ZIP Codes That Pass the 1% Rule in Memphis, TN-MS-AR (2026)
Where monthly rent is at least 1% of the purchase price — the quick screen investors use before running full numbers.
| # | ZIP | City | Home value | Rent | Cap rate | 5-yr growth |
|---|---|---|---|---|---|---|
| 1 | 38106 1% rule | Memphis, TN | $57,039 | $885 | 12.11% | 2.8% |
| 2 | 72331 1% rule | Earle, AR | $66,893 | $954 | 11.12% | -1.6% |
| 3 | 38108 1% rule | Memphis, TN | $70,295 | $992 | 11.00% | 2.7% |
| 4 | 38114 1% rule | Memphis, TN | $74,233 | $974 | 10.23% | 1.2% |
| 5 | 38109 1% rule | Memphis, TN | $91,802 | $1,162 | 9.87% | 1.5% |
| 6 | 38127 1% rule | Memphis, TN | $90,463 | $1,077 | 9.29% | 1.4% |
| 7 | 38107 1% rule | Memphis, TN | $109,789 | $1,249 | 8.87% | 2.9% |
| 8 | 38126 1% rule | Memphis, TN | $76,399 | $842 | 8.60% | 6.0% |
| 9 | 38105 1% rule | Memphis, TN | $111,586 | $1,158 | 8.09% | 7.5% |
| 10 | 38112 1% rule | Memphis, TN | $124,787 | $1,254 | 7.84% | 1.0% |
Ranked from Repit’s own ZIP-level data — Zillow home values and rents, HUD fair-market rents where Zillow has no coverage, and U.S. Census vacancy. Cap rate is gross: annual rent over purchase price, before financing and expenses. Every ZIP above links to its full free page. How we calculate this →
Same metro, different strategy
Cash Flow in Memphis, TN-MS-AR · Appreciation in Memphis, TN-MS-AR · Affordable in Memphis, TN-MS-AR
Or see the full Memphis, TN-MS-AR metro profile.