Airbnb Data on 1,755 Active Vacation Rentals in Memphis

Introduction

As the short-term rental market continues to thrive across the United States, investors are seeking lucrative opportunities in various cities. Memphis, Tennessee, with its rich cultural heritage, vibrant music scene, and iconic attractions, presents an enticing prospect for short-term rental owners.

In this guide, we will explore the state of the (Airbnb) short-term rental market in Memphis, delving into key statistics, regulations, and potential returns. Additionally, we will answer some essential questions about Memphis, such as its climate, population, tourist attractions, and more. Let’s dive in!

Understanding the Market Statistics

To grasp the current state of the short-term rental market in Memphis, it’s important to analyze relevant statistics and data. Here are some key data points to consider:

Property Appreciation and Median Home Value

According to Zillow, homes in Memphis have experienced a notable deppreciation rate of -4.50%. The median home value in Memphis stands at $144,347, indicating a relatively affordable housing market compared to many other major cities.

Short-Term Rental Supply and Rates

Chalet reports that there are currently 1,755 active (Airbnb) short-term rentals in Memphis. The average daily rate for these rentals is $187.90, with an occupancy rate of 49%. These figures indicate a healthy demand for short-term rentals in Memphis, making it an attractive market for potential investors.

Revenue and Yield

Considering the average daily rate and occupancy rate, the annual revenue for (Airbnb) short-term rentals in Memphis amounts to $29,400. This presents an opportunity for investors to generate a steady income stream. Additionally, the average gross yield of short-term rentals in Memphis is an impressive 20.37%, making it a potentially lucrative investment option.

Property Tax and Regulation

SmartAsset reports that the average property tax in Memphis is 0.82%. While this tax rate should be factored into financial planning, it remains relatively manageable compared to some other cities. When it comes to short-term rental regulation, Memphis exhibits a somewhat investor-friendly environment. However, it is important to be aware of the zoning regulations and limitations imposed by the city to ensure compliance.

Essential Information about Memphis, TN

To gain a comprehensive understanding of the short-term rental market in Memphis, it’s crucial to explore some key details about the city itself. Let’s answer a series of questions that shed light on the context surrounding Memphis.

Median Household Income

The median household income in Memphis, TN, is an essential economic indicator. According to the latest available data, the median household income in the city is $42,926. This figure helps assess the local residents’ economic capacity and their potential as short-term rental customers.

Climate

Memphis experiences a humid subtropical climate. Summers are hot and humid, with temperatures regularly exceeding 90°F (32°C). Winters are generally mild, with occasional cold spells but rarely dipping below freezing. Spring and fall seasons bring pleasant temperatures, making them ideal times for tourists to explore the city.

Population

As of the most recent data, the population of Memphis, TN, is approximately 651,073. This makes Memphis the largest city in Tennessee and one with a substantial potential customer base for short-term rentals.

Sports Teams

Memphis is home to several professional and college sports teams. The Memphis Grizzlies, an NBA basketball team, captivate local sports fans with their exhilarating games. Additionally, the Memphis Redbirds, a Triple-A affiliate of the St. Louis Cardinals, entertain baseball enthusiasts during the summer season.

Colleges and Universities

Memphis boasts several esteemed educational institutions, including the University of Memphis, a prominent public research university. Other notable colleges in the area include Rhodes College, Christian Brothers University, and the University of Tennessee Health Science Center. These institutions attract students, faculty, and visitors, potentially creating a consistent demand for short-term rentals.

Crime Rate

While Memphis offers abundant opportunities, it is important to acknowledge the city’s crime rate. According to recent statistics, Memphis has a higher crime rate compared to the national average. Investors should be mindful of selecting locations with lower crime rates when considering short-term rental properties.

Visitor Demographics and Attractions

Memphis draws visitors from various locations, both domestic and international. According to available data, the majority of visitors to Memphis come from within the United States, with notable interest from nearby states such as Mississippi, Arkansas, and Missouri. International visitors often come from Canada, the United Kingdom, Germany, and Australia.

Memphis is renowned for its iconic tourist attractions, with the following being among the most popular:

1. Graceland: The former home of Elvis Presley, Graceland offers a captivating glimpse into the life of the legendary musician.
2. Beale Street: Known as the “Home of the Blues,” Beale Street is a vibrant entertainment district lined with clubs, restaurants, and live music venues.
3. National Civil Rights Museum: Housed in the Lorraine Motel, the site of Martin Luther King Jr.’s assassination, this museum chronicles the Civil Rights Movement’s history.
4. Sun Studio: Often referred to as the “Birthplace of Rock ‘n’ Roll,” Sun Studio is where legendary musicians like Elvis Presley, Johnny Cash, and Jerry Lee Lewis recorded their first hits.
5. Memphis Zoo: This family-friendly attraction is home to a wide array of animals and offers an engaging experience for visitors of all ages.

Peak Season

Memphis experiences peak tourist seasons during certain times of the year. The spring and fall seasons are generally considered the busiest periods, as the weather is pleasant and various events, such as music festivals and cultural celebrations, take place during these times. Visitors flock to the city to enjoy outdoor activities, live music, and explore its vibrant culture.

Conclusion

The Airbnb rental market in Memphis, TN, presents an appealing opportunity for investors. With its favorable property appreciation, affordable median home values, and substantial short-term rental demand, Memphis offers potential for attractive returns. Additionally, the city’s diverse attractions, rich cultural heritage, and robust visitor demographics contribute to its overall appeal.

However, investors should be mindful of factors such as property tax, short-term rental regulations, and the city’s crime rate. By staying informed and choosing their investment properties wisely, investors can leverage the thriving short-term rental market in Memphis to generate significant income. With the right approach, this southern gem can prove to be a profitable and rewarding investment destination.