Rental Property Investing in Memphis, TN

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The numbers

Median sale price

$89,900

Median monthly rent

$1,095

Rent / price

1.22%

Estimated cap rate

10.5%

Estimated monthly cash flow

$311

Estimated cash-on-cash

18.0%

Sale prices

falling

Rents

flat

County population change (5 yrs)

-1.8%

County unemployment

4.6%

Measured in ZIP 38109 on 2026-10-19. That’s one established investor neighborhood, not the whole city. The cash flow and cash-on-cash figures run the median price and rent through the calculator’s defaults (20% down, 7% interest, 30-year loan, a flat 1.1% property tax rate, standard vacancy, repairs and management), so they describe a typical house in that zip.

What to know about Memphis

Memphis is a logistics town (FedEx has its main hub here), and it has some of the lowest purchase prices of the larger US cities. Tennessee doesn't tax wages or rental income at the state level, which keeps the tax filing simpler for a non-resident owner.

Neighborhood quality, insurance costs and property taxes vary a lot from one part of the city to the next. Sellers in this market often advertise a high rent estimate, so check it against real leases nearby.

Landlord and tenant rules in Tennessee

• Overall: landlord friendly
• Security deposit limit: No statutory cap
• Rent control: no statewide rent control
• Notice for unpaid rent: 14 days (written notice, after a short grace period)

General information only, not legal advice. Landlord-tenant law changes and varies by city/county within a state. Verify current rules with a local attorney or your state's housing authority before relying on this. More on this in tenant-friendly vs landlord-friendly states.

Check a real deal in Memphis

Market medians point you at a city. Whether one house works depends on its own price, rent and repair needs, so paste them into the calculator, or read how cash-on-cash return and a good cap rate are worked out. If you’re buying from far away, the out-of-state guide covers property managers and remote closings.

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