Do you need a permit to run an Airbnb in Memphis?

Yes. Memphis requires Short Term Rental Property Permit, and the fee is $300. Memphis requires a Short Term Rental Property Permit for every unit rented for under 30 days: a $300 application fee, $150 annual renewal, $1,000,000 liability insurance, and the permit number displayed in every listing. There is no owner-occupancy rule, night cap, or per-owner unit cap, and STRs are allowed citywide, with operators active before July 1, 2023 grandfathered under Tennessee state law. Guests pay 7% state sales tax, 2.75% Memphis local sales tax, a 5% Shelby County occupancy tax, a 3.5% city STR privilege tax, plus a flat $2.00 per occupied room night city assessment.

How much does a short-term rental permit cost in Memphis?

The Short Term Rental Property Permit fee in Memphis is $300, renewed annual. Non-refundable $300.00 application fee per unit (covers applicant screening and on-site inspection); $150.00 annual renewal fee. Properties found operating without a permit are subject to double fees when permits are obtained. The city's registry program (develop901.com/strr) brands the process 'Short-term Rental Registration'. An older 2016 ordinance (No. 5631) carried a $75 fee but was superseded by Ordinance 5856 effective July 1, 2023.

How to get a short-term rental permit in Memphis, TN (2026)

Memphis requires Short Term Rental Property Permit — the fee is $300, renewed annual. Here's how to get and keep it.

Permit at a glance

Permit required	Yes
Permit name	Short Term Rental Property Permit
Permit fee	$300
Renewal	Annual

Step by step

1
Confirm your property is eligible
Confirm the property's zoning allows short-term rentals. STRs are permitted citywide in residential dwellings (the ordinance defines an STR as a residential dwelling unit with not more than three sleeping rooms rented for transient occupancy; stays over 30 continuous days, B&Bs, boarding houses, hotels and motels are excluded). Ordinance 5856 expressly removes STRs from the rooming-house zoning rules of Section 2.5.2 of the Memphis and Shelby County Unified Development Code, and the city code contains no zone-by-zone prohibitions or overlay districts for STRs. Per T.C.A. 13-7-603, properties operating as STRs before the July 1, 2023 effective date are grandfathered and exempt from the permit requirement until sold, transferred, out of STR use for 30 continuous months, or found in violation of local law three or more times.
2
Apply for the Short Term Rental Property Permit
Submit the Short Term Rental Property Permit application to Memphis and pay the $300 fee. Non-refundable $300.00 application fee per unit (covers applicant screening and on-site inspection); $150.00 annual renewal fee. Properties found operating without a permit are subject to double fees when permits are obtained. The city's registry program (develop901.com/strr) brands the process 'Short-term Rental Registration'. An older 2016 ordinance (No. 5631) carried a $75 fee but was superseded by Ordinance 5856 effective July 1, 2023.
3
Register for occupancy taxes
Register to collect and remit the applicable lodging/occupancy taxes for Memphis. Some are collected automatically by the booking platform and some you may need to remit yourself.
4
Renew on schedule
The permit renews annual — set a reminder so it never lapses, since operating on an expired permit typically triggers fines.

STR rules change without warning.

Get an email the moment Memphis changes its short-term rental rules — plus renewal reminders before your permit expires.

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Verified July 21, 2026. Informational only — not legal, tax, or financial advice. Permit requirements and fees change; confirm current requirements with Memphis before applying.

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