Best Memphis neighborhoods for rentals
For a cash-flow investor the number that matters is yield, not headline rent: a $2,600 rent on a $490,000 Germantown home is a smaller return than $1,575 on a $205,000 Horn Lake home, so we show yield for every area below. One honest caveat up front: gross yield climbs as home prices fall, but the cheapest homes are usually distressed and need real renovation, and our county flip data puts that work around $30,000 to $40,000 in the lower-priced Memphis submarkets, so a real return runs on your all-in cost, not the sale price (more below). By raw rent, Germantown is highest at $2,600; the fastest-leasing area is Mud Island near 29 days. Every number is sourced from live Memphis comps and county records, with the sample size shown.
Memphis areas by gross rent yield
Gross yield is annual rent divided by what you actually pay for the home, a quick comparison figure. Every area we have data for is here, sorted by yield. Median rent reflects a typical 3-bedroom single-family home, the standard rental comp across Memphis. Read the gross-versus-net note first: the highest gross yields sit on the lowest-priced homes, where net return compresses the most.
1. The price is pre-renovation. The median sale price often reflects homes bought as-is or distressed. Many need real work, so the "Yield after reno" column runs the same rent against your all-in cost, purchase plus the typical renovation for that area, pulled from our county deed records (the same flip dataset, area by area). In the lower-priced areas that reno commonly runs $30,000 to $50,000 and pulls the real yield well below the gross figure. A high gross yield on a very low sale price almost always means a house that is not yet rentable.
2. Gross is not net. These figures leave out vacancy, turnover, repairs, insurance, taxes, and management, which eat a much bigger share of an $1,100 rent than a $2,500 one.
Read the table as one consistent way to compare areas, never as a buy signal for any neighborhood.
| # | Area | Gross yield | Yield after reno | Median rent (3br) | Typical home value | Typical reno | Comps |
|---|---|---|---|---|---|---|---|
| 1 | Soulsville | 45.6% | 26.3% | $1,150 | $30,250 | $22,200 | 34 |
| 2 | Douglass | 28.7% | n/a | $1,195 | $50,000 | n/a | 39 |
| 3 | Main Street Mall | 23.9% | n/a | $2,355 | $118,000 | n/a | 19 |
| 4 | Riverview Kansas | 22.4% | n/a | $1,045 | $56,000 | n/a | 22 |
| 5 | Mallory Heights | 20.7% | n/a | $1,123 | $65,000 | n/a | 18 |
| 6 | South Memphis | 18.7% | 12.7% | $874 | $56,000 | $26,650 | 121 |
| 7 | Klondike Smokey City | 17.7% | n/a | $1,195 | $81,000 | n/a | 24 |
| 8 | Hyde Park | 17.6% | n/a | $1,250 | $85,000 | n/a | 29 |
| 9 | Hollywood | 17.6% | n/a | $1,235 | $84,250 | n/a | 20 |
| 10 | New Chicago | 17.4% | 10.9% | $1,195 | $82,375 | $48,800 | 65 |
| 11 | Lemoyne Owen College | 17.3% | n/a | $1,150 | $80,000 | n/a | 24 |
| 12 | Oka Nashoba | 15.7% | n/a | $1,173 | $89,500 | n/a | 18 |
| 13 | Uptown | 15.5% | 12.4% | $2,300 | $177,500 | $44,700 | 25 |
| 14 | Frayser | 15.5% | 11.1% | $1,065 | $82,375 | $33,100 | 257 |
| 15 | Pigeon Roost | 13.2% | n/a | $1,650 | $150,000 | n/a | 20 |
| 16 | Hyde Park & Hollywood | 13.1% | n/a | $922 | $84,625 | n/a | 72 |
| 17 | Rozelle | 12.8% | n/a | $1,595 | $150,000 | n/a | 20 |
| 18 | Castalia Heights | 12.7% | n/a | $1,195 | $113,000 | n/a | 23 |
| 19 | Bethel Grove | 12.1% | n/a | $1,088 | $107,800 | n/a | 50 |
| 20 | Klondike | 12.0% | n/a | $1,350 | $135,250 | n/a | 23 |
| 21 | Highland Heights | 11.7% | 8.5% | $1,118 | $115,000 | $42,400 | 20 |
| 22 | Brinkley Heights | 11.4% | n/a | $1,100 | $116,000 | n/a | 23 |
| 23 | Grahamwood | 11.4% | n/a | $1,278 | $135,000 | n/a | 52 |
| 24 | Cherokee | 11.1% | n/a | $1,273 | $137,500 | n/a | 48 |
| 25 | Messick-Buntyn | 11.1% | n/a | $1,295 | $140,000 | n/a | 24 |
Highest median rent
Top rent areas. High rent often means high price, so check the yield.
- Germantown$2,600
- Lakeland$2,550
- Mud Island$2,500
- Arlington$2,495
- Harbor Town$2,425
- Main Street Mall$2,355
- South Bluffs$2,335
- Greenlaw Addition$2,300
Fastest to lease
Median days on market, live listings.
Strongest 5-yr appreciation
Zillow Home Value Index, 5-year.
- Horn Lake27.6%
- Southaven26.6%
- Lakeland22.9%
- Hernando22.1%
- Bartlett21.3%
- Olive Branch20.7%
- Collierville20.6%
- Arlington19.7%
How we ranked these
Median rent and days on market come from current and recent Memphis rental listings, measured on a typical 3-bedroom single-family home so areas compare on the same unit. Home value is the median recent sale price in that area where we have it, and the Zillow Home Value Index for outlying suburbs where sale samples are thin. Gross rent yield is annual median rent divided by that home value, a quick comparison figure, not a full return (it excludes vacancy, turnover, repairs, taxes, insurance, and management). Yield after reno divides the same annual rent by your all-in cost, the home value plus the typical renovation for that area from our county flip deed records; areas outside our flip dataset show n/a. Appreciation is the Zillow Home Value Index over five years. We only show areas with a meaningful comp sample and show the sample size on every row.
Fair housing. We publish the same objective market data for every Memphis area. We do not rate neighborhoods as good or bad, do not steer anyone toward or away from any area, and do not include crime data, which can act as a proxy for protected characteristics. Your investment criteria are your own. This is informational market data, not investment, legal, or fair-housing advice.
Common questions
What is the best Memphis neighborhood for rental investment?
There is no single best area; it depends on your budget, your risk tolerance, and whether you are buying for cash flow, appreciation, or both, so we publish the data for every area and let you decide. For cash flow, look at yield rather than the highest rent: a high rent on an expensive house can return less than a modest rent on a cheaper one, which is why prestige areas like Germantown sit lower on yield than on rent. The catch is that gross yield climbs as home prices fall, and the lowest-priced homes carry the highest vacancy, turnover, and repair costs, so net return compresses. Germantown has the highest raw rent at $2,600 a month; Mud Island leases fastest near 29 days. Every figure is from live Memphis comps and county records, with the sample size shown.
Which Memphis neighborhoods rent the fastest?
Based on median days on market from live listings, the fastest-leasing areas include Mud Island, Normal Station, Collierville, Sea Isle Park. Fast lease-up matters because an empty month usually costs more than a small rent premium earns.
How is this ranking calculated?
Median rent and days on market come from current and recent Memphis rental listings, measured on a typical 3-bedroom single-family home so every area is compared on the same unit; appreciation comes from the Zillow Home Value Index; gross rent yield is annual median rent divided by the area home value. Because most low-priced homes sell pre-renovation, we also show yield after reno, which divides the same rent by your all-in cost (price plus the typical renovation for that area from our county flip deed records). We only rank areas with enough comps to be meaningful and show the sample size on every row, so you can judge how solid a number is.
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