Memphis, Texas Short Term Rental Regulations Guide for Airbnb hosts

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.

What do Airbnb hosts actually earn in Memphis?

Memphis hosts earn a median $23,858/year with $184 ADR and 39% occupancy.

Top performers pull in $28,283+ per year.

See the full Memphis market breakdown

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

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.

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Ask the AI Advisor about Memphis

Memphis is a small, quiet community that serves as the county seat of Hall County in the southeastern corner of the Texas Panhandle. With a population of roughly 2,000 residents, it has the feel of a classic rural Texas town, surrounded by wide-open plains, cotton fields, and ranchland that stretches toward the Red River. Memphis is best known as a stop along the historic routes that connect the Panhandle to the rest of north Texas, and as a friendly base for travelers exploring the lesser-visited eastern edge of the Panhandle region. The city sits about 120 miles east-southeast of Amarillo and roughly 100 miles northeast of Lubbock, making it a convenient pause point for road-trippers moving between larger hubs.

Just south of town, Caprock Canyons State Park offers one of the most striking natural landscapes in the region. The park features dramatic canyon walls, the official Texas State Bison herd, and miles of trails for hiking, biking, and horseback riding. It lies about 60 to 70 miles southwest of Memphis, typically reached by a little over an hour's drive through the rolling ranch country of the lower Panhandle.

To the northwest, roughly a two-hour drive away, Palo Duro Canyon State Park near Amarillo is one of the largest and most visited canyon systems in Texas. Visitors come for the vivid red and orange rock formations, the scenic driving loop, the popular outdoor musical performed in the canyon amphitheater, and the extensive trail network that winds down to the canyon floor. For a short-term rental owner in Memphis, this marquee attraction is close enough to draw guests willing to base themselves in a quieter, more affordable Panhandle community while still accessing one of the state's signature landscapes.

Within an hour's drive to the southeast, the city of Childress offers additional amenities, including a historic downtown square, antique shops, and a small aviation heritage museum. Closer to Memphis itself, the surrounding Hall County countryside and the Red River valley provide opportunities for wildlife viewing, hunting in season, and stargazing under some of the darkest skies in the state.

Memphis is a compelling base for short-term rentals because of its position at the crossroads of the southern Panhandle. Guests get the calm and affordability of a small Texas town paired with relatively easy access to major regional draws like Palo Duro Canyon, the friendly rural character of Hall County, and the wide-open landscapes that define this corner of the state. For travelers who prefer uncrowded, off-the-beaten-path destinations with plenty of nearby day-trip options, Memphis delivers a relaxed and authentic Panhandle experience.

Memphis, Texas

Very Investor Friendly

STR Regulations for Memphis, Texas