Memphis, TN Rental Market for Investors
An estimated 84% of Memphis's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of October 2026.
Homes in Memphis that pencil right now
A sample of active Memphis listings whose DSCR clears 1.25 using short-term rental income projections we accept as a direct lender. These are spread across the price range, not ranked, and current as of October 2026.
$155,000DSCR 1.332 bed · 2 bath · 1,150 sqft
- STR revenue
- $28,894/yr
- Est. interest-only payment
- $1,443/mo
On the market 81 days · Listed by Benchmark At Southwind, Llc
Scout this home & market: 2-bed condo in Memphis
$185,000DSCR 1.853 bed · 2 bath · 1,693 sqft
- STR revenue
- $31,057/yr
- Est. interest-only payment
- $1,119/mo
On the market 44 days · Listed by FAST TRACK REALTY
Scout this home & market: 3-bed house in Memphis
$309,900DSCR 1.493 bed · 2.5 bath · 2,018 sqft
- STR revenue
- $42,729/yr
- Est. interest-only payment
- $1,917/mo
On the market 102 days · Listed by Crye-Leike Inc., REALTORS
Scout this home & market: 3-bed house in Memphis
As of October 2026, we analyzed 1,645 active for-sale homes in Memphis, Tennessee. The typical listing is priced at $260,000 and is projected to generate about $39,485 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 84.0% of those homes could still cover an investor mortgage payment on short-term-rental income — well above the 53.1% median across the 200 major metros we track, ranking Memphis #4 of 200 for cash-flow potential.
On market momentum: homes in Memphis sit a median of 74 days on the market, and 24% of active listings came on in just the last 30 days — a slower-moving market, which shapes how much room there is to negotiate.
For a DSCR loan — which qualifies on the property's rental income rather than your personal income — that's a relatively healthy setup: in Memphis, a meaningful share of listings throw off enough short-term-rental income, after costs, to cover an estimated investor mortgage payment.
What actually works in Memphis
Memphis is a broad cash-flow market right now: 951 of the 1,327 Memphis homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $365,000.
| Price | 1 bed | 2 bed | 3 bed | 4 bed | 5 bed |
|---|---|---|---|---|---|
| Under $150k | — | 91%1.81 | 100%2.67 | 100%3.02 | — |
| $150k–$250k | 24%1.00 | 88%1.61 | 98%2.02 | 100%2.27 | 100%2.85 |
| $250k–$350k | 0%0.71 | 10%1.08 | 72%1.43 | 90%1.64 | 100%1.72 |
| $350k–$500k | — | 0%0.75 | 24%1.05 | 75%1.42 | 88%1.49 |
| $500k+ | — | — | 2%0.66 | 7%0.94 | 33%1.02 |
Darker means a larger share of that group cash-flows. “—” means fewer than 8 active listings — too few to draw a conclusion from.
Memphis in full
| Active for-sale homes analyzed | 1,645 |
|---|---|
| Median list price | $260,000 |
| Median projected STR revenue (annual, gross) | $39,485 |
| Median average daily rate (ADR) | $186 |
| Median occupancy | 59% |
| Median beds | 3 |
| Median size | 1,758 sqft |
| Estimated cash-flow-positive share | 84.0% |
| Median days on market | 74 days |
| New listings (last 30 days) | 24.0% of active |
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Estimates for educational purposes. Final terms subject to credit, property & program approval.
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