Airbnb City Guide: The Best Places To Invest in Memphis, Tennessee

Airbnb Rules and Regulations in Memphis, Tennessee

short-term rental operators in Memphis must obtain a permit from the City of Memphis Division of Public Works to legally run their Airbnb businesses. The initial permit application fee is $300; a $150 renewal fee is required annually. To qualify for a permit, hosts must provide proof of at least $1 million in fire, hazard, and liability insurance coverage, designate a local contact person who can respond to issues within 50 miles of the property, and follow all applicable building, health, and safety codes.

Permit holders are also required to display their permit number prominently on any STR listings or advertisements. Failure to comply with these regulations can result in fines of up to $50 per day per unit. While Memphis allows both owner-occupied and non-owner-occupied short-term rentals, hosts must collect and remit the city's occupancy privilege tax and a per-bedroom assessment to the city unless the platform collects on their behalf. These rules apply to all Memphis STR operators, except those in business before July 1, 2023, who are grandfathered in until the property is sold, transferred, or found violating local laws.

Memphis Airbnb Market Data:

• Average Revenue – $29.4K per year
• Average Daily Rate – $188 per night
• Average Occupancy Rate – 49%
• Average RevPAR – $93.3
• Average Home Prices – $144,347

1. Top Place to Invest in Memphis, Tennessee - Jackson

Located just east of downtown Memphis, the Jackson neighborhood offers a unique blend of urban convenience and suburban charm. This historic area has seen a resurgence in recent years, attracting residents and investors with its diverse housing options, thriving local businesses, and proximity to major attractions.

Jackson Airbnb Market Data

• Average Revenue – $27.9K per year
• Average Daily Rate – $192.2 per night
• Average Occupancy Rate – 50%
• Average RevPAR – $95.8

Convenience - 7/10

Jackson's central location provides easy access to downtown Memphis, major highways, and public transportation. The neighborhood boasts a variety of local shops, restaurants, and grocery stores, making it convenient for both residents and visitors. However, some areas of Jackson may require a car for optimal mobility.

Tourist Attractions - 6/10

While Jackson itself is not a major tourist destination, its proximity to downtown Memphis allows visitors to easily explore popular attractions such as Beale Street, the National Civil Rights Museum, and the Memphis Zoo. The neighborhood also features a few local points of interest, including the historic Elmwood Cemetery and the Memphis Botanical Garden.

Things to Do - 6/10

Jackson offers a mix of local events and activities, such as the annual Cooper-Young Festival and the weekly Memphis Farmers Market. The neighborhood also has several parks and green spaces, including Overton Park and the Shelby Farms Greenline. However, Jackson may have fewer entertainment options compared to other areas of Memphis.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Jackson is $185,000, which represents a 4.2% appreciation over the past year. This price point is relatively affordable compared to other neighborhoods in Memphis, making it an attractive option for investors. However, home values can vary significantly depending on the specific location and condition of the property.

Proximity to Work-Related Travel - 8/10

Jackson's central location makes it convenient for work-related travel, with easy access to major hospitals, convention centers, and sports venues. The neighborhood is just a short drive from the Memphis Medical District, the Memphis Cook Convention Center, and the FedExForum.

X-Factor - 7/10

Its unique blend of historic charm and modern revitalization sets Jackson apart. The neighborhood features a mix of architectural styles, from Victorian-era homes to mid-century bungalows, giving it a distinctive character. Additionally, Jackson has seen an influx of young professionals and families in recent years, contributing to a vibrant and diverse community.

2. Top Place to Invest in Memphis, Tennessee - Midtown

Midtown, a vibrant and eclectic neighborhood just east of downtown Memphis, offers a unique blend of history, culture, and modern amenities. With its diverse population, thriving arts scene, and proximity to major attractions, Midtown has become an increasingly popular location for establishing Airbnb businesses.

Midtown Airbnb Market Data

• Average Revenue – $30.2K per year
• Average Daily Rate – $181.8 per night
• Average Occupancy Rate – 54%
• Average RevPAR – $96.2

Convenience - 8/10

Midtown's central location provides easy access to various parts of the city. The neighborhood boasts a walk score of 89 and a bike score of 53, making it convenient for residents to run errands on foot or by bicycle. Midtown also offers a variety of local shops, restaurants, and grocery stores, catering to the daily needs of its inhabitants.

Tourist Attractions - 7/10

While not primarily a tourist hotspot, Midtown is home to several notable attractions. Overton Park, a sprawling urban green space, features the Memphis Zoo, Brooks Museum of Art, and the Memphis College of Art. The historic Overton Square Entertainment District and Cooper-Young Historic District offer a variety of dining, shopping, and nightlife options.

Things to Do - 8/10

Midtown boasts a diverse array of activities for residents and visitors. The neighborhood hosts annual events like the Cooper-Young Festival, which draws over 120,000 attendees. Overton Park provides ample opportunities for outdoor recreation, while the Levitt Shell amphitheater hosts free live music events. Midtown's thriving arts scene includes galleries, theaters, and live music venues.

Average Home Prices - 7/10

According to Zillow, the average home value in Midtown as of February 2024 is $134,265, reflecting a 6.6% decrease over the past year. The median sale price in January 2024 was $280,000, an 18.8% decline compared to the previous year. While the recent depreciation may concern some investors, the relatively affordable prices and potential for long-term appreciation make Midtown an attractive option.

Proximity to Work-Related Travel - 9/10

Midtown's strategic location offers easy access to major employment centers. The neighborhood is just minutes away from the Memphis Medical District, which includes several hospitals and healthcare facilities. Downtown Memphis, home to the Memphis Cook Convention Center and FedExForum, is also easily accessible. This proximity makes Midtown an ideal location for professionals working in these areas.

X-Factor - 8/10

What sets Midtown apart is its unique character and diverse community. The neighborhood's rich history is reflected in its architecture, ranging from Victorian-era homes to mid-century bungalows. Midtown's vibrant arts scene and its mix of independent shops and restaurants create a distinctive atmosphere that appeals to both residents and visitors. Several colleges and universities also contribute to the area's youthful and dynamic vibe.

3. Top Place to Invest in Memphis, Tennessee - Downtown

The heart of the Bluff City, Downtown Memphis is a vibrant, bustling area that seamlessly blends history, culture, and modern amenities. With its iconic attractions, thriving business district, and diverse entertainment options, Downtown Memphis offers a unique and exciting opportunity for short-term rental investors.

Downtown Airbnb Market Data

• Average Revenue – $40K per year
• Average Daily Rate – $349.8 per night
• Average Occupancy Rate – 37%
• Average RevPAR – $131.8

Convenience - 9/10

Downtown Memphis boasts an impressive walk score of 89 and a bike score of 53, making it easy for residents and visitors to navigate the area without relying on a car. The neighborhood is home to numerous local shops, restaurants, and grocery stores, such as South Point Grocery, ensuring that all essential needs are met within walking distance.

Tourist Attractions - 8/10

From the legendary Beale Street to the National Civil Rights Museum, Downtown Memphis is packed with iconic attractions that draw visitors from around the world. The area also features several museums, including the Memphis Rock 'n' Soul Museum and the Blues Hall of Fame, showcasing the city's rich musical heritage. Additionally, the Peabody Hotel's famous duck march and the Mississippi Riverfront provide unique experiences for tourists.

Things to Do - 9/10

Downtown Memphis offers eclectic activities and events for all ages and interests. Visitors can explore the historic Beale Street, with its lively music clubs and restaurants, or take a stroll through the South Main Arts District, which hosts monthly art walks and features galleries, shops, and eateries. The area also boasts several parks, including Tom Lee Park and the Mississippi River Park, perfect for outdoor recreation.

Average Home Prices - 7/10

According to Zillow, the median home value in Downtown Memphis as of February 2024 is $228,000, a 27.8% decrease compared to the previous year. While this depreciation may concern some investors, the relatively affordable prices and potential for long-term appreciation make Downtown Memphis an attractive option for those looking to enter the short-term rental market.

Proximity to Work-Related Travel - 9/10

Downtown Memphis is the city's central business district, making it an ideal location for professionals to attend conferences or meetings. The Memphis Cook Convention Center and the FedEx Forum are both located in the heart of Downtown, while the Memphis Medical District is just a short drive away. This proximity to major work-related destinations makes Downtown Memphis a prime spot for Airbnb and short-term rental investments.

X-Factor - 9/10

Its unparalleled blend of history, culture, and modern amenities sets Downtown Memphis apart. The area's rich musical heritage, evident in its numerous live music venues and museums, stunning architecture and thriving arts scene, creates a unique atmosphere that appeals to both residents and visitors alike. The ongoing revitalization efforts, such as the Main Street Trolley and the development of new residential and commercial spaces, further contribute to Downtown Memphis's desirability as an investment opportunity.

4. Top Place to Invest in Memphis, Tennessee - Depot

Nestled in the heart of Memphis, the Depot neighborhood is a hidden gem that has been steadily gaining attention from investors and residents alike. With its rich history, convenient location, and unique charm, this up-and-coming area offers a promising opportunity for those looking to enter the Airbnb and short-term rental market.

Depot Airbnb Market Data

• Average Revenue – $25.1K per year
• Average Daily Rate – $179.6 per night
• Average Occupancy Rate – 44%
• Average RevPAR – $78.4

Convenience - 7/10

The Depot neighborhood's central location provides easy access to major highways and public transportation, making it convenient for both residents and visitors to navigate the city. While the area boasts a growing number of local shops and restaurants, it may not have the same level of walkability as some other Memphis neighborhoods.

Tourist Attractions - 6/10

Although the Depot neighborhood itself is not a major tourist destination, its proximity to downtown Memphis allows visitors to easily explore popular attractions such as Beale Street, the National Civil Rights Museum, and the Memphis Zoo. The area's historic architecture and unique character also appeal to those seeking a more authentic Memphis experience.

Things to Do - 6/10

The Depot neighborhood offers a mix of local events and activities, such as the annual Depot District Street Festival and the weekly Memphis Farmers Market. The area also features several parks and green spaces, providing opportunities for outdoor recreation. However, compared to more established neighborhoods in Memphis, the Depot may have fewer entertainment options.

Average Home Prices - 8/10

According to Zillow data for 2024, the median home value in the Depot neighborhood is $165,000, which represents a 5.8% appreciation over the past year. This relatively affordable price point and the potential for further appreciation as the area continues to develop make the Depot an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 7/10

The Depot neighborhood's central location provides convenient access to major employment centers, such as the Memphis Medical District and the downtown business district. However, it may not be as ideally situated as some other neighborhoods for those primarily focused on work-related travel.

X-Factor - 8/10

What sets the Depot neighborhood apart is its unique blend of history, character, and potential for growth. The area's historic architecture, including several former industrial buildings that have been repurposed into residential and commercial spaces, gives it a distinctive charm that appeals to both residents and visitors. Additionally, the ongoing revitalization efforts and increasing investment in the neighborhood suggest that the Depot is poised for further development and appreciation in the coming years.

5. Top Place to Invest in Memphis, Tennessee – Quince

Located in the heart of East Memphis, Quince is a charming and well-established neighborhood that offers a perfect blend of suburban tranquility and urban convenience. With its tree-lined streets, spacious homes, and proximity to major attractions, Quince has become an increasingly popular destination for families, professionals, and investors alike.

Quince Airbnb Market Data

• Average Revenue – $37.1K per year
• Average Daily Rate – $211.3 per night
• Average Occupancy Rate – 58%
• Average RevPAR – $123.4

Convenience - 7/10

Quince's central location in East Memphis provides easy access to major highways, shopping centers, and restaurants. The neighborhood boasts a variety of local amenities, including grocery stores, pharmacies, and coffee shops, making it convenient for residents to run errands and meet their daily needs. However, the area may not be as walkable as some other Memphis neighborhoods, and a car is often necessary for getting around.

Tourist Attractions - 5/10

While Quince itself is not a major tourist destination, its proximity to other popular attractions in Memphis makes it a convenient base for exploring the city. Visitors can easily access destinations such as Graceland, the Memphis Zoo, and the Pink Palace Museum, all of which are within a short drive from the neighborhood.

Things to Do - 6/10

Quince offers a range of local activities and events for residents and visitors to enjoy. The neighborhood is home to several parks and green spaces, including the Quince Dog Park and the Audubon Park, which provide outdoor recreation and relaxation opportunities. Additionally, the nearby Laurelwood Shopping Center and Oak Court Mall offer a variety of shopping and dining options.

Average Home Prices - 7/10

According to Zillow data for 2024, the median home value in Quince is $325,000, representing a 3.2% appreciation over the past year. While this price point may be higher than some other Memphis neighborhoods, the relatively stable appreciation rate and the area's desirable location make it an attractive option for Airbnb and short-term rental investors.

Proximity to Work-Related Travel - 6/10

Quince's location in East Memphis provides convenient access to several major employment centers, including the FedEx World Headquarters and the Memphis International Airport. However, the neighborhood may not be as ideally situated for those primarily focused on work-related travel to downtown Memphis or the Medical District.

X-Factor - 7/10

Its unique combination of suburban charm and urban convenience sets Quince apart. The neighborhood's well-maintained homes, mature trees, and quiet streets create a peaceful and inviting atmosphere that appeals to both residents and visitors. At the same time, Quince's proximity to major attractions, shopping centers, and restaurants ensures that there is always something to do or explore nearby. This balance of tranquility and accessibility makes Quince a desirable location for Airbnb and short-term rental investments.