Top-rated schools, parks, and one of the highest median incomes in Tennessee

Germantown is one of the most sought-after suburbs in the Memphis metro — and for good reason. With a median household income above $140,000, a school district that holds the highest ACT average in the state six years running, and over 700 acres of parkland, it consistently draws families, executives, and medical professionals looking for a premium quality of life just 20 minutes from Downtown. Whether you own a single-family rental in Dogwood Grove, a townhome near Saddle Creek, or an investment property in Forest Hill Heights, your asset sits in a market defined by high home values, low vacancy, and tenants who stay.



Longstep Property Solutions provides full-service property management for Germantown owners — handling everything from tenant screening and lease management for long-term rentals to dynamic pricing and guest coordination for short-term units. We know this market because we're local, and we manage properties across Germantown's distinct neighborhoods so you get area-specific expertise, not a one-size-fits-all approach.

Key Neighborhoods in Germantown

Dogwood Grove & Farmington

Dogwood Grove sits in the northeast corner of Germantown with large-lot homes ranging from 3,500 to 5,000+ square feet — multi-story brick builds with detailed architecture, deep setbacks, and generous street widths. Farmington, anchored by one of the top-rated elementary schools in the district, draws families willing to pay premium rents for school zoning alone. These neighborhoods command some of the highest long-term rental rates in the city, and turnover is low because tenants put down roots.

Saddle Creek & Old Germantown

Saddle Creek is the commercial heart of Germantown — home to 40+ shops and restaurants you won't find anywhere else in the Mid-South, from Lululemon and Free People to chef-driven spots like Southern Social and Limelight. Properties near Saddle Creek and the Old Germantown area benefit from walkable retail, dining, and the historic Germantown Depot. Rental demand here comes from young professionals and empty-nesters who want a low-maintenance lifestyle with high-end amenities at their doorstep.

Riverdale & Houston Levee

The Riverdale corridor along Houston Levee is Germantown's family-friendly backbone — anchored by Riverdale Elementary (another top-tier GMSD school) and surrounded by established subdivisions with strong HOAs. Homes here tend to be well-maintained ranch and two-story builds on quarter-acre-plus lots. This area has some of the most consistent rental demand in Germantown because families prioritize school zoning and neighborhood stability, and they tend to renew leases year after year.

Germantown Area Long-Term Rental Market

Germantown's long-term rental market is driven by one thing above all else: schools. The Germantown Municipal School District holds the highest district ACT average in Tennessee — six consecutive years running — and ranks in the top 10 in 24 of 27 state-tested subjects, and families will pay a premium to rent in-zone. Combine that with low crime, high walkability near commercial corridors, and proximity to major employers in the medical and corporate sectors, and you get a rental market with strong demand and tenants who stay longer than average.

One thing worth noting: Germantown is overwhelmingly owner-occupied — 86% of households own their homes. That means the rental inventory is limited, which works in your favor as a property owner. With only 14% of housing units available to renters, well-maintained properties in desirable school zones lease quickly and command above-average rents. The 2-bedroom average of $2,148 reflects the quality of housing stock here — these aren't commodity apartments, they're single-family homes and upscale townhomes in neighborhoods people actively choose.

$1,958

Average Monthly Rent

$2,148

2-Bedroom Average

+4.82%

Year-over-Year Rent Change

86%

Owner Occupied

Germantown Area Short-Term Rental Market

Germantown's short-term rental market is smaller than Memphis proper but serves a distinct and valuable guest profile — visiting families attending school events, medical professionals on temporary assignments at nearby hospitals, corporate relocators evaluating the area, and wedding or reunion guests who want a suburban home base rather than a hotel. Properties that perform best as STRs in Germantown are well-furnished single-family homes in quiet neighborhoods, often booked for longer midterm stays of one to four weeks rather than weekend getaways.

$120–$225

Average Daily Rate

62%

Average Occupancy

1,945+

Active Memphis Listings

$35-$50K

Annual STR Revenue

Germantown Short-Term Rental Permit Requirements