Midtown Memphis Rentals: STR vs LTR Returns

[Andrew Glisson]

Midtown is the most contested rental neighborhood in Memphis. Both STR and LTR work here, but they work on different properties.

I manage rentals in Memphis and Midtown is the area I get the most questions about from out-of-state investors. Worth sharing what the data actually looks like.

Why Midtown holds up:

- Medical anchor: St. Jude, UTHSC, Methodist, Le Bonheur, Regional One. Constant traveling-nurse and patient-family demand.

- Education: University of Memphis is 10 minutes east. Rhodes College sits inside the neighborhood.

- Walkability: Cooper-Young, Overton Square, Crosstown Concourse.

- Liberty Park redevelopment moving the long-term price floor up on the eastern edge.

STR side:

- ADR across Midtown is $120-160 in market data

- Walkable Cooper-Young / Overton Square units clear $180+ on weekends

- Demand splits between mid-term medical stays (14-90 nights, lower nightly rate, near-100% occupancy) and weekend leisure

- The operational floor for competing here is high. Out-of-state self-management struggles versus operators with local turnover and screening teams.

LTR side:

- Citywide Memphis 2BR rents averaged $1,307 last cycle, up 18% YoY

- Updated single-family 2BR Midtown rentals near Cooper-Young or Overton Square are pricing $1,250-$1,500. New-construction apartments price higher.

- 21-day average vacancy when priced to current market, not 2022 highs

- Renter profile: medical professionals on multi-year contracts, grad students, young professionals

- Deferred maintenance is the silent killer. Midtown homes are old. HVAC, foundation, drainage problems are real.

Which strategy fits which property:

- 1-3BR walkable, off-street parking, furnishable for under $20K = STR

- 3-4BR family home in Snowden, East Buntyn, Evergreen = LTR

- Many Midtown properties work either way. The right call depends on time horizon, tax situation, and volatility tolerance.

Buy box for either strategy:

- 2-3BR, 1.5-2 bath

- Updated mechanicals (HVAC under 10 years, sewer scoped, roof under 15 years)

- Off-street parking (non-negotiable for STR)

- Property tax under $3,500/year. The 2026 reappraisal hit Memphis investors hard.

Avoid:

- Foundation issues (Memphis clay soil is real)

- No-driveway homes

- "Value-add" listings without your own walk-through

Anyone else seeing the medical mid-term niche outperform straight short-term in Midtown? Curious how others underwrite walkability vs. parking trade-offs in this neighborhood.

-Andrew Glisson