best places to Airbnb in Tennessee
Key Takeaways
- The low cost of living, affordable real estate market, and economic growth of Memphis helped many hosts to earn a nice passive income through Airbnb.
- Learn the advantages that investors can enjoy when investing in short-term rentals in Memphis, Tennessee.
- Discover the top 10 neighborhoods and nearby cities in Memphis, TN along with their median housing values and respective Airbnb data.
Introduction
Memphis is known for its Southern charm. This city is surrounded by a rich music history since it’s the place where rock n’ roll was created and is also the cradle of the blues genre. Visitors and locals alike can eat the best barbecues in the country while enjoying the great musical atmosphere.
The Bluff City has a lot to offer, not only to music lovers but also to those who are passionate about animals as it has the Peabody Ducks and the award-winning Memphis Zoo.
Memphis offers an interesting real estate market, a great quality of life, and a business-friendly climate. This has drawn many investors’ attention over the past few years. But you may wonder, “which are the most profitable areas for Airbnb in Memphis?” – allow us to lend you a hand!
In this article, we’ll feature the best places to do Airbnb in Memphis, Tennessee and some of the expectations for Airbnb investment properties in this city. Continue reading to learn more.
Advantages of investing in real estate in Memphis, TN
Buying a rental property in Memphis, TN is a great way of achieving financial freedom since this city offers attractive investment opportunities to investors. This city is also a commercial center that is widely known as the cradle of the blue music genre, but what advantages does this location offer to property investors? Check out some of the major reasons why buying a rental property in Memphis, TN is a great idea:
Great quality of life
Memphis does not only offer the best barbecues in the country but also a great quality of life! In fact, living expenses and housing prices are fairly low in Memphis compared to other major cities. The average property price is $146K with a 1-year value change of 12.9%. In addition to this, the cost of living is 19% cheaper than the national average.
Booming economy
Memphis is a thriving commercial, financial, and technological center. Thanks to its strategic location along the Mississippi River and major railway, the city became a logistic powerhouse. It’s home to many major companies like FedEx & ServiceMaster and start-up companies that offer great job opportunities.
Tourism industry
Did you know that over 10M people visit Memphis every year? According to Greater Memphis Chamber, the musical history of Memphis is internationally acclaimed! A great number of tourists come to the city to visit places like Elvis Presley’s Graceland, the legendary Sun Studios, and various music festivals. Aside from that, the National Civil Rights Museum, Memphis Zoo and the Peabody Ducks also attract thousands of visitors.
Is Airbnb Profitable in Memphis, TN?
Are you concerned that your investment property in Memphis won’t be profitable? Don’t worry! Airbtics confirms that investing in real estate in Memphis is certainly profitable. Yet, investors should note that the level of profitability highly depends on the property type and location.
Based on Airbtics’ data, an Airbnb host can expect an average annual revenue of $47,091 and a median occupancy rate of 68% for operating a 3-bedroom property in Memphis.
10 Most Profitable Areas near Memphis for Airbnb
Memphis is the second largest city in the state of Tennessee and also a center for global commerce. It has 5 defined districts that are confirmed by many lively neighborhoods. Hence, we understand if you’re struggling to choose the best location to set up your Airbnb listing in Memphis.
Check out the best neighborhoods and nearby cities in Memphis that are highly recommended for starting an Airbnb business:
1. Downtown Memphis
- Total Number of Airbnb Listings: 107
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $299,000
- Airbnb Annual revenue: $41,196
- Gross rental yield: 13.78%
2. Central Gardens, Memphis
- Total Number of Airbnb Listings: 29
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $299,000
- Airbnb Annual revenue: $37,272
- Gross rental yield: 12.47%
3. Crosstown, Memphis
- Total Number of Airbnb Listings: 28
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $189,900
- Airbnb Annual revenue: $44,608
- Gross rental yield: 23.49%
4. Uptown, Memphis
- Total Number of Airbnb Listings: 20
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $224,950
- Airbnb Annual revenue: $50,453
- Gross rental yield: 22.43%
5. Binghampton, Memphis
- Total Number of Airbnb Listings: 25
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $110,000
- Airbnb Annual revenue: $36,263
- Gross rental yield: 32.97%
6. Cooper-Young, Memphis
- Total Number of Airbnb Listings: 57
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $235,000
- Airbnb Annual revenue: $40,078
- Gross rental yield: 17.05%
7. Oxford, MS
- Distance from Memphis: 62 miles
- Total Number of Airbnb Listings: 224
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $184,500
- Airbnb Annual revenue: $40,161
- Gross rental yield: 21.76%
8. Little Rock, AR
- Distance from Memphis: 134 miles
- Total Number of Airbnb Listings: 273
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $175,000
- Airbnb Annual revenue: $22,964
- Gross rental yield: 13.12%
9. Hot Springs, AR
- Distance from Memphis: 176 miles
- Total Number of Airbnb Listings: 330
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $174,500
- Airbnb Annual revenue: $31,876
- Gross rental yield: 18.26%
10. Nashville, TN
- Distance from Memphis: 197 miles
- Total Number of Airbnb Listings: 2,748
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $345,900
- Airbnb Annual revenue: $69,480
- Gross rental yield: 20.09%
Takeaway
In summary, Memphis has a variety of profitable areas that offer good investment opportunities to property investors. While there are diverse neighborhoods and nearby cities in Memphis with attractive rental yields and annual revenue, it’s important to carefully consider your options.
After discovering the best places to Airbnb in Memphis, Tennessee, take the next step in this journey and check Airbtics’ short-term rental income estimator. Choose to stand out among your competitors and maximize your profitability!
