Shelby County, TN

Memphis, TN short-term rental limits

Memphis is the only Tennessee city in this silo that limits how many rentals a building may hold. Chapter 5-44 of the city code requires a permit before a short-term rental operates, costing $300 to apply and $150 to renew, valid for 365 days. Alongside the insurance and the responsible party, the ordinance sets a five percent cap on the share of units in a multi-family property that may be run as short-term rentals — which decides the question for apartment blocks before any individual application is filed.[3]

Every rule below links to the official source it comes from, verified September 20, 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, and every property used as one 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, and 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, so in an apartment building the question of whether a permit is available at all is settled by how many neighbours 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.[3]

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.[3]

  • 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.[3]

  • Proof of insurance is required, and the responsible party must be located within fifty miles of the property.[3]

  • The permit must be visibly posted at the rental.[3]

  • No more than five percent of the units in a multi-family property may operate as short-term rentals.[3]

Apply on the Memphis site

What Tennessee asks wherever you host

These rules apply at this address whatever the city decides.

  • A short-term rental unit in Tennessee is a residential dwelling rented wholly or partially for a fee for less than thirty continuous days. Hotels and bed and breakfast establishments are outside the definition.[1]

  • If the property was already being used as a short-term rental when an ordinance was enacted, that ordinance does not apply to it. The rules in force when you started govern instead, until the property is sold, transferred, sits unused as a rental for thirty continuous months, or breaks a generally applicable local law three separate times.[1]

  • A city that runs a permitting or application process may suspend the use of a property for any period in which it does not hold a permit, provided its requirements are reasonable.[1]

All Tennessee short-term rental laws

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
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, and Memphis publishes its short-term room occupancy tax form separately from the permit pages.[2]

How short-term rental taxes work for US 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 — 4 out of every 1,000. That ranks Memphis 6th of the 6 Tennessee cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
6th of 6
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

Johnson City, TN

No city ordinance

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

Rules in Johnson City

Knoxville, TN

Registration required

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

Rules in Knoxville

Chattanooga, TN

Allowed by zone

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

Rules in Chattanooga

Sevierville, TN

Registration required

310 seasonal homes, 32 per 1,000 housing units.

Rules in Sevierville
The state hubEvery 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.Open the Tennessee hub

FAQ

Memphis short-term rental questions

Can every flat 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, so most applications in an apartment block fail on that count alone.[3]

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.[3]

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.[3]
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. 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 September 20, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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