Memphis

As of May 2026, Memphis, Southaven, Germantown have 2,199 active Airbnb and VRBO listings. This represents a 1% increase from the previous year.

The average Airbnb or VRBO in Memphis generates $28K per year. High-performing properties earn $53K/year, while low-performing properties earn $10K/year. This wide disparity suggests that revenue outcomes are heavily bifurcated, reflecting significant variance in how individual listings capture the 37% average occupancy.

Average home prices in Memphis vary by property size: 1-bedroom properties cost approximately $85K, 2-bedroom homes average $151K, 3-bedroom properties are around $237K, and 4+ bedroom homes average $346K. These prices reflect median home values across the Memphis, Southaven, Germantown area.

Airbnb and VRBO can be profitable in Memphis, with an average gross yield of 12% across all properties. High-performing properties achieve yields up to 22%, which is considered top for short-term rental investment. Such a yield spread implies that asset positioning is a primary driver of financial returns in a stagnant revenue environment.

The average occupancy rate for Airbnbs and VRBOs in Memphis is 37%. This occupancy level, combined with an average nightly rate of $190, results in a RevPAR (revenue per available room) of $53 per day.

1-bedroom properties demonstrate the strongest performance in Memphis, with an average gross yield of 16% and annual revenue of $15K. These properties balance purchase price ($85K), operating costs, and rental demand most effectively in the Memphis market.

Short-term rental regulations vary by jurisdiction in the Memphis area. Memphis: Moderate. Business license required, zoning restrictions apply, 2-person-per-bedroom occupancy limits. Enforcement exists but inconsistent—many operate without full compliance. Southaven: Lenient. Business license needed, basic zoning rules. Minimal enforcement—hosts commonly operate with little oversight. Germantown: Strict. Conditional use permit required, owner-occupancy mandated for Type 1 STRs, strict residential zoning limits. Active enforcement with violations pursued. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Memphis Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 1% year-over-year, while RevPAR has decreased 4%. This indicates balanced supply-demand dynamics where marginal supply increases are currently outpacing demand growth, placing downward pressure on individual unit earnings.

Launch around August, 2-3 months before peak spring season (November peaks). This pre-peak timing lets you build reviews when competition is -18% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Memphis listings include: Air Conditioning (100%), Kitchen (95%), Washing Machine (93%), Tv (92%), Heating (74%). Amenities that boost revenue the most include Hot Tub, Pool, Bbq, with Hot Tub properties earning approximately 69% more ($65K/year vs $39K/year).

Monthly estimated revenue per listing in Memphis over the last 12 months: May: $2K, June: $2K, July: $2K, August: $2K, September: $1K, October: $2K, November: $2K, December: $1K, January: $1K, February: $1K, March: $2K, April: $2K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Memphis is $190, up 11% year-over-year. By property size: 1-bedroom properties average $105/night, 2-bedroom properties average $155/night, 3-bedroom properties average $206/night, 4+ bedroom properties average $330/night. Rates peak in November and are lowest in January.

Guests in Memphis book an average of 24 days in advance, down 20% from last year. By property size: 1-bedroom: 21 days, 2-bedroom: 24 days, 3-bedroom: 24 days, 4+ bedroom: 28 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Memphis Airbnb and VRBO market has seen the following changes: supply grew 1%, revenue per listing decreased 4%, occupancy rose 2%, average nightly rates increased 11%, and lead time decreased 20%. These shifts reflect a tightening market where higher nightly rates are struggling to offset compressed revenue per listing.

In Memphis, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 45% higher occupancy than weekdays.