5 Memphis short-term rentals. 14 months. $196,519 in gross revenue. Here's what real performance data actually shows.

Most "case studies" in property management are marketing. Hero properties in tourist markets, cherry-picked months, projections dressed up as results. This Memphis STR case study is different. It documents 14 months of consistent operational data across a five-property portfolio of standard 2 to 3 bedroom single-family homes in Memphis neighborhoods like Berclair, Broad Avenue, East Memphis, and Sherwood Forest. No luxury builds. No prime tourist addresses. Houses purchased between $130K and $200K, operated as short-term rentals from day one.

The point is simple: show what professional operations produce on typical Memphis inventory so owners can see the delta between managed and self-managed results without the projection math that usually muddies the picture.

The Portfolio at a Glance

Across 14 months, the five properties combined produced $196,519 in gross revenue at 86% portfolio occupancy and a $91 average nightly rate. 85% of guest reviews were five-star. One property went from its setup month to positive revenue within 60 days.

These are not vacation rentals on the beach. They are standard single-family homes in established Memphis neighborhoods, priced like typical investor inventory. The numbers reflect what consistent, professional Memphis short-term rental management produces on that kind of property.

The Ramp: Zero to Stabilized in 60 to 90 Days

Every new Airbnb listing starts cold. No reviews, no booking history, no search ranking. The first 90 days determine whether a Memphis short-term rental becomes a consistent performer or an expensive vacancy.

One property in this portfolio tells the story cleanly. Month 1 was setup: furnishing, photography, listing optimization. Month 2 produced $3,228 in gross revenue at 87% occupancy and an $84 nightly rate. By month 4, the property was fully booked at a $95 nightly rate. By month 9, the nightly rate had climbed to $114. A 90% increase from launch.

A second property in the same portfolio hit 100% occupancy within 60 days of going live, with the nightly rate climbing to $133 by month 6. Same pattern, different property. Repeatable process, repeatable results.

Why ADR Climbs Over Time

New Airbnb listings have to start with low rates to attract early bookings. As a property accumulates five-star reviews, Airbnb's algorithm pushes it higher in search results, which allows the nightly rate to rise without sacrificing occupancy. This is the flywheel that separates professionally managed short-term rentals from self-managed ones.

Across this portfolio, nightly rates increased 40% to 90% from launch to stabilized operation. Launch rates ranged from $60 to $74. By month 6, properties were running $94 to $101. Stabilized rates landed between $88 and $114. That movement is not pricing experiments. It is the compounding effect of reviews, search visibility, and guest satisfaction feeding each other. 85% five-star ratings across 6,000+ verified guest reviews is what earns the pricing power.

Why Memphis STRs Perform Differently

Memphis is not a vacation market, and that is the opportunity. Over 40% of guests in this portfolio booked within 48 hours of arrival. They are driving through on I-40 or I-55, traveling for work at FedEx or St. Jude, visiting family, or in town for events. Many have pets. Many need one or two nights. That demand pattern means Memphis short-term rental income does not depend on a single tourist season or a single employer.

The city is also backed by roughly $30 billion in new capital investment: xAI, Google, Ford's BlueOval City, and a $12.9 billion St. Jude expansion. Memphis welcomed 13.1 million visitors in 2024 who generated $4.3 billion in direct spending. Tennessee has no state income tax on rental income. The fundamentals are not speculative.

While plenty of managers set two-night minimums and lose half the market, LPS leans into how Memphis actually works: one-night stays allowed, pet-friendly policies, and 45-minute average turnovers that unlock more bookable nights per month.

The Revenue Gap: $13,260 Per Property, Per Year

The Memphis STR market average sits near 57% occupancy. Properties in this case study averaged 86% at comparable nightly rates. Apply the market-average occupancy to the same five properties at the same nightly rates, and the portfolio would have produced roughly $130,217 in gross revenue instead of $196,519.

That is a $66,301 annual gross revenue gap across five properties. Roughly $13,260 per property, per year, that self-managed and underperforming listings never capture. And this comparison uses the same ADR for both scenarios. In reality, unoptimized listings also run lower nightly rates because they lack the review volume to push them up. The real gap is wider.

What Actually Produces These Numbers

LPS is fully vertically integrated, the largest locally-owned Memphis short-term rental management company. Cleaning, maintenance, laundry, guest communications, and listing optimization are all in-house. The operation that produced this Memphis STR case study runs on 10 full-time cleaners, 4 in-house maintenance technicians, an $80K commercial laundry facility, 45-minute average turnovers, and a 23% booking-request rejection rate that protects review scores before they ever start.

Management fee is a flat 10% of gross booking revenue. No setup fees, no onboarding fees, no hidden markups. Cleaning, maintenance, and supplies are billed at cost as they occur. Every dollar is documented in the monthly owner statement.

What This Means for Your Memphis Property

Every owner's financial situation is different. Purchase price, financing, tax position, and investment goals all shape what the bottom line looks like. What professional management controls is the top line: occupancy, nightly rate, guest experience, and operational costs. This Memphis STR case study shows what those top-line numbers look like when the operations are built in-house instead of outsourced.

To see the full breakdown with property-by-property performance data, visit the Memphis STR case study landing page. To translate that performance to your specific deal, run the numbers in the Memphis Rental Investment Calculator. Both give you a cleaner view than anyone's projections will.

Feel free to reach out andrew@staywithlps.com for a custom analysis on your property.