Memphis, Tennessee

Memphis requires a Short-Term Rental Property Permit for any residential dwelling or accessory unit rented to transient guests for fewer than 30 consecutive days. The framework was overhauled by Ordinance No. 5631, effective July 1, 2023. The permit application fee is $300 (non-refundable), renewed annually; permits expire 365 days after issuance and are non-transferable. Applicants must submit a site plan, proof of ownership, proof of at least $1,000,000 in liability and hazard insurance, property-tax certification showing no outstanding taxes, a final code-enforcement inspection, and a designated responsible party with an address within approximately 50 miles available 24/7. Safety requirements include smoke alarms in sleeping areas, carbon monoxide detectors on every habitable floor, and a fire extinguisher. Occupancy is capped at two people per bedroom plus two additional guests. Memphis does not require owner-occupancy or primary residence, and there is no annual cap on nights rented, making it accessible to non-resident investors. The guest tax burden includes a 3.5% city short-term rental tax plus a 5% Shelby County privilege and occupancy tax (combined 8.5%), plus a $2 per bedroom per night charge, in addition to state and local sales taxes for a total combined guest tax burden of approximately 18.75%. Operating without a permit carries a fine of $50 per day per unit. Grandfathered permits no longer transfer on sale; new owners must apply under current rules.