewed by: City of Memphis Division of Public Works. Timing: Required at filing and must stay current. Applies per: Each individually permitted rental unit.

An applicant who cannot verify the $1,000,000 fire, hazard, and liability coverage cannot receive a permit: § 5-44-5(G)(2) conditions issuance on the operation contemporaneously meeting the ordinance's insurance coverages, so the Division of Public Works withholds or can revoke the permit until proof of the required policy is on file.

Short-Term Rental Permits

Memphis requires short-term rental owners to register electronically or in writing with the Division of Public Works, disclosing insurance, a compliance-verification form, and a local 'responsible party' under § 5-44-5(C), and permits issue only once the division confirms the application is complete and accurate under § 5-44-5(G).

Key details: How to apply: Electronically or in writing to Public Works. Insurance minimum: $1,000,000 per occurrence. Responsible party: Must reside within 50 miles. Prior-denial lookback: 365 days. False statement penalty: Denial/revocation, 12-month bar.

Submitting 'any false, misleading, or fraudulent statement of fact' in a registration is grounds for permit denial or revocation under Section 5-44-5(K), with revocation lasting 12 months if the owner doesn't successfully show cause. Failing to keep a responsible party reachable to respond to violation complaints is grounds for suspension of up to 30 days under Section 5-44-5(E), after notice and a chance to show cause.

This is not one of those rules that cities tend to ignore. Memphis actively enforces its short-term rental permits requirements.

Host Platform Liability

Memphis makes a hosting platform solely liable for collecting and remitting STR occupancy and sales tax once it signs a voluntary collection agreement with the city under § 5-44-4(A); absent that agreement, liability reverts to the owner, and every listing must display its permit number under § 5-44-5(B).

Key details: Platform liability trigger: Signed voluntary collection agreement. Default liability: Owner, absent platform agreement. Listing requirement: Permit number must be displayed. Enforcement authority: Division of Public Works.

The code sets no separate fine specifically for a hosting platform's tax failure, but liability under § 5-44-4(A) is exclusive rather than shared: without a signed voluntary agreement, the property owner remains liable for uncollected occupancy and sales tax regardless of the platform's role. Listings lacking the required permit number under § 5-44-5(B) also expose the property to permit suspension or revocation, since § 5-44-5(L) gives the division of public works authority to 'grant, deny, suspend, or revoke short term rental permits' for noncompliance.

Repeat Violator Strikes

Memphis revokes a short-term rental permit after three violations of local law tied to the property's operation. City Code § 5-44-7 requires a court to have confirmed each violation and the owner to have no appeal rights left before the unit loses its status.

Key details: Trigger: 3 court-confirmed local-law violations. Condition: No appeal rights remaining on any. Result: Permit revoked, STR use prohibited. Burden of proof: On the City of Memphis. Governing section: Memphis Code § 5-44-7.

Three court-confirmed violations of a generally applicable local law, nuisance, noise, traffic, health, or public-peace ordinances among them, that are directly tied to operating the unit, with no appeal rights left on any of the three, force revocation of the short-term rental permit and bar continued use of the property as a short-term rental under § 5-44-7.

Compared to other cities, Memphis takes a harder line on repeat violator strikes. The enforcement and penalty structure reflects that.

Taxes & Fees

Memphis short-term rental owners pay a 3.5% privilege tax on top of a $2.00-per-night marketing assessment under City Code § 5-44-4, plus a $300.00 non-refundable permit application fee and a $150.00 annual renewal fee under § 5-44-5.

Key details: STR privilege tax: 3.5% of consideration. Marketing assessment: $2.00 per occupied room night. Application fee: $300.00, non-refundable. Renewal fee: $150.00 every 365 days. Unpermitted operation penalty: Double fees once permitted.

Operating an STR without the required permit triggers double fees once the permit is obtained, per Section 5-44-5(I). Under Section 5-44-4(A), whichever party is liable for collecting occupancy and sales tax, the hosting platform under a voluntary agreement, or the owner otherwise, must remit it to the city; failing to do so exposes the liable party to the city's tax enforcement and collection remedies.

The Bottom Line

Memphis is tougher than many cities when it comes to short-term rentals. Out of the 7 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Memphis, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Memphis's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.