Short-term rentals in Memphis, Tennessee: permit, insurance and enforcement

Memphis is a city-break market built on music and food: Graceland, Beale Street, the National Civil Rights Museum, Sun Studio and barbecue draw visitors all year, while St. Jude and the medical district bring families and professionals for longer stays. Event weekends and university sports add spikes. The rental stock is varied: historic homes in Midtown and Cooper-Young, lofts downtown and in the South Main arts district, and single-family houses in quieter neighborhoods.

The city permit

Since July 1, 2023, a Memphis ordinance has required a short-term rental permit for each unit, renewed every year. The main conditions are:

• proof of fire, hazard and liability insurance of at least $1 million;
• a responsible local agent living within 50 miles who can deal with issues;
• compliance with safety, building and health codes;
• the permit number shown on every listing.

There is no citywide cap and no owner-residency rule. Rentals operating before the ordinance were given legacy status, but, consistent with Tennessee's Short-Term Rental Unit Act, that protection lapses on sale or transfer, after 30 months without rental use or after repeated violations. HOAs and condominium boards remain free to restrict short stays.

Enforcement is tightening

In February 2026 the City Council adopted a resolution citing violence, unauthorized gatherings and disturbances at some rentals, and asked the administration to strengthen monitoring and deter repeat offenders. It did not change the rules, but it signals closer scrutiny, especially of party-prone listings.

Taxes

Guests pay Tennessee and local sales tax plus city and county hotel-motel taxes, and Memphis adds a per-bedroom nightly assessment. Airbnb collects these for its bookings; other channels and direct bookings may leave collection to you, so verify each platform. You also need city and county business licenses.

Our advice

In Memphis, the neighborhood matters more than the house. Choose streets where guests feel comfortable walking to dinner, set clear occupancy and no-party rules, use noise monitoring and screen bookings for local one-night stays around big events. Medical and relocation guests can fill weekdays with calmer, longer bookings. We study every request and tell you honestly whether and how we can help.

The Memphis calendar that fixes your peak nights

Elvis Week in August, around the anniversary of his death, and his birthday celebrations in January fill homes in Whitehaven near Graceland with fans who often return every year. Memphis in May brings crowds each spring, the AutoZone Liberty Bowl adds a winter football weekend, and the St. Jude Memphis Marathon in December fills the city with runners and their families, many of them connected to the hospital's work. Grizzlies games at FedExForum and University of Memphis sports keep downtown busy through the colder months.

The FedEx hub at Memphis International Airport is one of the region's largest employers and brings trainees, crew and contractors who prefer a kitchen to a hotel room.

Matching the home to the district

• Near Overton Park, the Memphis Zoo and Overton Square, families and couples look for a garden and off-street parking.
• Around Crosstown Concourse and the Broad Avenue Arts District, younger guests value walkability and good coffee more than square footage.
• Close to Shelby Farms Park and the Greenline, cyclists and runners appreciate bike storage and an early check-in option.
• Guests visiting the Stax Museum of American Soul Music or crossing the Big River Crossing on foot often combine several sites in a day, so a clear parking plan helps.

Summers are hot and humid here: we check air conditioning before June and keep a technician on call, since a failed unit in July is the quickest route to a refund request.