Memphis, TN Short-Term Rentals: Permit Requirements (2026)

Memphis Code of Ordinances Chapter 5-44 (Short Term Rental Ordinance) was adopted in 2023 and became effective July 1, 2023, amending Memphis's original 2016 STR framework. The ordinance defines a short-term rental as a dwelling unit with up to 4 sleeping rooms rented to a single party for no more than 30 continuous days. Every operator must apply for and maintain a Short-Term Rental Permit issued by the City of Memphis Division of Public Works. The application requires: (1) a $300 non-refundable application fee, with a $150 annual renewal fee thereafter; (2) the principal renter and operator must be at least 18 years of age (LLC and other entity ownership is permitted, but a natural-person responsible party must be identified); (3) proof of fire, hazard, and liability insurance with liability coverage of not less than $1,000,000 per occurrence; (4) verification that the property's zoning district allows short-term rental use; (5) a 24-hour local responsible-party contact who can respond to complaints; (6) compliance with the Memphis Property Maintenance and Fire Codes, including smoke alarms and carbon monoxide detectors in every sleeping room; and (7) registration for the Tennessee state and local sales taxes, Memphis privilege/business tax, and the Tennessee state and local occupancy (transient room) taxes. Permits are issued for 365 days and must be renewed prior to expiration. Tennessee's short-term rental preemption statute, T.C.A. Section 13-7-602, generally limits local STR bans for properties that operated lawfully before March 2018 but expressly permits local governments to require permits, insurance, occupancy limits, life-safety inspections, and tax registration; Memphis's Chapter 5-44 framework operates within that authorization. Enforcement is conducted by the Division of Public Works in cooperation with Memphis Code Enforcement and Fire Services.