Memphis has a short-term rental market that most cities its size would envy. Guests come for Beale Street, Graceland, Memphis in May, Grizzlies games and the Liberty Bowl, and a steady stream of families come for treatment at St. Jude and Le Bonheur. The challenge is choosing a location guests want and a property the rules allow.
In short: LendingStreet finances Memphis short-term rentals with DSCR loans that can qualify on projected short-term rental revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with a 620 minimum credit score, and purchases go up to 80% LTV with max leverage varying by program. Memphis and Shelby County regulate short-term rentals, so confirm permit and zoning requirements for the specific address before you buy.
Memphis has adopted rules for short-term rentals that include permits or registration, and operators are responsible for hotel occupancy taxes. Requirements can differ depending on whether the property is inside the City of Memphis or in unincorporated Shelby County, and suburbs such as Germantown, Collierville and Bartlett set their own rules, which are often stricter in residential neighborhoods.
Rules have been revised more than once, so check the current requirements with the city and county before you make an offer. Condo buildings Downtown and in Harbor Town, and HOAs in suburban subdivisions, often ban or limit stays under 30 days regardless of city rules.
Most nightly demand clusters in a few areas. Downtown and South Main put guests within walking distance of Beale Street, FedExForum and the National Civil Rights Museum. Midtown, including Cooper-Young, Overton Square and Central Gardens, draws visitors who want restaurants and older homes with character. The medical district, close to St. Jude, Le Bonheur, Methodist University and UTHSC, sees longer stays from families and traveling clinicians.
Whitehaven, near Graceland, has steady tourist traffic, and East Memphis and Cordova serve business travelers and families visiting suburban relatives.
| Area | Main guests | Typical stay | Check before buying |
|---|---|---|---|
| Downtown / South Main | Tourists, event-goers | Weekends, festivals | Condo or HOA rules, parking |
| Midtown (Cooper-Young, Overton Square) | Leisure visitors | Weekends | City permit, neighbor concerns |
| Medical district | Patient families, traveling nurses | Weeks to months | Whether stays fall under STR rules |
| Whitehaven | Graceland visitors | Short stays | Neighborhood condition, insurance |
| Pickwick Lake area | Lake vacationers | Summer | County or state-line rules |
A Memphis specialty is the furnished rental for medical families. Families may need housing for weeks while a child is treated, and nurses and residents rotate in for assignments. These guests value quiet, safety, parking and a short drive to the hospital more than nightlife.
Stays of 30 days or more may be treated differently from nightly rentals under local rules and taxes. Tell us how you plan to rent, since the right program and underwriting can differ.
This example is illustrative and not a quote. An investor buys a three-bedroom Midtown bungalow for $340,000 at an address where a short-term rental permit is available. A revenue projection estimates $40,800 a year, about $3,400 a month.
At 75% LTV the loan is $255,000. Estimated principal and interest is about $1,827. City and county property taxes are budgeted at $470 a month and STR insurance at $230, for a total of about $2,527. Projected revenue covers that payment at about 1.35x.
Cleaning, supplies, platform fees, utilities and the hotel occupancy tax you collect are separate from the loan payment. Budget them in your own operating plan.
| Item | Amount |
|---|---|
| Purchase price | $340,000 |
| Loan at 75% LTV | $255,000 |
| Estimated principal and interest | $1,827 |
| Taxes and STR insurance | $700 |
| Total monthly payment | $2,527 |
| Average projected monthly revenue | $3,400 |
| DSCR on projected revenue | About 1.35x |
A house inside Memphis city limits pays both City of Memphis and Shelby County property taxes. Tennessee assesses residential property at a 25% assessment ratio, and the tax rate applies to that assessed value. Shelby County reappraises on a regular cycle, and a reappraisal can raise values sharply in neighborhoods like Midtown where prices have climbed.
Use the current bill, but ask whether the property's value was recently reset, and budget conservatively if it was not.
Memphis demand is less seasonal than a beach or mountain market, but it has peaks: Memphis in May in spring, summer tourism, football season and the holidays. Late summer heat and January can be slower. Medical stays help keep occupancy steady through the year.
Lenders look at annual projected revenue, so a property that only works on festival weekends is a weak file.
Location inside a neighborhood matters as much as the neighborhood itself. Guests read reviews about safety, parking and noise, and a house two blocks from the action can outperform one on a busy corner. Look at how comparable listings nearby actually perform before trusting a projection.
Investors who want a vacation-home model often look about two hours east to Pickwick Lake, on the Tennessee, Mississippi and Alabama borders, where lake houses rent heavily in summer. Rules depend on the county and state, and some lake communities have their own covenants. Lake properties also bring flood, dock and septic questions to check before buying.
Closer to home, some investors look at Mississippi suburbs such as Southaven and Olive Branch, where rules and taxes differ from Tennessee's. Each city sets its own requirements, so check them directly.
Our STR DSCR loans use our standard terms: loans from $150,000, 620 minimum credit score, 30-year terms available and cash-out up to 75% LTV. Some programs qualify on projected revenue; others use booking history. Have these ready:
Send the address, price and projected revenue through the form below, or call (877) 298-1001. We will run the annual numbers and tell you plainly whether the property fits. If nightly use is not allowed at the address, we can look at it as a medium-term or long-term rental instead.
Memphis and Shelby County regulate short-term rentals, including permit or registration requirements. Check current rules for the specific address.
Downtown, South Main, Midtown areas such as Cooper-Young and Overton Square, the medical district and Whitehaven near Graceland are common choices.
On some programs, yes. Lenders look at annual projected revenue.
Medium-term stays of 30 days or more may be treated differently from nightly rentals. Tell us your plan so we match the right program.
Yes. Properties inside the city pay both City of Memphis and Shelby County property taxes.
Yes. Our STR refinance can use booking history, with cash-out up to 75% LTV depending on the program.
Germantown, Collierville, Bartlett and other suburbs set their own rules, often stricter. HOAs may also prohibit short stays.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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