Short-Term Rental Regulations — Tennessee
Hosts in Memphis must obtain a permit before listing their property on platforms like Airbnb or VRBO. The permit fee is $150, renewable Annual. Memphis allows non-owner-occupied short-term rentals, giving investors and property managers more flexibility. There is no annual day cap on rentals in Memphis. An occupancy tax of 5% applies to all short-term rental income. Airbnb and VRBO collect and remit this tax automatically.
Day Limit Notes
New regulations impose density limits and strict licensing for non-owner occupied.
⚠ Tax Notes
5% Shelby County Hotel/Motel Tax plus State/Local Sales Tax.
⚠ Prohibited Zones
Subject to neighborhood density caps.
Do I need a permit to run an Airbnb in Memphis?
Yes. Memphis requires a permit to operate a short-term rental. The permit fee is $150 and must be renewed Annual. You must obtain this permit before listing your property on Airbnb, VRBO, or other platforms.
What is the occupancy tax rate for short-term rentals in Memphis?
Short-term rentals in Memphis are subject to a 5% occupancy tax. Airbnb and VRBO automatically collect and remit this tax on behalf of hosts — you do not need to handle it separately. 5% Shelby County Hotel/Motel Tax plus State/Local Sales Tax.
Can I rent out a property I don't live in as an Airbnb in Memphis?
Yes. Memphis allows non-owner-occupied short-term rentals, meaning you can list investment properties or second homes that you do not personally occupy.
How many days per year can I rent my property in Memphis?
Memphis does not impose an annual day cap on short-term rentals. You can rent your property for as many days as you choose, subject to other local regulations. New regulations impose density limits and strict licensing for non-owner occupied.
Does Airbnb collect occupancy taxes in Memphis?
Yes. Airbnb and VRBO automatically collect and remit the 5% occupancy tax in Memphis on behalf of hosts. You do not need to separately collect or remit this tax — it is handled at the platform level.
Are there any prohibited zones for short-term rentals in Memphis?
Yes. Memphis prohibits short-term rentals in certain areas: Subject to neighborhood density caps.. Always verify your property's zoning status with the local planning department before listing.
Do I need to register my short-term rental in Memphis?
Yes. Memphis requires short-term rental hosts to register their property with the city. This is separate from any permit requirement and typically involves providing property information and contact details to the local authority.
Official Source
Memphis City Government
Last verified: 2026-03-23 · Always confirm with your local government before listing.