Memphis, TN Rental Market Analysis
Updated March 2026 · Population: 628,127 · Data for rental property investors
Median Home Price
$155,000
Median Rent
$1,100/mo
Avg Cap Rate
9%
Avg Cash on Cash
11%
Home Price Growth
+3.5% YoY
Rent Growth
+3.8% YoY
Vacancy Rate
7.5%
Property Tax Rate
1.7%
Sample Deal: Median Memphis Rental Property
Purchase Price
$155,000
$155,000
Down Payment (25%)
$38,750
$38,750
Monthly Rent
$1,100/mo
$1,100/mo
Est. Monthly Mortgage
$735/mo
$735/mo
NOI (Annual)
$8,225
$8,225
DSCR
0.93
0.93
* Based on 25% down, 6.5% interest, 30-year term. Includes taxes, insurance, and vacancy allowance. Does not include maintenance, management, or capital expenditures.
Why Invest in Memphis?
No state income tax. FedEx HQ employs 30,000+ locally. Logistics capital of the South.
Major Employers in Memphis
Understanding the local employment base is critical for evaluating rental demand stability. Memphis's economy is anchored by:
FedExSt. JudeMethodist Le BonheurAutoZoneInternational Paper
Best Neighborhoods for Rental Investors
Bartlett
Germantown
Cordova
Collierville
Whitehaven
Top Zip Codes for Investors
3811838115381163810938128
Investor Tip: Memphis
FedEx logistics hub creates strong blue-collar rental demand. Eastern suburbs best for risk-adjusted returns.
Analyze Your Memphis Deal
Use becvio's free calculators to run the numbers on any Memphis property.