Memphis, TN Short-Term Rentals: Occupancy Limits (2026)

Memphis regulates short term rental occupancy through the permit process rather than a flat numeric cap written into the ordinance. Section 5-44-5(C) requires permit applications to 'include...1.The maximum number of transient capacity per night for each short term rental unit including a site plan, drawn to scale, showing each unit and other structures and site features as determined by the division of public works.' In practice, the owner proposes the per-night guest capacity for the specific unit, and the division of public works can use the accompanying site plan to evaluate whether that number is workable for the property before a permit is issued.

The division also retains inspection authority to confirm compliance: the code's next paragraph (also lettered C) allows representatives of the division of public works to 'conduct an on-site inspection of the property for which a permit or permits are sought to confirm the units comply with the requirements of this article,' both before initial issuance and before renewal, though such inspections are 'permitted, but not required.' Because the capacity figure becomes part of the approved permit application, exceeding it would put the STR out of compliance with its own permit terms, and the division of public works holds broad authority under Section 5-44-5(L) to 'enforce this article, including the authority to grant, deny, suspend, or revoke short term rental permits' for units that operate outside their approved conditions.