Local Airbnb rules2026 18 sources cited

Is Airbnb Legal in Memphis? 2026 Rules, Permits & Taxes

Short-term rentals are legal in Memphis with a city permit ($300 to apply, $150 to renew); no owner-occupancy rule, up to three sleeping rooms, and stays carry 7% state sales tax, local sales tax, a 4% city tax and $2 a night.^1,5,6

Source: AirROI Reviewed by Jun Zhou, Founder @ AirROI Updated November 4, 2026

From 15 official sources, 1 Airbnb help page and 2 news reports, checked October 17, 2026. Not legal advice.

The short answer

Memphis Airbnb Rules in Brief

Permit: $300 to apply and $150 a year to renew for each rental of up to three sleeping rooms; the permit number must appear in every listing.
Requirements: $1,000,000 liability insurance, a responsible party within 50 miles, smoke alarms and carbon monoxide detectors; the city code sets no owner-occupancy rule.
Taxes: 7% state sales tax, local sales tax, a 4% city room occupancy tax and $2.00 per room night, all collected by Airbnb.
Fines: up to $50 a day for each violation plus up to $200 in added penalties, and permit fees double after unpermitted operation.

Browse the live Memphis Airbnb market Search by revenue, occupancy and neighborhood on an interactive map See Every Memphis Listing

Revenue, occupancy and nightly rates are in the Memphis Airbnb market report .

At a glance

Memphis Airbnb Rules at a Glance

Permit required: Yes
Taxes on a stay: 11% + $2
Fine for hosting without a permit: Up to $50
Listings showing a permit number: 3%
Latest rule change: Oct 8, 2026

Listing figures: AirROI, 12 months to October 2026. A number on a listing doesn't prove the permit or license is valid, and a missing one doesn't prove there is none.

The rules in brief

The rules a Memphis host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Memphis Airbnb Rules at a Glance
Topic	Rule	Since
Permit	A city permit is required to operate and to advertise^1,5	July 2023
Who can host	No owner-occupancy requirement; companies can hold title¹	July 2023
Where	Chapter 5-44 governs, not the rooming-house zoning rules¹	July 2023
Building rules	HOAs, condos and landlords can still say no¹¹	May 2018
Minimum stay	Stays of 29 nights or fewer are short-term rentals¹	July 2023
Guests	Up to three sleeping rooms¹	July 2023
Listing display	Show the permit number in every listing¹	July 2023
Safety	Smoke alarms and carbon monoxide detectors¹	July 2023
Insurance	$1,000,000 liability insurance¹	July 2023
Neighbors	A responsible party within 50 miles^1,6	July 2023

Your home

Can You Host an Airbnb in Memphis? It Depends on the Home

Whether you can host in Memphis turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed with conditions

Allowed with the city permit ($300 to apply, $150 a year to renew), up to three sleeping rooms, $1,000,000 in liability insurance and a responsible party within 50 miles. Memphis sets no owner-occupancy rule and no night cap.^1,5,6

A room in your home with you present

Allowed with conditions

The same permit applies, because the code covers a unit rented in whole or in part, and the unit rented can have no more than three sleeping rooms.^1,5

A second home or investment property you don't live in

Allowed with conditions

Allowed with the permit. The city code has no owner-occupancy requirement, and a company, association or corporation can be the owner on the tax bill. Each property needs its own permit.¹

A home that was already a short-term rental before July 1, 2023

Allowed

The permit requirement does not apply to the owner until the property is sold, transferred, idle for 30 continuous months or found in violation of generally applicable local law three or more times. Tax and safety duties still apply.^1,5,11

A rented home (tenant hosting)

Allowed with conditions

The application asks for proof of the owner's current ownership, and state law lets a landlord restrict short-term rentals in a lease, so a tenant needs the owner's agreement before applying.^1,11

A condo or apartment building

Allowed with conditions

The city permit covers apartments and condominiums, but a condominium or homeowners association can prohibit rentals in its governing documents.^5,11

Permit

Do You Need a Permit for Airbnb in Memphis?

Yes. Short-term rental hosts in Memphis need the short-term rental permit from the City of Memphis, Division of Planning and Development (Develop901); Chapter 5-44 of the city code names the Division of Public Works as the permit authority. It costs $300 in the first year (A host with one rental pays $300 to apply and $150 each year to renew, per rental unit, before insurance and tax registrations.) and $150 a year to renew.^1,5,6

Who needs it: The owner of every home, apartment or accessory unit with no more than three sleeping rooms that is advertised or rented for stays of 29 nights or fewer. An owner with several rentals needs one permit for each. Rentals already operating before July 1, 2023 are exempt until the property is sold, transferred, idle for 30 continuous months or found in violation of generally applicable local law three or more times.^1,5,6
Issued by: City of Memphis, Division of Planning and Development (Develop901); Chapter 5-44 of the city code names the Division of Public Works as the permit authority
Valid for: 365 days from the date of issue; renew at least 30 days before expiry. The permit cannot be transferred to another person, entity or address, so a buyer must apply for a new one.
On listings: The number must appear on every listing
Platform checks: The code requires the permit number in every advertisement on a website, app or hosting platform. The city compares listings from more than 70 platforms with its permit records using monitoring software and flags listings that do not match a permit.

Fees

Fees
Fee	Amount	When
Application (new permit)Non-refundable fee paid when the application is filed; it covers applicant screening and the on-site inspection. Operating without the required permit means the fees are doubled when the permit is obtained.	$300	one-time
RenewalDue for each permit every 365 days; the renewal request must reach the city at least 30 days before the permit expires.	$150	annual

Who qualifies

The rental is a residential dwelling unit, or part of one, with no more than three sleeping rooms
The applicant is the owner: the title holder or the person or company in whose name the property tax bills are issued
The application includes a site plan drawn to scale, proof of ownership, and proof of fire, hazard and liability insurance of at least $1,000,000 per occurrence
The applicant certifies that each unit meets building, health and life safety codes and names a responsible party who lives or is located within 50 miles
The applicant is current on local property taxes for this and every other property they own in the city, has no unpaid short-term rental court fines, and has not had a similar permit denied, suspended or revoked in the last 365 days
The city code sets no owner-occupancy requirement and no night cap; a condominium or homeowners association can still prohibit rentals

How to apply

Confirm the rental has no more than three sleeping rooms, that you are the owner on the title, and that any condominium, homeowners association or lease allows short-term rental.
Gather a site plan drawn to scale, proof of ownership, proof of $1,000,000 per-occurrence liability insurance, the compliance verification form and the name and contact details of a responsible party within 50 miles.
Apply online through the Develop901 Citizen Portal and pay the $300 non-refundable application fee.
Allow for an on-site inspection, which the city may carry out before the permit is issued and before each renewal.
Add the permit number to every online listing and renew online through the same portal at least 30 days before the permit expires.

Applications go through the official application page .

Permit rules

A city permit is required to operate and to advertise: Memphis requires a short-term rental license (permit) to operate or advertise a short-term rental, in effect since July 1, 2023. The owner must hold it before the home is listed.^1,5 Applies to: Memphis · In force since July 1, 2023
$300 to apply, $150 to renew: The application fee is $300 and non-refundable. A renewal costs $150 for each permit, and each permit lasts 365 days.^1,5,6 Applies to: Memphis · In force since July 1, 2023
One permit for each rental unit: An owner of more than one short-term rental needs a separate permit for each, and each unit within a dwelling that is rented separately counts as its own rental.¹ Applies to: Memphis · In force since July 1, 2023
Show the permit number in every listing: Any advertisement or description of a short-term rental on a website, mobile app or hosting platform must display the permit number.¹ Applies to: Memphis · In force since July 1, 2023
Permit lasts 365 days and does not transfer: Each permit expires 365 days after it is issued and renewal requests must arrive at least 30 days earlier. The permit cannot be transferred or assigned to another person, entity or address.^1,5,6 Applies to: Memphis · In force since July 1, 2023
County and city business license: A host with $3,000 to $100,000 in rental receipts in a county or city needs a minimal activity license from the county and, where one applies, the city. At $100,000 or more, business tax registration and a business license are required.¹³
Advertised price must be the total price: Since May 12, 2025 a federal rule requires any advertised price for a short-term rental to show the total price, including mandatory fees; taxes and other government charges may be shown separately.^4,15 In force since May 12, 2025

Who can host

Who Can Host an Airbnb in Memphis, and Where

Tennessee state law applies on top of Memphis's own rules: the Tennessee short-term rental regulations page covers the state license and what cities and counties can and can't regulate.

No owner-occupancy requirement; companies can hold title: The code does not require the owner to live in the home. The owner can be a person, a group of people, a company, an association or a corporation named on the property tax bill, but the owner and not a tenant applies for the permit.¹ Applies to: Memphis · In force since July 1, 2023
Chapter 5-44 governs, not the rooming-house zoning rules: Short-term rentals are regulated by the short-term rental chapter of the city code and not by the rooming-house use standard in the Memphis and Shelby County Unified Development Code; the chapter itself sets no zone-by-zone list.¹ Applies to: Memphis · In force since July 1, 2023
HOAs, condos and landlords can still say no: State law does not stop a condominium, co-op or homeowners association from restricting short-term rentals in its governing documents, or a landlord from restricting them in a lease.¹¹ In force since May 17, 2018

Operating rules

Operating Rules for Memphis Short-Term Rentals

Rentals operating before July 1, 2023 are exempt for now: A home already used as a short-term rental by its owner before the ordinance took effect does not need the permit until it is sold, transferred, idle for 30 continuous months, or found in violation of generally applicable local law three or more times.^1,5,11 Applies to: Memphis · In force since July 1, 2023
Up to three sleeping rooms: A short-term rental can have no more than three sleeping rooms. The permit application states the maximum number of guests per night for each unit.¹ Applies to: Memphis · In force since July 1, 2023
Stays of 29 nights or fewer are short-term rentals: The city treats rentals of 1 to 29 days as short-term rentals. Renting to the same occupant for more than 30 continuous days falls outside the short-term rental rules.¹ Applies to: Memphis · In force since July 1, 2023
No paid occupancy under 24 hours: The owner may not accept payment for occupancy of a short-term rental for less than 24 hours.¹ Applies to: Memphis · In force since July 1, 2023
$1,000,000 liability insurance: The application needs proof of fire, hazard and liability insurance of at least $1,000,000 per occurrence, and the host keeps the insurance current for renewals.¹ Applies to: Memphis · In force since July 1, 2023
A responsible party within 50 miles: The owner names an adult person or business within 50 miles who will come to the property to answer noise, disorderly conduct, overcrowding, traffic or nuisance complaints. If that party does not show up, the permit can be suspended for up to 30 days.^1,6 Applies to: Memphis · In force since July 1, 2023
Post a contact and answer calls around the clock: The owner's or designee's name and telephone number must be posted inside the unit, and calls must be answered 24 hours a day, seven days a week during each rental period.¹ Applies to: Memphis · In force since July 1, 2023
Smoke alarms and carbon monoxide detectors: UL 217 smoke alarms are required in all sleeping areas and in every room along the route from the sleeping area to the exit door, and carbon monoxide detectors are required on every habitable floor.¹ Applies to: Memphis · In force since July 1, 2023
On-site inspection before issue and before renewal: City staff may inspect the property before a permit is issued and before a renewal; the application fee and the renewal fee cover the screening and inspection.¹ Applies to: Memphis · In force since July 1, 2023
Principal renter must be 18: The principal renter of a short-term rental must be at least 18 years old.¹ Applies to: Memphis · In force since July 1, 2023
Three court-found violations end the rental: The permit is revoked and the use is prohibited if the unit is found in violation of a generally applicable local law three or more separate times by a court because of how the rental operated, once appeals are over. The city carries the burden of proof.¹ Applies to: Memphis · In force since July 1, 2023
Repeated criminal incidents can make a property a nuisance: Under Tennessee's 2025 nuisance law, three or more unrelated incidents on one parcel within 24 months (36 months for property or juvenile charges), followed by written notice and a further incident, can lead to a nuisance finding. After an abatement order, one more incident is evidence of a nuisance per se and the court may award neighbors $1,000 to $50,000 in statutory damages.^3,9,17 In force since July 1, 2025

Taxes

How Much Are Airbnb Taxes in Memphis?

At least 11% on the nightly price and cleaning fee (7% state sales tax plus the 4% city room occupancy tax), plus the local sales tax of up to 2.75% and a $2.00 assessment for each room night.

11% in all, plus $2 a night

How the 11% on a Memphis stay splits between the taxes in the table below; the flat nightly fee comes on top

Median nightly rate, booked nights: $150
Taxes on that night (11% + $2): $19
Guest pays, before Airbnb and cleaning fees: $169

How Much Are Airbnb Taxes in Memphis?
Tax	Rate	Collected by
Tennessee state sales tax 7% of the nightly price plus cleaning and guest fees, for stays of 89 nights or fewer	7%^12,16	Airbnb
Local sales tax (Shelby County and Memphis) Between 1.5% and 2.75% of the same price, set by the county and city	—^12,16	Airbnb
Memphis short-term room occupancy tax 4% of the room charge, a privilege tax on the guest; operators who file and pay by the 20th of the month keep a 2% credit	4%^7,8,14,16	Airbnb
Memphis Tourism Improvement District assessment $2.00 for each paid occupied room night	$2 a night^1,7,18	Airbnb

Total on a stay 11% + $2 · All by Airbnb

At Memphis's median booked rate of $150 a night, the taxes collected on a booking come to about $19 a night.

What the host still handles

A Tennessee Department of Revenue sales tax account (Tennessee Taxpayer Access Point) for bookings made outside Airbnb or another marketplace
A City of Memphis Treasury account to file the Short-Term Room Occupancy Tax return by the 20th of each month, for direct bookings and any booking a platform does not collect
A minimal activity license ($3,000 to $100,000 in receipts) or a business license and business tax registration ($100,000 or more) with the county and, where one applies, the city^{7,8,12,13,14,16,18}

Fines

How to Avoid Airbnb Fines in Memphis

Fines in Memphis fall on hosting without the short-term rental permit, or outside the rules above. With it in hand and the rules followed, none of the fines below apply.

Operating or advertising without a permit: a fine of not more than $50 for each separate violation, and each day counts as a separate offense.^1,2
Each fine automatically carries an added penalty of up to $200, which a judge may waive.²
A rental found operating without the required permit pays double fees when the permit is later obtained, so the $300 application fee becomes $600.¹
Suspension and revocation: the permit can be suspended for up to 30 days if the responsible party does not appear, revoked for 12 months for a false statement on the application, and revoked after three court-found violations.¹
Unpaid city room occupancy tax: interest of 10% a year, a penalty of 1% for each month late, and a civil penalty of up to $200 for each willful failure to collect or remit the tax or for a knowingly false return.⁷
Nuisance case: after an abatement order and a further qualifying incident at the same parcel, a court may order statutory damages of $1,000 to $50,000 to neighbors who show a loss in property value, in addition to other remedies.^3,9

Changes

What's Changed in Memphis's Airbnb Rules

No change was scheduled when the rules were checked on October 17, 2026; the most recent are listed first.

October 8, 2026
Council adds a repeat-crime nuisance process for short-term rentals
On October 8, 2026 the Memphis City Council was reported to have passed Ordinance 5980, which adds a section on short-term rentals reported as public nuisances to the 2023 ordinance and applies Tennessee's 2025 nuisance law to them. The ordinance takes effect once it is signed and certified.^9,10,17
July 1, 2025
Tennessee's nuisance law for repeated crime takes effect
Public Chapter 510 of 2025 (House Bill 1050) took effect on July 1, 2025. It sets the notice and abatement process, and the $1,000 to $50,000 statutory damages, for properties with repeated criminal incidents.³
April 8, 2025
City hotel and motel occupancy tax rises to 4%
The City Council approved Ordinance 5937 on third reading on April 8, 2025, raising the hotel and motel occupancy tax to 4.0%. The city's 2026 short-term room occupancy tax form applies 4.0% to short-term rentals.^7,8
July 1, 2023
Permit required to operate and advertise
Ordinance 5856 took effect on July 1, 2023: new rentals need a permit ($300 to apply, $150 to renew) and the permit number must appear in listings. Rentals already operating before that date are exempt until sold, transferred or idle for 30 months.^1,5
March 21, 2023
City Council adopts the short-term rental ordinance
The Memphis City Council adopted Ordinance 5856 on March 21, 2023, setting the permit, insurance, safety and tax rules in Chapter 5-44 of the city code.^1,5

Listing data

What Memphis's Listings Show

AirROI, a short-term-rental data firm, counted 1,730 active Airbnb listings in Memphis over the 12 months to October 2026. 3% of them displayed a permit, license or registration number.

Minimum stay set on Memphis listings

Share of active listings by the shortest stay they accept

43%

33%

Minimum stay in numbers

Minimum stay set on Memphis listings
Shortest stay accepted	Share of listings
1 night	43%
2 nights	33%
3 nights	8%
4–6 nights	5%
7–29 nights	9%
30+ nights	3%

What officials report

198: Short-term rental addresses in the city's active permit dataset · as of February 2026A February 2026 presentation to the City Council counted 198 unique short-term rental addresses in the active permit dataset and 11 renewal records, against an estimated 1,300 to 3,000 listings in Memphis.⁶

Earnings

What Could a Memphis Short-Term Rental Earn?

The rules shape the numbers: a permit that costs $300 in the first year and taxes of 11% plus $2 a night that Airbnb adds to guests' bills. For a specific address, the Airbnb income calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a Memphis home could earn

FAQ

Memphis Airbnb Rules: Frequently Asked Questions

Is Airbnb legal in Memphis?

Yes. Memphis allows short-term rentals of 29 nights or fewer with a city short-term rental license (permit) in effect since July 1, 2023, and the city code does not require the owner to live in the home.^1,5

Do I need a permit for Airbnb in Memphis?

Yes. No one may operate or advertise a short-term rental without the owner first holding a city permit, with an exemption for homes already used as short-term rentals before July 1, 2023 until they are sold, transferred or idle for 30 months.^1,5,11

How much is the Memphis short-term rental permit?

The application fee is $300 and non-refundable, and each 365-day permit renews for $150. Operating without a permit first means the fees are doubled when the permit is obtained.^1,5,6

Can I rent a home I don't live in on Airbnb in Memphis?

Yes. The city code has no owner-occupancy requirement, and the owner can be a person, company, association or corporation named on the tax bill. Each property needs its own permit and no more than three sleeping rooms.¹

Does Airbnb collect hotel or occupancy tax in Memphis?

Yes. Airbnb collects the 7% state sales tax, local sales tax and all locally imposed occupancy taxes on Tennessee bookings, and the City of Memphis Treasury applies a 4% short-term room occupancy tax plus a $2.00 assessment per room night. A host still files with the city for bookings made outside a platform.^7,14,16

What is the lodging tax on an Airbnb stay in Memphis?

At least 11%: 7% state sales tax plus the 4% city room occupancy tax, with local sales tax of up to 2.75% and a $2.00 assessment for each room night on top.^7,12,16

What is the fine for hosting without a permit in Memphis?

A fine of up to $50 for each violation, with every day counting separately, plus an added penalty of up to $200. The fees double when the permit is later obtained, and the permit can be suspended or revoked.^1,2

Is there a limit on nights or bedrooms for an Airbnb in Memphis?

The city code sets no yearly cap on nights. A rental can have no more than three sleeping rooms, and paid occupancy for less than 24 hours is not allowed.^1,5

Do I have to show my permit number on my Airbnb listing in Memphis?

Yes. Any advertising or description of a short-term rental on a website, mobile app or hosting platform must display the permit number. The city compares listings on more than 70 platforms with its permit records.^1,5,6

What insurance and safety equipment does a Memphis Airbnb need?

Liability, fire and hazard insurance of at least $1,000,000 per occurrence, UL 217 smoke alarms in sleeping areas and along the exit route, carbon monoxide detectors on every habitable floor, and a responsible party within 50 miles.^1,6

Can a Memphis short-term rental lose its permit?

Yes. The permit can be suspended for up to 30 days if the responsible party does not appear, and revoked after three court-found violations. Under Tennessee's 2025 nuisance law, repeated criminal incidents can also lead to a nuisance finding and damages of $1,000 to $50,000.^1,3

Can my HOA or landlord ban Airbnb in Memphis?

Yes. Tennessee law does not stop a condominium, co-op or homeowners association from restricting short-term rentals in its governing documents, or a landlord from restricting them in a lease.¹¹

How many Memphis Airbnbs are registered?

Short-term rental addresses in the city's active permit dataset: 198 as of February 2026⁶. In AirROI's listing data, 3% of the 1,730 Memphis Airbnb listings active in the 12 months to October 2026 displayed a permit, license or registration number. A number on a listing shows the host entered one; it doesn't confirm the permit is valid.

How much does an Airbnb make in Memphis?

The average Memphis listing earned $20,600 in the 12 months to October 2026, according to AirROI, averaged across every active listing including those booked for only part of the year. The Memphis Airbnb market report breaks it down by month, property size and neighborhood.

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. Municode (Chapter 5-44 and Sec. 1-24-1) and the expanded FAQ answers on the Develop901 registration page were read in a browser.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the local authority has the final word on any application.

Listing figures come from AirROI's tracking of 1,730 active Memphis Airbnb listings over the 12 months to October 2026.

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

1. Chapter 5-44, Short Term Rental Ordinance · Municode Library, City of Memphis
2. Sec. 1-24-1, General penalty - Continuing violations · Municode Library, City of Memphis
3. HB 1050, Nuisances (Public Chapter 510) · Tennessee General Assembly
4. 16 CFR Part 464 - Rule on Unfair or Deceptive Fees · Electronic Code of Federal Regulations
5. Short-term Rental Registration · Memphis and Shelby County Division of Planning and Development (Develop901)
6. STR Compliance & Public Safety Support (presentation to the City Council, February 2026) · City of Memphis
7. Short-Term Room Occupancy Tax Form (2026) · City of Memphis Treasury Office
8. Minutes of the City Council meeting of April 8, 2025 · City of Memphis City Council
9. Ordinance to amend Ordinance No. 5856, Section 8-1 (public nuisance), Regular Agenda Documents, August 18, 2026 · City of Memphis City Council
10. City Council Meeting Agenda, October 6, 2026 · City of Memphis City Council
11. Summary of the Short-Term Rental Unit Act · UT Municipal Technical Advisory Service (MTAS)
12. Taxation of Short-Term Rental Units (June 2026) · Tennessee Department of Revenue
13. SUT-48 - Short-Term Rentals - Reporting Requirements · Tennessee Department of Revenue
14. Local Occupancy Tax · Tennessee Department of Revenue
15. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions · Federal Trade Commission
16. Occupancy tax collection and remittance by Airbnb in Tennessee · Airbnb Help Center
17. Memphis City Council passes strict penalties for short-term rentals tied to repeated criminal activity · Local Memphis, via Yahoo News
18. Airbnb, City of Memphis Reach Tax Agreement · Memphis Daily News