Introduction
Memphis, TN, known as the Home of the Blues and the Birthplace of Rock ‘n’ Roll, offers incredible investment opportunities for short-term rental investors. From bustling cultural hubs to up-and-coming neighborhoods, these areas provide high gross yields and impressive annual revenues. Let’s dive into the top zip codes for maximizing your investment in Memphis.
38126: South Memphis & Downtown Proximity
- Gross Yield: 43%
- Annual Revenue: $32,439
- Zillow Home Value: $75.5K
Zip code 38126 is located in South Memphis, close to the heart of downtown and near major attractions like Beale Street and the National Civil Rights Museum. With a gross yield of 43%, this area is one of the most profitable for short-term rental investments. The affordable Zillow home value of $75.5K paired with an annual revenue of $32,439 makes it a prime choice for investors. The neighborhood’s proximity to key cultural sites and recent redevelopment efforts are attracting both tourists and business travelers.
38108: North Memphis & Shelby Forest Area
- Gross Yield: 41%
- Annual Revenue: $28,082
- Zillow Home Value: $69.3K
Situated in North Memphis, zip code 38108 features a gross yield of 41%, with an annual revenue of $28,082 and a Zillow home value of $69.3K. This area has historically been more industrial but is now seeing a rise in interest due to its affordability and potential for growth. Investors can take advantage of the neighborhood’s proximity to Shelby Forest and emerging development projects. It’s ideal for budget-conscious guests and families looking for a more peaceful experience.
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38106: Soulsville & Mississippi Boulevard Corridor
- Gross Yield: 31%
- Annual Revenue: $18,395
- Zillow Home Value: $60.3K
Located in the historic Soulsville neighborhood, zip code 38106 features a gross yield of 31% and annual revenue of $18,395. The Zillow home value is an accessible $60.3K, making it a viable option for new investors. This area is rich in history, with attractions like the Stax Museum of American Soul Music drawing music enthusiasts. The affordable property prices and steady demand for cultural tourism make it a promising investment choice.
38114: Orange Mound & Belt Line
- Gross Yield: 27%
- Annual Revenue: $19,844
- Zillow Home Value: $73.3K
Zip code 38114 covers the Orange Mound and Belt Line neighborhoods. With a gross yield of 27% and annual revenue of $19,844, it offers a balance between affordability and profitability. Zillow home values average $73.3K, and the area is known for its strong community spirit and vibrant history. Orange Mound is one of the oldest African American communities in the country, and recent efforts to revitalize the area have increased interest among tourists and cultural visitors.
Conclusion
Memphis provides a diverse landscape for short-term rental investments, from the lively downtown areas to historically rich neighborhoods. Each of these zip codes offers unique opportunities to maximize your returns, catering to a wide range of guests drawn to the city’s musical legacy, southern hospitality, and ongoing urban transformation.
