6 Best Places to Buy Short-Term Rentals in Memphis (2026)

According to Chalet Data, Memphis stands out nationally for short-term rental returns, with gross yields ranging from 16.4% to an eye-popping 39.3% across its top neighborhoods. The city’s best-performing areas cluster in both its central core and southern districts, where home values remain accessible, most under $150,000, and guest demand is powered by a blend of music tourism, local employers, and affordable family options.

Over the past year, Memphis saw a sharp 31% jump in occupancy and a 20% rise in nightly rates, even as home prices dipped. That combination means faster payback periods and a rare shot at double-digit yields in a major city. If you’re looking for a market with both momentum and deep value, Memphis is hard to match.

The Best Memphis Neighborhoods for Airbnb, Ranked by Yield

Data as of July 11, 2026. Annual revenue is calculated for each neighborhood as median ADR × occupancy × 365, using trailing 12-month data, and reflects gross revenue before expenses. The table reports the median listing’s revenue, with median ADR and occupancy shown independently. Multiplying ADR by occupancy will not reproduce the revenue figure.

Gross yield divides median revenue by the median home value (Zillow ZHVI). For full methodology, see /methodology. The headline revenue averages all listings, while the active-operator benchmark filters for listings with real, sustained booking activity, this is the figure buyers should use for underwriting.

1. Greater Whitehaven Economic Development Corp: Memphis’s Top-Yield Powerhouse

Price-conscious investors will note Greater Whitehaven Economic Development Corp’s rare blend of affordability and performance, with a median home value of $117,747 and a gross yield of 39.3%, the highest among 501 US short-term rental markets and more than quadruple the national median. Occupancy demonstrates resilience across the calendar, peaking at 69% in August when summer demand surges, and maintaining a respectable 44% even in December’s off-season, which supports a nearly even seasonal revenue mix (summer 27%, winter 26%).

Momentum remains strong as the area’s average daily rate has soared 40% year-over-year to $212, while occupancy has climbed 5% despite a 19% reduction in listings, tightening supply and enabling rate growth. This dynamic, paired with robust annual active-operator revenue of $44,067, yields a rapid 2.7-year payback period, one of the quickest in the country, making underwriting especially attractive.

Whitehaven’s enduring appeal stems from its proximity to Graceland, Memphis International Airport, and major highways, driving steady streams of both leisure and business guests and sustaining high occupancy even as home values dip. For deeper analytics, the Greater Whitehaven analytics page offers bedroom-level returns and detailed seasonality insights.

Who this market is ideal for: Buyers seeking maximum yield and rapid payback in a market with strong tourism and airport access.

2. Center City Development Corporation: Downtown Affordability with Urban Demand

Price-driven investors will find Center City Development Corporation’s median home value of $86,581 among the lowest in the country, a factor that drives its exceptional 31.0% gross yield, ranking in the 99th percentile nationwide and far above the US median of 9.0%. The area’s urban density supports year-round bookings, with occupancy rates peaking at 52% in September and dipping to 32% in January, reflecting strong fall demand and a softer winter typical for downtown markets.

Momentum remains robust, as occupancy surged by 49% year-over-year and average daily rates rose 9% in June 2026, while listing counts held steady, signaling that demand growth is not simply due to reduced supply. The 235 full-time listings offer investors a large, active pool and a payback period of just 3.4 years on active-operator revenue, making rapid capital recovery realistic for those underwriting deals.

The dominance of 1-bedroom units suits short-stay urban travelers, but 3-bedrooms command the highest earnings, rewarding those who can provide larger accommodations in this walkable central location. For a closer look at property type performance, see the Center City analytics dashboard.

Who this market is ideal for: Investors prioritizing low acquisition costs and consistent downtown demand.

3. Midtown Memphis Development Corp: High Occupancy Meets Classic Memphis Appeal

Data-driven investors will notice Midtown Memphis Development Corp’s gross yield of 24.2% sits in the 98th percentile nationally, far surpassing the US median of 9.0%. The neighborhood’s occupancy rate averages 57%, with a pronounced spring peak at 67% in May and a softer trough of 50% in October, reflecting strong demand during event-heavy months and steady bookings through the rest of the year. For detailed analytics and trends, see the Midtown Memphis analytics page.

These patterns help explain why median annual revenue reaches $32,297, despite an average daily rate ($138) that remains well below the national median, making this market highly efficient for revenue generation relative to property price.

Momentum in the past year has been robust, with June occupancy up 41% and ADR rising 26%, signaling that both demand and pricing power are on the upswing as more guests seek out the area’s historic homes and cultural amenities. The active-operator revenue ($31,165) closely tracks the headline figure, indicating that hands-on hosts are capturing nearly all the market’s potential.

With a payback period of just 4.3 years, underwriting here benefits from a rare combination of affordable home values (median $133,333, down 10.6% YoY) and a diverse bedroom mix, where both 1-bedroom and 4-bedroom properties deliver strong returns. This dynamic is driven by the area’s appeal to families, longer-stay guests, and arts-focused travelers, all drawn by Midtown’s classic Memphis character and proximity to Overton Park.

Who this market is ideal for: Buyers seeking a balance of occupancy, price, and classic Memphis guest appeal.

4. Binghampton Development Corp: Larger Homes, Strong Revenue Upside

Revenue patterns in Binghampton Development Corp reflect a market where spring and summer drive the bulk of bookings, with spring accounting for 29% and summer for 27% of annual revenue. Occupancy surges in June to 66%, well above the US median of 45%, while January sees a pronounced dip to 36%, underscoring the importance of seasonally tailored pricing and marketing. For a full breakdown of returns, see the Binghampton analytics dashboard.

The area’s ADR sits at $156, below the US median, but high occupancy and steady demand from families and groups seeking 2-bedroom homes (21 listings, $22,615/yr, $162 ADR) help sustain strong returns.

Year-over-year momentum is robust, with occupancy up 53%, ADR up 23%, and listings rising 13%, signaling both growing demand and supply. The gross yield of 19.6% places Binghampton in the 96th percentile nationally, while the active-operator payback period of about 5.3 years balances higher entry costs against headline revenue of $37,793.

With 49 full-time listings, the neighborhood offers a competitive environment where larger homes command revenue premiums, making it an attractive option for investors prioritizing scale and upside in a top-performing US market.

Who this market is ideal for: Investors targeting larger homes and higher total revenue, willing to pay for stronger upside.

5. Central Gardens Association: Historic Charm with Softening Demand

Revenue patterns in Central Gardens Association highlight a market where seasonality plays a defining role, with occupancy surging to 65% in September before plunging to just 29% in February. This pronounced swing shapes the area’s annual revenue flow, as spring delivers the strongest quarter (30% of yearly revenue) while winter lags behind at 24%, making income predictably uneven across the year.

The 17.9% gross yield places Central Gardens firmly in the 95th percentile nationwide, far outpacing the US median of 9.0%, though the area’s average daily rate of $127 remains notably below the national median of $232.

Recent data reveals softening demand. June 2026 saw occupancy decline by 15% year over year even as daily rates climbed 16%, and the number of listings fell by 9%. These shifts suggest operators are raising prices to offset weaker booking volume, a strategy that may hold in a market with only 35 active full-time listings and a concentration of 1-bedroom properties. For more insights, visit the Central Gardens analytics dashboard.

The typical payback period stands at 5.6 years at current revenue levels, a figure that reflects both the market’s attractive entry price and the need for careful underwriting given recent volatility.

Who this market is ideal for: Buyers interested in historic districts and willing to navigate seasonal swings.

6. University Neighborhoods Development Corp: Student-Driven Demand and Steady Growth

Spring surges in University Neighborhoods Development Corp, with occupancy hitting 66% in May and spring capturing 30% of annual revenue, while January’s 32% low marks the academic off-season. This cyclical flow is shaped by university schedules, drawing consistent family and student stays but also producing pronounced winter slowdowns. For a full analytics breakdown, see the University Neighborhoods analytics page.

With a median occupancy of 50%, the area outperforms the US median of 45%, though its average daily rate of $153 sits well below the national median of $232, making it a value-driven choice for guests and investors alike.

Active full-time listings rose 18% year-over-year, and occupancy jumped 29%, signaling that supply growth has not outpaced demand. The typical payback period of 6.3 years, calculated from active-operator gross revenue, is on the longer side for Memphis but reflects solid stability in returns.

The dominance of 2-bedroom properties (21 listings) at a $155 ADR and $23,875 annual revenue suggests a sweet spot for families visiting students, reinforcing the area’s resilience and steady growth.

Who this market is ideal for: Investors looking for steady, student-driven demand and moderate long-term growth.

How to read these rankings before you buy

Gross yield is a powerful first filter for short-term rental markets, but it doesn’t capture the full picture. The headline annual revenue shown here averages all listings, regardless of how active they are. For a more realistic underwriting baseline, focus on the active-operator revenue, which filters for properties with sustained booking activity. Even in high-yield neighborhoods, individual property performance can vary based on amenities, property type, and management quality.

These rankings reflect median outcomes, not guarantees. Seasonality, local regulations, and shifts in guest demand can all impact returns. Always verify numbers at the property level, and consider how your intended operating style matches the local guest base and calendar. Use these rankings to narrow your search, but diligence on the ground is essential for a successful purchase.

How to Act on This

Buying a short-term rental in Memphis means weighing several practical factors. Neighborhoods with the highest yields often have lower home values, but may also see more volatility in occupancy or require more hands-on management. Areas near universities or major attractions tend to offer steadier demand, but competition can be higher and regulations may shift over time.

Memphis requires all short-term rental operators to verify current local rules, as permitting and zoning requirements can change. The city’s tax environment is generally favorable, with a property tax rate of 1.03%, but always confirm the latest obligations before closing. Pay attention to the seasonality of each neighborhood, some areas see strong summer peaks, while others are driven by academic or event calendars.

Align your property type and amenities with what’s in demand locally, whether that’s family-sized homes near Graceland or compact units downtown. For tailored guidance, connect with a Memphis short-term rental agent who understands the city’s evolving landscape and can help you navigate both opportunity and risk.