Is Cordova, Tennessee Good for Airbnb Investment?

To start an Airbnb in Cordova, Tennessee, begin by researching Shelby County and Memphis regulations since Cordova is an unincorporated community within Memphis city limits, where short-term rentals require a business license from the City of Memphis and compliance with zoning ordinances that typically allow STRs in residential areas with proper permits. Obtain necessary permits including a Memphis business license ($15-50 annually), Tennessee state business license, and ensure your property meets fire safety codes and health department requirements. Find a suitable property by analyzing Cordova's market demand near attractions like Shelby Farms Park and FedEx corporate headquarters, focusing on 2-4 bedroom homes or condos in neighborhoods like Cordova Station or Forest Hill Irene that attract business travelers and families, with properties typically costing $200,000-400,000. Furnish the space with quality furniture, linens, kitchen essentials, WiFi, smart TV, and local guidebooks, budgeting $10,000-25,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photos highlighting Cordova's suburban appeal and proximity to Memphis attractions, setting competitive rates around $80-150 per night based on local market analysis. Manage operations by establishing check-in procedures, hiring local cleaning services (typically $50-80 per turnover), maintaining 24/7 guest communication, and potentially partnering with property management companies like RedAwning or Vacasa if managing remotely, while ensuring compliance with Tennessee's 9.25% sales tax on short-term rentals and maintaining proper insurance coverage.

To identify profitable STR properties in Cordova, Tennessee, focus on locations within 15-20 minutes of downtown Memphis attractions like Beale Street and Graceland, prioritizing neighborhoods with low crime rates and easy highway access via I-40 and I-240. Target 3-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these appeal to families and business travelers visiting Memphis. Conduct pricing analysis by researching comparable Airbnb and VRBO listings in Cordova and surrounding areas like Germantown and Collierville, aiming for properties that can generate $100-150 per night with 60-70% occupancy rates. Research competition using AirDNA and STR analytics tools to identify market saturation levels and seasonal demand patterns, particularly during Memphis music festivals and FedEx corporate events. Utilize resources like the Shelby County property records, Memphis tourism data, and local STR management companies such as RedAwning or Vacasa to understand market dynamics, while ensuring compliance with Memphis-Shelby County zoning regulations and any HOA restrictions that may limit short-term rentals in specific Cordova subdivisions.

To obtain an Airbnb/STR permit in Cordova, Tennessee, you must apply through Shelby County since Cordova is an unincorporated community within the county jurisdiction. Begin by contacting the Shelby County Code Enforcement Office at 901-222-7000 or visiting their office at 814 Jefferson Avenue, Memphis, TN 38103 to obtain the short-term rental permit application. Required documents typically include a completed STR application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Memphis Fire Department, liability insurance policy with minimum $1 million coverage naming Shelby County as additional insured, floor plan showing maximum occupancy, contact information for a local responsible party within 30 miles, and business license from Shelby County Revenue Department. The application fee is approximately $200-300 annually, with additional inspection fees of around $75-100. Submit your complete application package and schedule required inspections for fire safety, building code compliance, and zoning verification. The approval timeline typically takes 4-6 weeks from submission of complete application, though this can extend to 8-10 weeks during peak periods. Cordova-specific requirements include adherence to residential zoning restrictions, parking requirements of one space per bedroom plus one additional space, noise ordinance compliance with quiet hours from 10 PM to 7 AM, maximum occupancy limits based on square footage and bedrooms, and mandatory posting of permit number and emergency contact information at the property entrance.

Short-term rentals (STRs) in Cordova, Tennessee are generally legal but subject to Shelby County regulations since Cordova is an unincorporated community within the county. As of 2023, Shelby County requires STR operators to obtain a business license and comply with zoning restrictions, with STRs typically prohibited in residential areas zoned R-1 through R-6 but allowed in commercial and mixed-use zones. Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must collect and remit local occupancy taxes. The county implemented stricter enforcement measures in 2022 following complaints about noise and parking issues, requiring operators to provide 24-hour contact information and respond to complaints within two hours. Cordova's proximity to Memphis and its suburban character means most residential neighborhoods restrict STRs, though some areas near commercial corridors along Germantown Parkway and Macon Road may permit them depending on specific zoning classifications.

The best areas for Airbnb investment in Cordova, Tennessee include the neighborhoods near Shelby Farms Park, particularly around Germantown Parkway and Macon Road, which attract tourists visiting the massive urban park and outdoor recreation facilities. The Wolfchase Galleria area along Stage Road offers strong potential due to business travelers visiting the major shopping center and nearby corporate offices including FedEx operations. Properties near the Memphis International Airport corridor benefit from airline crew layovers and business travelers, while the historic Cordova area around Macon Road provides charm for visitors exploring local heritage sites. The Dexter Lake area attracts families and groups seeking lakefront recreation, and neighborhoods near major hotels like Hampton Inn and Holiday Inn Express capture overflow demand during peak Memphis tourism seasons including Beale Street Music Festival and Elvis Week. Areas close to major employers like International Paper and various logistics companies in the I-40 corridor generate consistent business travel demand throughout the year.

Airbnb properties in Cordova, Tennessee are subject to multiple lodging taxes including Tennessee's state sales tax of 7% and state hotel occupancy tax of 1.5%, totaling 8.5% in state-level taxes. Shelby County imposes an additional hotel/motel tax of 6%, bringing the combined rate to approximately 14.5%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Tennessee around 2018. Airbnb remits these taxes monthly to the Tennessee Department of Revenue and Shelby County on behalf of hosts, though individual hosts should verify their registration status with local authorities. Properties rented for 30 days or longer are generally exempt from occupancy taxes, and some jurisdictions may have minimum rental value thresholds below which taxes don't apply. Hosts should also be aware that Memphis, which encompasses the Cordova area, may have additional local tourism or lodging fees that could apply depending on the specific location and rental duration.

To start an Airbnb in Cordova, Tennessee, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $250,000-$280,000 based on median home prices in the Memphis suburb area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run approximately $1,500-$2,500. Permits and fees in Shelby County include business license ($50-$100), short-term rental permit ($200-$400), and potential HOA approval costs totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,500 annually, significantly higher than standard homeowner's policies. Utilities including electricity, water, internet, cable, and trash service average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs encompass utilities, cleaning services ($75-$100 per turnover), maintenance reserves, platform fees (3% Airbnb, 3-5% VRBO), property management if outsourced (20-30%), and marketing, totaling approximately $8,000-$12,000. Additional considerations include potential property management software subscriptions, welcome amenities, and emergency repair funds.

Airbnb properties in Cordova, Tennessee, a suburb of Memphis, typically generate annual revenues of $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $65-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (15-25% of revenue if outsourced), insurance ($800-$1,500 annually), and maintenance costs ($2,000-$4,000 yearly). Profit margins typically range from 15-35% for well-managed properties, with higher-end homes near Shelby Farms Park or Wolf River achieving occupancy rates of 65-75% and stronger margins around 25-35%. Success factors include proximity to Memphis International Airport (15 minutes away), competitive pricing against hotels in the $80-$140 range, professional photography, responsive guest communication, and targeting business travelers and families visiting Memphis attractions. Properties within 20 minutes of downtown Memphis, Graceland, or major medical facilities like Baptist Memorial Hospital tend to outperform, with some hosts reporting monthly revenues of $2,500-$4,200 during peak seasons, though the market faces increasing competition from new listings and regulatory considerations in Shelby County.

Airbnb investments in Cordova, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% based on current market conditions. Properties in this Memphis suburb benefit from proximity to FedEx headquarters and Memphis International Airport, driving consistent business traveler demand alongside leisure guests visiting Graceland and downtown Memphis attractions. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with average daily rates of $85-120 and occupancy rates of 65-75% annually. The market shows particular strength in 2-3 bedroom single-family homes and townhomes priced between $150,000-250,000, where investors can expect gross rental yields of 15-22% before expenses, with net returns settling around 10-16% after accounting for property management, maintenance, and platform fees.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in Cordova, Tennessee. Local real estate agents in the Memphis metropolitan area who focus on investment properties include Keller Williams Realty agents specializing in rental properties, RE/MAX agents with short-term rental expertise, and Crye-Leike Realtors who understand the Cordova market dynamics. National services like Mashvisor provide data analytics for Airbnb investment properties, while AirDNA offers market analysis and revenue projections for the Memphis-Cordova area. Local property management companies such as RedAwning and Vacasa operate in the Tennessee market and can assist with both acquisition and management of short-term rental properties. Investment-focused real estate companies like BiggerPockets connect investors with local agents familiar with STR regulations in Shelby County, and platforms like Roofstock occasionally feature turnkey short-term rental properties in the greater Memphis area including Cordova.