13 verified short-term rentals rules for Memphis, Tennessee, sourced directly from the municipal code and official government pages.
Verified from official government sources
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.