Overview

Short-term rentals ARE ALLOWED in Memphis, TN, but they are subject to a structured permitting and regulatory framework. The city requires all STR operators to obtain a Short-Term Rental Permit, comply with zoning laws, adhere to safety regulations, and register for tax collection and remittance. Memphis operates under a permitting system that balances investment opportunities with neighborhood protection and community standards.

How to Start a Short-Term Rental Business in Memphis

Step-by-Step Process

Step 1: Verify Zoning Compliance

• Confirm your rental property is located in an eligible zoning district
• STRs must comply with Memphis zoning ordinances
• Check zoning maps and verify permitted use status

Step 2: Obtain Short-Term Rental Permit

• All STR operators must obtain a Short-Term Rental Permit before listing
• Submit application through the designated permit portal
• Complete required documentation and safety compliance

Step 3: Register for Tax Collection & Payment

• Register with Shelby County Trustee's Office for county taxes
• Register with Tennessee Department of Revenue for state taxes
• Set up monthly filing and payment systems

Step 4: Maintain Ongoing Compliance

• Renew permits annually
• File and remit taxes monthly
• Maintain insurance coverage
• Adhere to operational requirements

Required Documents, Permits, Licenses, and Guidelines

Short-Term Rental Permit

• Initial Application Fee: $300 (one-time)
• Annual Renewal Fee: $150

Required Documentation:

• Proof of property ownership
• Floor plan indicating guest areas
• Proof of liability insurance ($1,000,000 minimum)
• Local contact person information for complaint resolution
• Fire safety compliance documents
• Smoke alarm and carbon monoxide detector certification

Tax Registration

• State Registration: Tennessee Department of Revenue
• County Registration: Shelby County Trustee's Office
• Filing Frequency: Monthly
• Payment Deadlines: 20th of each month for previous month's rentals

Insurance Requirements

• Minimum Liability Coverage: $1,000,000 required
• Must maintain continuous coverage while operating STR

Specific Regulations for Short-Term Rentals

Memphis City Regulations

Occupancy Limits:

• Maximum occupancy: Two people per bedroom plus two additional guests
• Must prominently display maximum occupancy limits

Zoning Requirements:

• STRs must be located in permitted zoning districts
• Must comply with Memphis Zoning Ordinance
• Verify zoning status before permit application

Safety Requirements:

• Approved smoke alarms required in all bedrooms and common areas
• Carbon monoxide detectors required where applicable
• Fire safety compliance documentation required
• Annual safety inspection may be required

Operational Rules:

• Noise control restrictions must be observed
• Compliance with local waste disposal regulations
• Parking regulations must be followed
• Guest record retention requirements

Shelby County Regulations

• County lodging tax applies to all STRs
• Additional county-specific requirements may apply
• Registration with county tax authorities required

Tennessee State Regulations

• State sales tax collection and remittance required
• Compliance with Tennessee business registration requirements
• Adherence to state fire safety and building codes

Contact Information

Memphis Planning & Zoning Department

• Phone: (901) 576-6619
• Email: planning@memphistn.gov
• Purpose: Zoning verification and compliance questions

Shelby County Trustee's Office

• Website: Shelby County Tax Portal
• Phone: (901) 222-0200
• Email: trustee@shelbycountytn.gov
• Purpose: County tax registration and remittance

Tennessee Department of Revenue

• Website: Tennessee Tax
• Phone: (615) 253-0600
• Purpose: State tax registration and compliance

Memphis STR Permit Application

• Online Portal: Memphis STR Permit Application
• Purpose: Submit permit applications and renewals

Tax Obligations

Tax Rates and Requirements

• Tennessee State Sales Tax: 7%
• Shelby County Lodging Tax: 5%
• Total Combined Tax Rate: 12%

Filing and Payment Schedule

• Frequency: Monthly filing and payment
• Deadline: 20th of each month for the previous month's rentals
• Consequences: Late payments subject to penalties and interest

Registration Requirements

• Must register with both state and county tax authorities
• Separate registration numbers required for state and county
• Online filing systems available for both jurisdictions

Key Considerations for Investors

Investment Environment

• Memphis presents structured but accessible STR regulations
• Permit process is clear and well-defined
• Enforcement is active but predictable

Compliance Requirements

• Regular permit renewals required
• Monthly tax filing obligations
• Insurance maintenance requirements
• Safety standard compliance

Market Considerations

• Growing STR market with established regulatory framework
• Tourist attractions and business travel support demand
• Urban location with diverse neighborhood characteristics

Links to Source Pages

1. Memphis STR Permit Application
2. Memphis Zoning Ordinance
3. Shelby County Tax Portal
4. Tennessee Department of Revenue
5. Chalet Market Dashboard - Memphis

Important Disclaimer: This guide is for informational purposes only and should not be considered legal or professional advice. Regulations can change, and investors should verify current requirements with local authorities before making investment decisions. The information provided is current as of 2025 but may be subject to change by local, state, or federal authorities.