Investment metrics, interactive calculators, and data-driven analysis for Memphis rental properties.
Pre-filled with Memphis medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Memphis.
Memphis, TN has a population of 633,104 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $195,000 paired with median rents of $1,180/mo produces an estimated cap rate of 4.42%.
Property taxes at 1.48% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 7.8% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 4.5x, homes cost about 4.5 times the local median income of $43,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Memphis presents moderate opportunities. Cap rates near 4.42% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.