Shelby County, TN

Memphis, TN short-term rental limits

Memphis wants a city permit in hand before you host, and in a multi-family building a cap on units can put one out of reach. The permit's validity runs from the day it is issued rather than by calendar year. The responsible party you designate is named on the permit itself.[5]

Every rule below links to the official source it comes from, verified October 2, 2026.

Can you rent short term in Memphis?

Limited number allowed

What you apply for: Short-term rental permit, city code chapter 5-44

Seasonal homes
1,064
Housing units
289,887
Residents
618,980

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City ruleCapped
  • City fee$300
  • Tax on each staySet locally
  • Seasonal homes4 per 1,000

Memphis short-term rental permit

Memphis requires a permit before a short-term rental operates, under chapter 5-44 of the city code. Every such property has to be registered through the short-term rental registry maintained by the Memphis and Shelby County Division of Planning and Development. The permit costs $300 to apply for and $150 to renew, and is valid for 365 days. Applicants provide proof of insurance and name a responsible party located within fifty miles of the property. The permit itself has to be visibly posted. The provision that decides the most cases is the cap. No more than five percent of the units in a multi-family property may operate as short-term rentals. In an apartment building, whether a permit is available at all is settled by how many neighbors already hold one. Tennessee's own Short-Term Rental Unit Act still applies on top, including the protection for properties already operating when an ordinance was enacted.[5]

What Memphis asks of you

  • Properties used as short-term rentals must be registered through the short-term rental registry maintained by the Memphis and Shelby County Division of Planning and Development.[5]

  • Chapter 5-44 of the city code requires a permit before operation. It costs $300 to apply for and $150 to renew, and is valid for 365 days.[5]

  • Proof of insurance is required, and the responsible party must be located within fifty miles of the property.[5]

  • The permit must be visibly posted at the rental.[5]

  • No more than five percent of the units in a multi-family property may operate as short-term rentals.[5]

Apply on the Memphis site

What Tennessee asks wherever you host

These rules apply at this address whatever the city decides.

  • Tennessee's definition covers a residential dwelling rented for a fee, in whole or in part, for under thirty continuous days. Hotels fall outside it, as do bed-and-breakfast establishments.[1]

  • A local ordinance passed after a property began operating as a short-term rental does not reach that property. The rules in place when it started keep governing it. A sale or other transfer ends that protection. Thirty continuous months without rental use end it as well. Three separate breaches of a generally applicable local law have the same effect.[1]

  • A city with a permit or application process may suspend a property's use while it lacks a permit. That power holds only when the city's requirements are reasonable.[1]

Tennessee short-term rental rules

What a guest pays on top of your nightly rate in Memphis

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Memphis
LayerRateRemitted to
Tennessee state sales tax[3]7%The state revenue department
Local sales tax[4]2.75%The state revenue department
City room occupancy tax[2]Not publishedThe city

A Tennessee city levies its room occupancy tax by ordinance, capped at four percent where it rests on T.C.A. § 67-4-1402. Memphis publishes its short-term room occupancy tax form separately from the permit pages.[2]

Tennessee occupancy taxAirbnb taxes for hosts

What the census counts

How much of Memphis is already a second home

The Census Bureau counts 1,064 of Memphis's 289,887 homes as vacant for seasonal, recreational or occasional use. That is 4 out of every 1,000. It ranks Memphis 9th of the 9 Tennessee cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
9th of 9
Share of housing
4 per 1,000
Median home value
$169,000

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Memphis sits among its neighbors

Nashville, TN

Restricted by zone

If you live in the home, apply for an owner-occupied permit. New non-owner-occupied permits are not issued in AR2A, R, RS or RM zones.

Nashville short-term rental rules

Johnson City, TN

No city ordinance

271 seasonal homes, 8 per 1,000 housing units.

Johnson City short-term rental rules

Knoxville, TN

Permit required

851 seasonal homes, 9 per 1,000 housing units.

Knoxville short-term rental rules

Gatlinburg, TN

Permit required

1,641 seasonal homes, 340 per 1,000 housing units.

Gatlinburg short-term rental rules
StatewideEvery Tennessee city on this site, in one tableState law, the tax stack and every city we cover in Tennessee, with what each one asks of a host.Tennessee short-term rental rules

Keep exploring

FAQ

Memphis short-term rental questions

Can every apartment in a Memphis building be a short-term rental?

No. The ordinance caps short-term rentals at five percent of the units in a multi-family property.[5]

How far away can my responsible party live?

Within fifty miles of the property. That person is named on the permit, alongside proof of insurance, and the permit has to be visibly posted at the rental.[5]

What does a Memphis permit cost?

$300 for the application and $150 for each renewal. A permit is valid for 365 days from issue rather than for a calendar year.[5]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
  2. Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
  3. Taxation of Short-Term Rental Units, June 2026, Tennessee Department of Revenue, read on October 2, 2026
  4. Tennessee sales tax rate file, fourth quarter 2026 (TNR2026Q4AUG21), Tennessee Department of Revenue, through the Streamlined Sales Tax Governing Board, read on October 2, 2026
  5. Short-term rental compliance, licenses and permits, City of Memphis, read on September 20, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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