Memphis, TN Airbnb Market Data, Statistics, and Occupancy Rates

Memphis Short-Term Rental Market Overview

Memphis stands out as an affordable entry point for short-term rental investors, with average home values around $259,997 and an above-average revenue-to-price ratio that makes the math work even at moderate occupancy levels. The market's 816 active Airbnb listings generate an average annual revenue of $18,126 per property, with larger homes commanding significantly higher returns. While occupancy sits at 31% — slightly above Tennessee's 29% state average — the city's music tourism, event-driven weekends, and cultural draw from Beale Street and Graceland provide a steady baseline of demand that investors can build on with the right property and pricing strategy.

Key Market Statistics

According to Rabbu market data, the Memphis short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Memphis

Memphis appeals to STR investors primarily because its low property costs paired with above-average revenue-to-price ratios create a favorable yield equation that's hard to match in pricier Tennessee markets.

Expert Market Assessment

"Memphis presents an attractive — though not without caveats — opportunity for STR investors willing to navigate moderate occupancy levels. The market's strength lies in its revenue-to-price ratio: relatively affordable acquisitions paired with respectable nightly rates make yield potential compelling, especially for 3- to 5-bedroom properties that punch well above their weight in monthly revenue. Seasonality is a real factor here, with revenue swinging from a low of $960 in February to a peak of $2,003 in May, so investors should budget for leaner winter months. Overall, this is a market that rewards operators who price dynamically and invest in amenities that match the guest expectations already prevalent across Memphis listings."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Memphis

Average revenue by month in Memphis

Memphis shows clear seasonality, with May ($2,003) and July ($1,783) leading the pack while February ($960) marks the lowest point — a spread of over $1,000 between peak and trough. Investors should expect roughly five months of above-average performance from March through August, with winter months requiring tighter budgeting.

Active Airbnb listings by property size in Memphis

One-bedroom units dominate supply with 282 listings (35% of the market), followed by 2- and 3-bedroom properties at 186 and 182 respectively. The 5-bedroom and 6+ bedroom segments are notably thin at just 20 and 22 listings each, which may represent a supply gap worth targeting given their superior revenue performance.

Average daily rate (ADR) by property size in Memphis

ADR scales steeply with bedroom count in Memphis, rising from $89 for 1-bedroom units to $488 for 6+ bedroom properties — a nearly 5.5x premium. The sharpest jump occurs between 3 bedrooms ($174) and 4 bedrooms ($252), suggesting that mid-size upgrades deliver meaningful nightly rate increases.

Average RevPAN by property size in Memphis

Revenue per available night climbs dramatically with property size, from $27 for 1-bedrooms to $194 for 6+ bedroom homes. The 5-bedroom segment at $125 RevPAN delivers strong efficiency relative to its size, making it a compelling sweet spot for investors balancing acquisition cost against per-night yield.

Average occupancy rates by property size in Memphis

Occupancy rates are relatively flat across most property sizes (29–32%), but 5-bedroom and 6+ bedroom properties stand out at 40% — roughly 10 percentage points above the market average. This suggests that larger group-oriented properties enjoy stronger and more consistent demand, which translates directly into better cash-flow reliability.

Average monthly revenue by property size in Memphis

Monthly revenue ranges from $949 for 1-bedroom units up to $6,136 for 6+ bedroom properties, with each step up in bedroom count adding meaningfully to the bottom line. Three-bedroom properties at $1,993/month represent a solid middle-ground option for investors who want above-average returns without the complexity of managing a very large property.

Average annual revenue by property size in Memphis

Annual revenue potential scales significantly with property size: 1-bedroom listings average $11,389 while 6+ bedroom properties reach $73,643 — over six times more. For investors focused on maximizing return, 4-bedroom ($34,802) and 5-bedroom ($40,770) properties offer strong annual revenue with relatively manageable operational demands.

Most common amenities for Airbnb listings in Memphis

Parking (98%) and full kitchens (97%) are near-universal in Memphis listings, establishing them as baseline guest expectations rather than differentiators. Amenities like pools (6%), gyms (7%), and EV chargers (4%) remain rare, offering potential for hosts to stand out — particularly with pools, which could boost summer bookings in this warm Southern market.

Understanding Memphis's ROI Score: 61/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Memphis earns a 61 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' band — driven primarily by its above-average revenue-to-price ratio, which reflects the city's affordable home values relative to the rental income properties can generate. The score is tempered by below-average occupancy stability, meaning revenue can fluctuate meaningfully between peak and off-peak seasons, and investors should factor that variability into their underwriting. Pairing this data with thorough local regulatory research and a dynamic pricing strategy will help investors capture the upside Memphis has to offer.

Short-Term Rental Regulations in Memphis

Understanding local STR regulations is essential before investing in Memphis. Here's the current regulatory landscape:

Permit Requirements

Memphis, Tennessee may require short-term rental operators to obtain a permit or register their property with the city before listing on platforms like Airbnb. Investors should verify current requirements directly with the Memphis Division of Planning and Development and Shelby County offices, as STR regulations in Tennessee can vary by municipality.

Key Restrictions

Common restrictions that may apply in Memphis include occupancy limits, minimum stay requirements, noise ordinances, and parking mandates. Some neighborhoods may have HOA rules that restrict or prohibit short-term rentals entirely, and the city could impose caps on the number of permits issued in certain areas. It's advisable to review both city ordinances and any applicable homeowners' association covenants before purchasing.

Tax Obligations

Short-term rental hosts in Tennessee are typically subject to state and local occupancy taxes, as well as sales tax on rental income. Many booking platforms collect and remit these taxes automatically, but operators should confirm their obligations with the Tennessee Department of Revenue and local tax authorities to ensure full compliance.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Memphis can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Memphis should see continued moderate demand growth, with average market growth trends holding steady and supply-demand dynamics remaining balanced. Seasonal patterns suggest revenue will concentrate in the spring and summer months, with May and July historically being the strongest performers. Investors can reasonably expect ADR to hold near its current $150 level or edge up 1–3%, though occupancy stability — currently rated below average — means cash-flow planning should account for softer winter months when monthly revenue can dip below $1,000. The 131% year-over-year growth in active listings signals rising investor interest, so early movers who differentiate on quality and amenities will be better positioned."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Memphis, TN

What is the average Airbnb occupancy rate in Memphis?

The average occupancy rate for Airbnb listings in Memphis is currently 31%, which edges slightly above Tennessee's statewide average of 29%. Occupancy varies by property size — 5-bedroom and 6+ bedroom properties lead at 40%, while 2-bedroom units average around 29%. Seasonal fluctuations and pricing strategy can significantly impact individual property performance.

How much do Airbnb hosts make in Memphis?

On average, Airbnb hosts in Memphis earn approximately $1,510 per month or $18,126 per year based on trailing 12-month performance data. Revenue varies considerably by property size: 1-bedroom units average about $949/month, while 6+ bedroom homes can generate roughly $6,136/month. Peak months like May can push monthly earnings above $2,000 for the market overall.

Is Memphis a good market for Airbnb investment?

Memphis scores a 61 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market's standout strength is its above-average revenue-to-price ratio, driven by affordable home values averaging $259,997 combined with reasonable nightly rates. However, occupancy stability is rated below average, so investors should plan for seasonal variability and consider larger properties that tend to achieve higher occupancy and revenue.

What is the average daily rate (ADR) for Airbnb in Memphis?

The average daily rate for Airbnb listings in Memphis is $150, which is significantly below Tennessee's statewide average of $309. ADR scales meaningfully with property size — studios and 1-bedrooms average $89–$92 per night, while 4-bedroom properties command $252 and 6+ bedroom homes reach $488 per night.

Are short-term rentals legal in Memphis?

Short-term rentals do operate in Memphis, with over 816 active Airbnb listings currently in the market. However, local regulations, permit requirements, and zoning restrictions may apply. Investors should check directly with Memphis city authorities and review any HOA or neighborhood-specific rules before purchasing a property for short-term rental use.

When is peak season for Airbnb in Memphis?

Peak season in Memphis runs primarily from March through May, with May being the highest-earning month at an average of $2,003 in revenue. July also performs strongly at $1,783. The slowest months are January and February, when average revenue drops to $1,023 and $960 respectively. This spring-summer concentration aligns with Memphis's event calendar and warmer-weather tourism.

How many Airbnbs are there in Memphis?

As of April 2026, there are 816 active Airbnb listings in Memphis. The supply is dominated by 1-bedroom properties (282 listings), followed by 2-bedroom (186) and 3-bedroom (182) units. Larger properties with 5 or more bedrooms make up a smaller share of the market, with only 42 listings combined, potentially signaling less competition in that segment.

How is Airbnb revenue calculated in Memphis?

The annual and monthly revenue figures shown for Memphis are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Memphis market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking performance
• Home value data sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and may not capture very recent market shifts or regulatory changes. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before investing.