Top Memphis Neighborhoods for Short-Term Rentals

Not all Memphis neighborhoods perform the same for short-term rentals. Location drives demand, guest expectations, and ultimately—your bottom line.

We manage STRs across the city and see the data firsthand. Here's a breakdown of the top neighborhoods for Memphis Airbnb investment, along with what actually works (and doesn't) in each area.

Downtown Memphis

• Best for:
• High ADR, event-driven demand, premium guests
• Considerations:
• Higher acquisition cost, more competition, parking challenges
• Downtown delivers the highest nightly rates in the city. Proximity to Beale Street, FedExForum, the convention center, and the riverfront means consistent demand from tourists and business travelers.
• Expect ADRs in the $150–$200+ range for a well-appointed 1–2 bedroom. But you're also competing against hotels and a saturated STR market. Differentiation matters—professional photos, fast response times, and standout amenities are table stakes.
• Who it's for:
• Investors who can acquire at a reasonable basis and are committed to running a premium operation.

Midtown Memphis

• Best for:
• Balanced demand, walkable neighborhoods, medical/university visitors
• Considerations:
• Varied street-by-street quality, some older housing stock
• Midtown is Memphis's most versatile STR market. It spans several sub-neighborhoods—Overton Square, Vollintine-Evergreen, the Medical District—and draws a mix of tourists, traveling nurses, visiting professors, and families.
• You'll find more affordable entry points than Downtown, with ADRs typically in the $120–$160 range. Properties near the zoo, Overton Park, and the hospitals perform especially well.
• Who it's for:
• Investors looking for solid, consistent returns without Downtown's price tag.

Cooper-Young

• Best for:
• Walkability, younger guests, food/bar scene proximity
• Considerations:
• Getting saturated, higher price per square footCooper-Young is Memphis's trendiest neighborhood—and that cuts both ways. Guests love the walkable restaurants, coffee shops, and nightlife. But investors have caught on, and the area is more competitive than it was five years ago.
• If you can find a deal, Cooper-Young still performs. But don't overpay expecting the neighborhood name to carry you. Execution and pricing discipline matter more here than anywhere else.
• Who it's for:
• Investors who want a "lifestyle" property and are comfortable with tighter margins.

Berclair / Highland Heights

• Best for: Cash flow, lower entry price, less competition
• Considerations:
• Fewer walkable amenities, requires strong operations
• Berclair is where value investors are quietly building portfolios. Entry prices are dramatically lower than Midtown or Downtown—often $100K–$150K for a 3-bedroom house. That math can work extremely well if you execute.
• But Berclair isn't a tourist destination. Your guests are workers passing through, families visiting, and travelers who prioritize space and price over nightlife. You need to accept one-night stays, welcome pets, and turn fast.
• The operators who win here run lean, efficient operations. The ones who fail try to impose Downtown expectations on a Berclair property.
• Who it's for:
• Cash flow-focused investors who understand the guest profile and can operate efficiently.

East Memphis

• Best for:
• Families, corporate travelers, longer stays
• Considerations:
• More suburban feel, less "Memphis character"
• East Memphis draws a different guest: families visiting for graduations, corporate relocatees on month-long assignments, medical patients at nearby facilities.
• Nightly rates are moderate, but longer average stays reduce turnover costs. If you can furnish for extended stays and market accordingly, East Memphis offers stable, lower-drama income.
• Who it's for:
• Investors who prefer fewer turnovers and more predictable cash flow.

The Medical District

• Best for:
• Traveling nurses, patient families, medical professionals
• Considerations:
• Very specific guest profile, weekday-heavy demand
• If you're near Methodist, Baptist, or St. Jude, you have built-in demand from the healthcare ecosystem. Traveling nurses book 30–90 day stays. Patient families need a place close to the hospital that isn't a hotel.
• Furnish appropriately—comfortable for longer stays, functional kitchens, reliable WiFi for remote work—and you'll stay booked. This is less "vacation rental" and more "corporate housing," and the operators who understand that do very well.
• Who it's for:
• Investors who want medium-term stays and can furnish for extended living.

What About Other Areas?

Germantown / Collierville:

• Suburban, lower STR demand. Better suited for long-term rentals.

South Memphis / Whitehaven:

• Closer to Graceland, but operationally challenging. Experienced investors only.

Cordova / Bartlett:

• Family suburbs. Limited STR demand—stick to traditional rentals.

Neighborhood Selection Matters—But Execution Matters More

Here's the truth: we've seen underperforming properties in Downtown and cash-flowing machines in Berclair. Neighborhood sets the ceiling, but operations determine where you actually land.

The best STR investors in Memphis match the property to the guest profile, price dynamically, accept the Memphis guest (one-night stays, pets, last-minute bookings), and control operations rather than outsourcing everything.

Thinking About Investing in a Memphis STR?

We work with owners across all these neighborhoods. Whether you're evaluating a property, switching from another manager, or just exploring the market, we're happy to talk.

Contact us or download our free STR Deal Calculator to run the numbers yourself.