Thinking About Buying a Short-Term or Mid-Term Rental in the Memphis Area? Here's What You Need to Know Before You Buy (2026 Guide)

If you've been researching how to buy a short-term rental (STR) or mid-term rental (MTR) property in the Memphis area, you've probably landed on sites like AirDNA, Mashvisor, or BiggerPockets and walked away with more numbers than answers. As a licensed Realtor/Broker with eXp Realty who personally owns and operates a short-term rental property right here in Bartlett, I want to give you the real, local, boots-on-the-ground breakdown — the kind of information AirDNA can't give you because they don't know our market, our zoning laws, or our neighborhoods the way a local agent does.

This guide covers everything a smart investor needs before writing an offer on a short-term or mid-term rental property in Memphis, Bartlett, Collierville, Arlington, Germantown, Millington, Lakeland, Atoka, Eads, Piperton, and Rossville.

SHORT-TERM RENTAL VS. MID-TERM RENTAL — WHAT'S THE DIFFERENCE?

Short-Term Rental (STR): Typically booked through Airbnb or VRBO for stays under 30 days. Highest income potential, but requires permits, active management, furnishing, and ongoing turnover (cleaning, restocking, guest communication).

Mid-Term Rental (MTR): Furnished stays of 30 days or more, usually 1-6 months. Popular with traveling nurses (Methodist, Baptist, St. Jude, Regional One), corporate relocations, military families on PCS orders to NSA Mid-South, and people in transition (divorce, home renovation, insurance claims). Lower turnover, steadier income, and in most cases does NOT require a short-term rental permit because stays are 30+ days.

For investors in our suburbs, mid-term rentals are often the smarter starting point. Most of our suburban cities — Bartlett, Collierville, Germantown, Arlington, Millington, Lakeland, Atoka, Eads, Piperton, and Rossville — have residential zoning that restricts or limits true short-term (nightly) rentals. Memphis and unincorporated Shelby County have an established short-term rental permitting process, but many suburban municipalities are far more restrictive, and rules change. This is exactly why you need an agent who will check current zoning BEFORE you write an offer — not after.

WHERE TO BUY FOR EACH STRATEGY

Short-Term Rentals (nightly): Midtown Memphis (Cooper-Young, Central Gardens, Vollintine-Evergreen, Crosstown), Downtown, and areas near Overton Square, Beale Street, AutoZone Park, and the Memphis Zoo tend to perform best for nightly stays. These areas have permit pathways through the City of Memphis / Shelby County and strong year-round tourism, sports, and event-driven demand.

Mid-Term Rentals (30+ days): This is where our suburbs shine. Bartlett, Collierville, Germantown, Arlington, Millington (near NSA Mid-South), Lakeland, Atoka, Eads, Piperton, and Rossville are ideal for furnished housing aimed at travel nurses heading to Methodist Germantown, Baptist Memphis, St. Jude, or Regional One, plus corporate relocations and military PCS families needing 1-6 month bridge housing while they house-hunt.

PERMITS AND REGULATIONS — DON'T SKIP THIS STEP

Memphis and unincorporated Shelby County require a Short-Term Rental Property Permit (Ordinance 5631 / Chapter 5-44) for any rental under 30 days. This includes a zoning check, a Code Enforcement inspection, a $1,000,000 liability insurance requirement, smoke alarms and a fire extinguisher in every unit, and monthly remittance of the 7% state sales tax plus county lodging tax. Operating without a permit can carry daily fines.

Suburban cities each set their own rules, and many restrict nightly rentals in single-family residential zones. Before you buy with an STR strategy, I help my clients verify current zoning and any HOA restrictions for the specific property — not a "similar" one down the street.

DUE DILIGENCE THAT GOES BEYOND THE INSPECTION REPORT

For investment buyers, especially in older Memphis neighborhoods, a standard home inspection isn't enough. One example: many Midtown Memphis homes are close to 100 years old and were originally plumbed with cast iron sewer lines. Iron pipe has a typical lifespan of 75-100 years, and a LOT of Midtown homes are right at or past that mark. A sewer scope (a camera run through the main line) should be a non-negotiable part of your due diligence on any older home, especially one you plan to run as a rental with frequent guest turnover. Replacing a main sewer line can run anywhere from $4,000 to $15,000+ depending on length and whether trenchless repair is an option — a cost that needs to be factored into your offer and your renovation budget, not discovered after closing.

THE AMENITIES THAT ACTUALLY MOVE THE NEEDLE

Once you own the right property in the right location, the amenities you choose can make a measurable difference in income:

Hot tub: Industry data shows hot tubs can boost RevPAR (revenue per available night) by roughly 30-34% in many markets, with some properties seeing 50%+ increases in annual revenue for a $4,000-$8,000 investment.

Pool: In warm-weather markets, pools can drive ADR premiums of 80%+ and are consistently the #1 most-searched amenity on Airbnb.

Pet-friendly: Allowing pets can increase revenue per available night by roughly 24%, with higher average daily rates and more bookings during slower seasons.

Fast Wi-Fi and a dedicated workspace: Essential for remote workers and mid-term corporate/travel nurse stays — often the deciding factor between two similar listings.

Game room or entertainment space: Pool tables, arcade games, and home theaters perform extremely well for family and group travel, which Memphis attracts heavily for sports tournaments, family reunions, and graduations.

Professional design and staging: Professionally designed and photographed listings can see meaningfully higher booking rates and revenue compared to average listings.

FINANCING YOUR INVESTMENT

Most STR/MTR buyers use either a conventional investment property loan (typically 15-25% down) or a DSCR (Debt Service Coverage Ratio) loan, which qualifies based on the property's projected rental income rather than your personal income — a great option for self-employed buyers or those scaling a portfolio. I work with lenders who specialize in both and can walk you through which option fits your situation.

WHY WORK WITH A LOCAL AGENT INSTEAD OF JUST TRUSTING AN ALGORITHM

AirDNA and similar tools can show you average daily rates and occupancy trends, but they can't tell you whether a specific property is zoned for nightly rentals, whether the neighborhood HOA bans Airbnb, whether the sewer line is original cast iron, or which side of a city line offers a faster permit process. As a Realtor who personally owns and operates a short-term rental, I bring both the licensed expertise and the firsthand operator experience to help you avoid the mistakes that cost new investors thousands.

If you're ready to start looking at short-term or mid-term rental investment properties in Bartlett, Collierville, Arlington, Germantown, Millington, Lakeland, Atoka, Eads, Piperton, Rossville, or Midtown Memphis, let's talk through your numbers and your goals.

Venus O. Miller, Realtor/Broker
Exp Realty www.Sellthemidsouth.com
Cell: (901) 461-3210
Office: (888) 519-5113