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 August 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 August 2026.
$135,000DSCR 1.842 bed · 1 bath · 809 sqft
- STR revenue
- $21,752/yr
- Est. interest-only payment
- $788/mo
On the market 72 days · Listed by KAIZEN Realty, LLC
Scout this home & market: 2-bed house in Memphis
$167,580DSCR 2.163 bed · 1 bath · 1,027 sqft
- STR revenue
- $31,781/yr
- Est. interest-only payment
- $981/mo
On the market 211 days · Listed by Keller Williams Realty
Scout this home & market: 3-bed house in Memphis
$184,800DSCR 1.843 bed · 1 bath · 1,017 sqft
- STR revenue
- $29,608/yr
- Est. interest-only payment
- $1,071/mo
On the market 151 days · Listed by Independence Realty&Investment
Scout this home & market: 3-bed house in Memphis
$215,000DSCR 1.673 bed · 2 bath · 1,200 sqft
- STR revenue
- $31,122/yr
- Est. interest-only payment
- $1,244/mo
On the market 22 days · Listed by Pinnacle Realty
Scout this home & market: 3-bed house in Memphis
$230,000DSCR 1.563 bed · 2 bath · 1,682 sqft
- STR revenue
- $32,072/yr
- Est. interest-only payment
- $1,374/mo
On the market 7 days · Listed by The Home Partners Realty
Scout this home & market: 3-bed house in Memphis
$245,000DSCR 2.464 bed · 2 bath · 1,818 sqft
- STR revenue
- $53,396/yr
- Est. interest-only payment
- $1,446/mo
On the market 105 days · Listed by Epique Realty
Scout this home & market: 4-bed house in Memphis
$324,000DSCR 1.313 bed · 2 bath · 2,278 sqft
- STR revenue
- $38,746/yr
- Est. interest-only payment
- $1,966/mo
On the market 87 days · Listed by MARX - BENSDORF, REALTORS
Scout this home & market: 3-bed house in Memphis
$399,000DSCR 1.544 bed · 3 bath · 2,301 sqft
- STR revenue
- $56,073/yr
- Est. interest-only payment
- $2,433/mo
On the market 72 days · Listed by MARX - BENSDORF, REALTORS
Scout this home & market: 4-bed house in Memphis
As of August 2026, we analyzed 1,677 active for-sale homes in Memphis, Tennessee. The typical listing is priced at $260,000 and is projected to generate about $39,154 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 84.4% of those homes could still cover an investor mortgage payment on short-term-rental income — well above the 52.5% 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 73 days on the market, and 25% 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: 999 of the 1,382 Memphis homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $359,000.
| Price | 1 bed | 2 bed | 3 bed | 4 bed | 5 bed |
|---|---|---|---|---|---|
| Under $150k | — | 75%1.68 | 100%2.58 | 100%3.33 | — |
| $150k–$250k | 12%0.98 | 78%1.57 | 99%1.96 | 100%2.34 | 100%2.69 |
| $250k–$350k | 0%0.75 | 9%1.00 | 79%1.41 | 99%1.67 | 100%1.85 |
| $350k–$500k | — | 4%0.77 | 20%1.05 | 71%1.39 | 89%1.49 |
| $500k+ | — | — | 0%0.65 | 11%0.86 | 30%0.99 |
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 | 1,677 |
|---|---|
| Median list price | $260,000 |
| Median projected STR revenue (annual, gross) | $39,154 |
| Median average daily rate (ADR) | $186 |
| Median occupancy | 58% |
| Median beds | 3 |
| Median size | 1,754 sqft |
| Estimated cash-flow-positive share | 84.4% |
| Median days on market | 73 days |
| New listings (last 30 days) | 25.3% of active |
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