Investment Property Loans in Memphis, TN

Under Ordinance 5856, Memphis has required a license to operate or advertise a short-term rental since July 1, 2023, and registered rentals can be looked up on the Develop 901 Citizen Portal.

For investors: Before buying a Memphis house sold as a working Airbnb, search the portal for its license. The city uses the contact on file to resolve code violations, reach the owner in an emergency and schedule rental inspections, so update it right after closing.

Source: Memphis and Shelby County Division of Planning and Development (Develop 901), Short-term Rental Registry General Information, Oct 2026

Memphis charges a $300 nonrefundable application fee for each short-term rental permit; permits expire 365 days after issue and renew for $150 if the request arrives at least 30 days before expiration.

For investors: Budget the $300 per unit, because Memphis requires a separate permit for every rental unit, even within one dwelling. A rental found operating without a permit pays double fees when it finally applies, so license before taking the first booking.

Source: Memphis Code of Ordinances Ch. 5-44, Short Term Rental Ordinance (Ord. No. 5856, 3-21-2023), Municode Supplement 32, Sec. 5-44-5(D), (H), Oct 2026

A Memphis short-term rental may have no more than three sleeping rooms, and the application must show $1,000,000 per occurrence in fire, hazard and liability coverage plus a responsible party within 50 miles.

For investors: The city's registry FAQ reads this as three rooms used as bedrooms, so count only three when projecting nightly income on a larger Memphis house. Quote the coverage before closing and line up a local manager, since a no-show responsible party can trigger a suspension of up to 30 days.

Source: Memphis Code of Ordinances Ch. 5-44, Short Term Rental Ordinance (Ord. No. 5856, 3-21-2023), Municode Supplement 32, Secs. 5-44-1 and 5-44-5(C), Oct 2026

Memphis adds a $2 assessment per paid occupied room night and a 3.5% city privilege tax on short-term rental stays; a hosting platform with a city collection agreement remits them instead of the owner.

For investors: The flat $2 per occupied room night takes a bigger bite out of low nightly rates than premium ones, so build it into pricing. When a booking comes through a channel with no city collection agreement, the owner is liable for collecting and remitting the taxes directly.

Source: Memphis Code of Ordinances Ch. 5-44, Short Term Rental Ordinance (Ord. No. 5856, 3-21-2023), Municode Supplement 32, Sec. 5-44-4, Oct 2026

Memphis short-term rental permits cannot be transferred to another person, entity or address, and rentals that operated before the ordinance keep their exemption only until a sale or transfer, among other triggers.

For investors: Buying an operating Memphis rental means applying for a fresh permit in the buyer's name, with the city free to inspect first. Applicants must also be current on Memphis property taxes for every parcel they own, so clear any arrears before filing.

Source: Memphis Code of Ordinances Ch. 5-44, Short Term Rental Ordinance (Ord. No. 5856, 3-21-2023), Municode Supplement 32, Secs. 5-44-3 and 5-44-5(J), Oct 2026

The Shelby County Trustee's rate history shows the City of Memphis levying $2.58081 per $100 of assessed value for 2026, unchanged from 2025 and down from $3.1954 in 2024.

For investors: The city levy sits on top of the county's, so a Memphis rental carries both, while Germantown or Bartlett parcels pay their own city rates instead. Underwrite with the Shelby County Assessor's current appraisal rather than a seller's older bill.

Source: Shelby County Trustee, Memphis Tax Rates (historical City of Memphis tax rates 2005-2026), Oct 2026

Shelby County's 2026 rate for property inside Memphis is $2.702382 per $100 of assessed value, split among general fund, debt service and schools, compared with $2.69 in 2025.

For investors: This county levy is billed by the Shelby County Trustee, apart from the City Treasury's bill, so a Memphis rental gets two property tax bills a year. Confirm at closing that both were paid, and escrow or reserve for each separately.

Source: Shelby County Trustee, Shelby County Tax Rates (tax rate breakdown by year, 2010-2026), Oct 2026

Memphis city property taxes go delinquent on September 1, while Shelby County taxes go delinquent on March 1; both then accrue 1.5% interest a month on the unpaid tax.

For investors: Two delinquency dates six months apart mean two deadlines a year on one Memphis rental. Track both, because state law requires the Shelby County Trustee to sue on delinquent county real estate taxes, which adds court costs on top of the interest.

Source: Shelby County Trustee, Interest Rates (delinquency dates by taxing authority), Oct 2026

Memphis Housing Code Enforcement enforces Ordinance 5708, the city's adopted International Property Maintenance Code, and when the city demolishes a condemned structure the cost is assessed against the property's taxes.

For investors: A distressed Memphis rental can arrive with an open code case or a condemnation in progress. Check the address with code enforcement before closing, since the City Treasury also adds weed cutting, board-up, demolition and sanitation charges to city tax bills.

Source: City of Memphis, Code Enforcement, Oct 2026

MLGW's service policy lets qualifying rental owners avoid the connection service charge through its Owner's Reconnect Program, and bills three or more units on one water meter at general service rates.

For investors: Ask the MLGW Apartment Desk about Owner's Reconnect Program qualifications before the first turnover, since a qualifying owner can be exempted from the charge for turning service on. For a triplex or fourplex sharing one water meter, model water at the general service rate.

Source: Memphis Light, Gas and Water, 2025 Service Policy, Secs. 19.4.3 and 20.1, Oct 2026

The Memphis-Shelby County Airport Authority describes MEM as one of the busiest cargo airports in North America and the world, with FedEx its largest and most notable cargo operator.

For investors: Air cargo and the warehouses around the airport run overnight shifts, which supports steady renter demand in neighborhoods with quick drives to the airport area. Test the commute from a target street late at night, not only at rush hour.

Source: Memphis-Shelby County Airport Authority, Properties and Cargo, Oct 2026

The University of Memphis reports fall 2025 enrollment of 18,910 students and a workforce of about 2,500 employees, including more than 1,000 full-time faculty.

For investors: Rentals within a short drive of the main campus draw students, graduate assistants and university staff. Leases that start in August line up with the academic year and cut summer vacancy, a pattern worth pricing into any campus-area purchase.

Source: University of Memphis, Facts About the UofM, Oct 2026