How Memphis Handles Short-Term Rentals: A Practical Guide
Memphis maintains 200 local ordinances across all categories, and 13 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.
Insurance Requirements
Memphis requires short-term rental operators to carry liability insurance of at least $1,000,000 or use a booking platform that provides equivalent host protection. Proof of coverage must be submitted with the STR permit application annually.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
Compared to other cities, Memphis takes a harder line on insurance requirements. The enforcement and penalty structure reflects that.
Night Caps
Memphis does not currently impose a hard annual night cap on short-term rentals. Owner-occupied and non-owner-occupied units both operate year-round, provided the STR permit and taxes stay current. Non-owner-occupied units in residential zones face density caps instead.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
Memphis is more permissive than most cities when it comes to night caps. That said, there are still limits.
Registration Rules
Every Memphis short-term rental must be registered with the city and receive a permit before accepting bookings. Registration requires proof of insurance, a parking plan, a 24/7 local contact, and payment of the annual permit fee. Unpermitted units face fines up to $500 per day.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
This is one of the stricter rules in Memphis's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.
Noise Rules
Memphis short-term rentals must comply with the citywide noise ordinance and carry a 24/7 local contact responsible for resolving disturbances. Operators face escalating fines and permit revocation for repeated noise violations, with quiet hours beginning at 10 p.m.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
This is one of the stricter rules in Memphis's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.
Parking Rules
Memphis short-term rentals must provide off-street parking for guests and may not overflow onto neighboring yards. The STR permit requires a parking plan showing one space per bedroom, with on-street parking allowed only where legal and posted.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
Occupancy Limits
Memphis short-term rentals are capped at two guests per bedroom plus two, with a hard overall maximum set by the building code. The occupancy limit must be posted inside the unit and listed on all booking platforms.
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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [Memphis code enforcement](https://www.memphistn.gov) directly for current fines, enforcement procedures, and hearing options.
Compared to other cities, Memphis takes a harder line on occupancy limits. The enforcement and penalty structure reflects that.
Repeat Violator Strikes
Memphis Code Enforcement and Permit Office track STR violations under Ord. 5894. Three substantiated violations within a 12-month period trigger automatic permit revocation and a one-year reapplication ban.
Key details: Strikes window: 12 months rolling. Revocation trigger: 3 violations. Reapplication ban: 1 year. Appeal deadline: 30 days.
Three substantiated complaints in 12 months, falsified records, or operating after revocation produces fines up to $500 per day plus a one-year ban from reapplying for the address.
Primary-Residence-Only Rule
Memphis Ordinance 5894 splits short-term rentals into Type A (owner-occupied primary residence) and Type B (non-primary). Type A operators must use the dwelling as their primary residence at least 185 days per calendar year.
Key details: Authority: Memphis Ord. 5894. Primary residence: 185+ days/year. Permit types: Type A or Type B. Renewal: Annual with proof.
Operating without proof of primary residence, falsifying residency documents, or converting a Type A unit to a non-owner-occupied rental triggers permit revocation, fines, and a one-year reapplication ban.
Compared to other cities, Memphis takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.
Host Platform Liability
Memphis Ord. 5894 requires hosting platforms operating in the city to display valid permit numbers on every listing. Platforms that knowingly facilitate unpermitted STR bookings may face civil enforcement and listing-removal demands.
Key details: Permit number: Required on listing. Platforms covered: Airbnb, VRBO, Booking. State authority: TCA 13-7-602. Audit: Permit Office sweeps.
Listings without a visible permit number, platforms ignoring takedown letters, and hosts using fabricated permit numbers all face fines and listing-removal action coordinated with the platform.
Host Presence Rule
Memphis does not require Type A hosts to be physically present during guest stays, but the unit must remain the host's primary residence. A 24/7 local responsible-party contact is mandatory and must respond to complaints within one hour.
Key details: Host onsite required: No. Local contact: Within Shelby County. Response window: 60 minutes. 24/7 phone: Required on listing.
Unreachable local contacts, response delays beyond 60 minutes, or repeated neighbor complaints with no host action result in permit suspension and may upgrade enforcement to revocation.
Extended Home Share
Memphis Ord. 5894 applies only to rentals shorter than 30 consecutive days. Extended home-shares and corporate housing of 30 days or more are governed by Tennessee URLTA (TCA 66-28) as standard residential tenancies, not STRs.
Key details: STR threshold: Under 30 days. 30+ days: TN URLTA applies. State law: TCA 66-28. City permit: Not required for 30+.
Misclassifying short stays as long-term to dodge STR permits, terminating a 30-plus-day tenancy without TURLTA notice, or charging illegal security deposits triggers state-court action and city fines.
The rules around extended home share in Memphis lean permissive, but that does not mean anything goes.
Taxes & Fees
STR operators in Memphis must collect and remit a total lodging tax of approximately 12%: 7% state sales tax + 5% Shelby County lodging tax (TCA §67-4-1401). Additionally, a city occupancy privilege tax and $2/bedroom/night assessment applies. Monthly filing by the 20th.
Key details: Total Tax Rate: ~12% (state 7% + Shelby County 5%). City Assessment: $2/bedroom/night occupancy privilege tax. Filing: Monthly by the 20th of each month. Registration: Shelby County Trustee + TN Dept of Revenue.
Non-remittance: penalties + interest per TN Dept. of Revenue. Tax evasion: Class E felony for large amounts.
Permit Requirements
Memphis requires every short-term rental to hold a city permit under Memphis Code of Ordinances Chapter 5-44 (Short Term Rental Ordinance), effective July 1, 2023. The application fee is $300 and the annual renewal is $150. Operators must carry a minimum of $1 million in liability insurance, limit each unit to no more than 4 sleeping rooms, and cap stays at 30 continuous days. Tennessee's preemption law (T.C.A. Section 13-7-602) allows Memphis to maintain this permit framework.
Key details: Code Section: Memphis Code of Ordinances Chapter 5-44 (effective July 1, 2023). Application Fee: $300 (non-refundable). Annual Renewal Fee: $150. Liability Insurance: $1,000,000 minimum per occurrence. Sleeping-Room Cap: 4 per unit.
Operating a short-term rental in Memphis without a current Chapter 5-44 permit is enforceable by the City of Memphis Division of Public Works and Memphis Code Enforcement. Civil penalties for operating without a permit are $50.00 per day per unit, plus court costs, with each day of unpermitted operation a separate offense. Permits may be denied, suspended, or revoked for repeated verified violations including unresolved noise or nuisance complaints, exceeding the 4-sleeping-room cap, exceeding the 30-day continuous-stay limit, failure to maintain the required $1,000,000 liability insurance, failure to comply with the Memphis Property Maintenance and Fire Codes, or failure to remit Tennessee state and local sales tax, Memphis privilege tax, or Tennessee transient room (occupancy) tax. Permit revocation typically carries a 12-month bar on reapplying for the same property. Tax violations are independently enforceable by the Tennessee Department of Revenue under T.C.A. Title 67 and by Memphis Treasury for the local privilege and occupancy tax components.
This is not one of those rules that cities tend to ignore. Memphis actively enforces its permit requirements requirements.
The Bottom Line
Memphis is tougher than many cities when it comes to short-term rentals. Out of the 13 rules covered here, 6 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.