Introduction

Investing in rental properties can be a lucrative venture when done correctly. The key to success lies in identifying properties that promise a good return on investment (ROI), consistent demand, and potential for appreciation. A crucial factor in this equation is the location of the property. A well-located property can attract quality tenants, maintain high occupancy rates, and increase in value over time.

Shelby County, TN, with its rich cultural heritage, vibrant economy, and diverse communities, offers a variety of promising neighborhoods for rental property investment. In this guide, we will explore the best areas in Shelby County for rental properties, evaluating them based on several criteria: convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel (hospitals, convention centers, sports venues), and the 'x-factor'—what makes each area unique and desirable.

Best Neighborhoods and Areas in Shelby County, TN

1. Midtown Memphis

Grades:

• Convenience: A
• Tourist Attractions: B+
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: A
• X-Factor: A

Convenience:
Midtown Memphis is centrally located, providing easy access to major highways and public transportation. Its central location makes commuting to different parts of the city convenient for residents.

Tourist Attractions:
Midtown is home to Overton Park, which houses the Memphis Zoo, the Memphis Brooks Museum of Art, and the Levitt Shell. These attractions draw both locals and tourists, enhancing the area’s appeal.

Things to Do:
The neighborhood boasts a vibrant arts scene, numerous restaurants, and nightlife options. Cooper-Young, a popular district within Midtown, is known for its eclectic mix of shops, bars, and eateries.

Average Home Prices:
The average home prices in Midtown are moderately high, but the area's desirability ensures a steady appreciation rate. Investors can expect a good ROI due to strong rental demand.

Return on Investment:
Midtown’s popularity among young professionals and families translates to high rental demand and favorable rental rates. The area’s property values have shown consistent growth, making it a solid investment choice.

Proximity to Work-Related Travel:
Midtown is close to major hospitals like Methodist University Hospital and Le Bonheur Children's Hospital, as well as the Memphis Cook Convention Center. This proximity makes it ideal for healthcare professionals and business travelers.

X-Factor:
Midtown's unique charm lies in its historic architecture, cultural diversity, and vibrant community spirit. The area's mix of historic homes and modern amenities creates a unique living experience.

2. Downtown Memphis

Grades:

• Convenience: A+
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: C+
• Return on Investment: B+
• Proximity to Work-Related Travel: A+
• X-Factor: A+

Convenience:
Downtown Memphis offers unparalleled convenience with its proximity to the city’s business district, major highways, and public transportation hubs.

Tourist Attractions:
This area is a tourist hotspot with attractions like Beale Street, the National Civil Rights Museum, and the Mississippi Riverfront. These landmarks make Downtown highly attractive to short-term renters and tourists.

Things to Do:
Downtown Memphis is bustling with activities, from live music on Beale Street to riverboat cruises on the Mississippi. The area also hosts numerous festivals and events throughout the year.

Average Home Prices:
While home prices in Downtown are higher compared to other neighborhoods, the potential for short-term rental income can offset the cost. Investors need to weigh the higher initial investment against the strong demand for rental properties.

Return on Investment:
The ROI in Downtown Memphis can be significant, particularly for short-term rentals. The steady influx of tourists and business travelers ensures high occupancy rates and premium rental prices.

Proximity to Work-Related Travel:
Downtown’s close proximity to major hospitals, the convention center, and sports venues like the FedExForum makes it ideal for professionals and business travelers.

X-Factor:
Downtown’s vibrant nightlife, historic landmarks, and riverfront views give it a distinct appeal. The energy and cultural significance of this area are unmatched in the region.

3. Germantown

Grades:

• Convenience: B+
• Tourist Attractions: B
• Things to Do: B+
• Average Home Prices: B-
• Return on Investment: A-
• Proximity to Work-Related Travel: B+
• X-Factor: A

Convenience:
Germantown offers a suburban feel with easy access to downtown Memphis via major highways. It’s an ideal location for families seeking a quieter lifestyle with convenient city access.

Tourist Attractions:
While Germantown lacks major tourist attractions, it is known for its parks, gardens, and the Germantown Performing Arts Center, which hosts various cultural events.

Things to Do:
The area offers a variety of family-friendly activities, including parks, sports complexes, and shopping centers. The Germantown Festival is a popular annual event.

Average Home Prices:
Home prices in Germantown are relatively high, reflecting the area’s desirability and quality of life. However, the investment is worthwhile due to the strong demand for rental properties in this family-oriented community.

Return on Investment:
Germantown’s stable property market and high demand for rentals make it an excellent choice for investors. The area’s reputation for safety and good schools further boosts its rental appeal.

Proximity to Work-Related Travel:
Germantown is within a reasonable distance to major hospitals and the business district, making it convenient for healthcare professionals and executives.

X-Factor:
Germantown’s charm lies in its family-friendly atmosphere, top-rated schools, and well-maintained neighborhoods. The area’s community events and high quality of life are significant draws.

4. East Memphis

Grades:

• Convenience: A-
• Tourist Attractions: B
• Things to Do: B+
• Average Home Prices: B+
• Return on Investment: B+
• Proximity to Work-Related Travel: A-
• X-Factor: A-

Convenience:
East Memphis is well-connected to the rest of the city, offering convenient access to shopping centers, restaurants, and schools. The area’s central location makes commuting easy for residents.

Tourist Attractions:
While not a primary tourist destination, East Memphis is home to attractions like the Memphis Botanic Garden and Shelby Farms Park, one of the largest urban parks in the country.

Things to Do:
Residents enjoy a variety of activities, including shopping at the upscale boutiques in Laurelwood and exploring the extensive trails and lakes at Shelby Farms Park.

Average Home Prices:
Home prices in East Memphis are higher than average, reflecting the area’s desirability. The neighborhood’s strong appeal ensures steady property appreciation and rental demand.

Return on Investment:
East Memphis offers a good ROI due to its popularity among families and professionals. The area’s stable property market and high rental demand contribute to its investment potential.

Proximity to Work-Related Travel:
The area is close to several major hospitals, including Baptist Memorial Hospital and St. Francis Hospital, as well as corporate offices and business centers.

X-Factor:
East Memphis combines suburban tranquility with urban amenities. The area’s spacious homes, excellent schools, and proximity to recreational facilities make it highly attractive to families.

5. Collierville

Grades:

• Convenience: B
• Tourist Attractions: B-
• Things to Do: B
• Average Home Prices: B-
• Return on Investment: A-
• Proximity to Work-Related Travel: B
• X-Factor: A-

Convenience:
Collierville offers a suburban lifestyle with access to major highways for easy commuting. The area is ideal for those seeking a quieter environment without sacrificing access to city amenities.

Tourist Attractions:
While not a major tourist destination, Collierville’s historic town square and annual events attract visitors. The area’s parks and green spaces are also notable attractions.

Things to Do:
Collierville offers various recreational activities, including parks, sports facilities, and shopping centers. The area’s historic charm and community events provide a unique living experience.

Average Home Prices:
Home prices in Collierville are moderate, making it an attractive option for families and investors. The area’s affordability, combined with its desirability, ensures a steady appreciation of property values.

Return on Investment:
Collierville offers a strong ROI due to its growing population and demand for rental properties. The area’s family-friendly environment and good schools contribute to its investment potential.

Proximity to Work-Related Travel:
The area is reasonably close to major hospitals and business centers, making it a convenient location for professionals. However, it is further from downtown Memphis compared to other neighborhoods.

X-Factor:
Collierville’s historic charm, high-quality schools, and tight-knit community make it a unique and desirable place to live. The area’s combination of suburban tranquility and modern amenities appeals to a wide range of residents.

Conclusion

Shelby County, TN, offers a diverse array of neighborhoods, each with its own unique appeal and investment potential. Whether you’re looking for the vibrant urban life of Downtown Memphis, the historic charm of Midtown, or the family-friendly environment of Germantown and Collierville, there is a rental property investment opportunity to suit your needs. By carefully evaluating each area based on convenience, attractions, activities, home prices, ROI, and unique characteristics, you can make informed decisions and unlock the full investment potential of rental properties in Shelby County.