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Clarksville vs Memphis for Rental Property Investing

Side-by-side comparison of Clarksville, TN and Memphis, TN — cap rates, rent, prices, and investment metrics.

Clarksville wins 5–2 across key metrics
Clarksville leads on cash flow (4.52% vs 4.42% cap rate)
Metric
Clarksville, TN
Memphis, TN
Est. Cap Rate
4.52%
4.42%
Median Home Price
$265,000
$195,000
Median Monthly Rent
$1,380
$1,180
1% Rule
0.52%
0.61%
GRM
16.0x
13.8x
Price / Income
5.1x
4.5x
Property Tax Rate
0.58%
1.48%
Vacancy Rate
5.6%
7.8%
Population Growth
2% / yr
0.3% / yr
Annual Appreciation
3.1%
2.2%
Population
168,050
633,104
Median Income
$52,400
$43,200

Clarksville vs Memphis: Which Is Better for Investors?

Cash flow: Clarksville has the edge with an estimated cap rate of 4.52% compared to Memphis's 4.42%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $265,000 in Clarksville vs $195,000 in Memphis, while rents come in at $1,380/mo and $1,180/mo respectively.

Growth & appreciation: Clarksville is growing faster at 2% annually vs Memphis's 0.3%. Clarksville leads on home value appreciation at 3.1% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.58% in Clarksville vs 1.48% in Memphis — a significant difference that directly impacts net operating income. Vacancy rates of 5.6% and 7.8% are mixed — Clarksville has the tighter rental market.

Bottom line: Clarksville edges out Memphis on most key metrics. While cap rates are moderate at 4.52%, Clarksville's overall profile is stronger. Use our free calculators to model specific deals in Clarksville or Memphis.

Clarksville, TN
4.52% cap rate · $265,000 median · $1,380/mo
Full analysis →
Memphis, TN
4.42% cap rate · $195,000 median · $1,180/mo
Full analysis →
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