Memphis Airbnb Rules & Investment Guide (2026)

Treat the City permit as the first underwriting gate. Memphis requires a short-term rental license before an owner operates or advertises a covered residential unit; Chapter 5-44 uses the term permit for that approval. The permit does not replace parcel, building, fire, tax, insurance, or private-document review. Confirm that the exact address and operating model fit Chapter 5-44 before pricing revenue or signing a nonrefundable contract.

• Confirm that the address lies inside Memphis city limits and is governed by the City process.
• Verify that the dwelling and sleeping-room configuration fit the ordinance and existing approvals.
• Do not advertise or accept bookings before the City issues the property-specific STR license or permit.
• Treat association, lease, lender, and insurance restrictions as separate approval gates.

Match the property to the correct government before filing. A property inside Memphis uses the City STR license process through Develop901. The Shelby County STR permit applies to unincorporated county property, not as a substitute for the Memphis permit. Municipal boundaries, parcel records, and mailing addresses do not always align, so document the jurisdiction for the exact parcel.

• Confirm municipal boundaries for the parcel instead of relying on a Memphis mailing address.
• Use the Memphis Chapter 5-44 license and permit process for property inside the City.
• Use the Shelby County STR process for unincorporated property after confirming county jurisdiction.
• Ask the County Clerk about county business registration and the City about any separate municipal business license.

Verify lawful ownership, dwelling status, and private authority before submitting the application. The City asks for proof of ownership, a scaled site plan, maximum transient capacity, current property taxes, insurance, and a compliance certification. A City permit does not override a deed restriction, condominium declaration, homeowners-association rule, lease, loan covenant, or insurance exclusion.

• Match the application to the legal owner, parcel, units, structures, and approved sleeping rooms.
• Review deeds, declarations, bylaws, rules, leases, and loan documents for rental restrictions.
• Obtain fire, hazard, and liability coverage of at least $1 million per occurrence.
• Resolve delinquent local property taxes before filing.

Submit a separate application for each STR property or unit through the Develop901 Citizen Portal. The ordinance lists a $300 nonrefundable initial application fee and a $150 annual renewal fee. A permit expires 365 days after issuance, and the renewal request must reach the City at least 30 days before expiration. Public Works may inspect the property before issuance or renewal.

• Create the portal filing with ownership proof, scaled site plan, capacity, insurance, and compliance documents.
• Disclose qualifying citations from the prior 12 months and acknowledge the ordinance requirements.
• Complete any requested inspection and correct building, health, fire, or life-safety issues.
• Calendar renewal more than 30 days before the permit expiration date.

Build the permit conditions into every listing and operating procedure. The permit number must appear in platform and other advertisements. The application must identify a responsible party located within 50 miles who can appear at the property for noise, disorderly conduct, overcrowding, traffic, or nuisance complaints. Guest capacity should match the approved application and lawful property conditions.

• Publish the City permit number in every online and offline advertisement.
• Keep the responsible party information current and notify the City before a replacement takes responsibility.
• Give guests written capacity, parking, waste, noise, event, smoking, and emergency rules.
• Maintain alarms, exits, utilities, address visibility, and other approved safety conditions.

Memphis reported active outreach, registration review, inspections, and monitoring in its June 2026 STR process update. Complaints can prompt a registration check, a citation for an unregistered property, referrals to other agencies, and follow-up inspection. A responsible party who fails to appear timely can trigger notice and a permit suspension of up to 30 days. Repeated or serious violations can place continued operation at risk.

• Respond immediately to noise, disorder, overcrowding, traffic, nuisance, and safety complaints.
• Keep complaint records, response times, corrective actions, and agency communications.
• Do not continue advertising after expiration, suspension, or revocation.
• Recheck permit status in the public Develop901 permit search before acquisition and renewal.

Model State, County, and City obligations separately. Tennessee taxes short stays under its sales-tax rules, including mandatory guest charges. Shelby County publishes a 5% room occupancy tax. The current 2026 Memphis short-term room form applies a 4% City occupancy tax and a $2 assessment per paid occupied room night. Marketplace collection can change who remits a tax, but it does not eliminate the need to verify registration, returns, and uncovered direct bookings.

• Confirm the Tennessee state and local sales-tax rate for the property address.
• Register and file City and County occupancy obligations not fully handled by a marketplace.
• Reconcile marketplace reports to direct-booking receipts and every required return.
• Ask a Tennessee tax professional how business, franchise, and excise rules apply to the ownership structure.

Underwrite only the operation supported by the City permit, property record, private documents, insurance, and tax setup. Replace unsourced citywide revenue claims with address-specific nightly-rate, available-night, and occupancy assumptions. Include application and renewal fees, inspections, corrective work, local response, insurance, taxes, utilities, cleaning, maintenance, management, and reserves.

• Do not count revenue before the permit and property review are complete.
• Stress-test lower demand, tax leakage, repairs, complaint response, and permit interruption.
• Verify whether the proposed guest capacity is both lawful and operationally realistic.
• Compare the STR case with lawful mid-term and long-term alternatives.

Route each issue to the office that controls it. Develop901 and the Memphis and Shelby County Division of Planning and Development handle City STR registration and zoning questions. Memphis Finance handles the City short-term room occupancy return. The Shelby County Clerk handles county occupancy and business-tax questions, while the Tennessee Department of Revenue handles State sales, occupancy, business, franchise, and excise guidance.

• Develop901: City registration, permit search, application status, and zoning questions.
• Memphis Finance at 901-522-1111: City occupancy-tax forms and filing questions.
• Shelby County Clerk: county occupancy tax and business registration.
• Tennessee Revenue: State tax accounts, marketplace collection, and filing duties.

After City eligibility is confirmed, plan a Memphis property strategy call around the permit file, parcel, and operating assumptions.

Official City, County, and State materials checked September 28, 2026. Memphis requires a City STR license before operating or advertising; Chapter 5-44 calls that approval a permit. The current materials also document permit monitoring, City and County lodging taxes, Tennessee tax duties, and separate rules for unincorporated Shelby County. Confirm the parcel, current forms, fees, and portal instructions before acting.

• Memphis short-term rental registration
• Memphis Code Chapter 5-44 short-term rentals
• Memphis 2026 STR monitoring process update
• Memphis 2026 short-term room occupancy tax return
• Shelby County room occupancy taxes
• Tennessee short-term rental tax manual
• Tennessee local occupancy tax rates
• Shelby County business tax registration