Real Estate Investing in Butler, Tennessee (37640)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 37640 (Butler, TN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 34.2% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 28.1 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Butler, TN (37640)?
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Market Analysis: 37640 Butler
The 37640 ZIP covers a section of Butler that demands careful diligence. Prices near $306K look accessible, but the work to make a deal cash flow is real.
The investment case in 37640 is healthy only for operators who understand what they are buying. A $306K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader TN picture, 37640 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Demographically, 37640 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 37640 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Butler:
Property Strategy for 37640
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $295,470 | $1,010 | 2.5% | +12.2% | $147,735 |
| 3BR | $426,440 | $1,260 | 2.1% | +11.5% | $142,147 |
Market Trends
Home Value History (with trend line)
📊 How Does 37640 Compare?
| Metric | 37640 | Butler | Johnson City, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $306,242 | $306,242 | N/A | $327,001 |
| 5-Year CAGR | 4.5% | 4.5% | N/A | 7.7% |
| Avg Rent | $909 | $909 | N/A | - |
| Cap Rate | 2.3% | 2.3% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 37640 (Butler, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $306,242 |
| Monthly Rent | $909 |
| Price-to-Rent | 28.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.3% |
| 5-Year IRR | 6.8% |
📈 Home Appreciation
| 1-Year | +0.8% ▲ |
| 3-Year CAGR | +4.0% ▲ |
| 5-Year CAGR | +4.5% ▲ |
| 10-Year CAGR | +6.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.3%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 37640
Population: 3,343
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 37640
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 936 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What price range are homes in Butler, TN?
Butler, TN home values average about $306K. That price point suits investors targeting rentals with $909/mo in monthly income.
Is Butler, TN a good market for buy-and-hold investors?
Yes - Butler, TN a 3.0/5 investability score. With $306K home prices against $909/mo monthly rent, the market delivers a reasonable entry point for new investors.
What does house hacking look like in Butler, TN?
House hacking in Butler, TN is a challenging. With home values around $306K and rents at $909/mo, owner-occupants can offset a meaningful share of PITI.
Are landlord laws favorable in Butler, TN?
Landlord-friendliness in Butler, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Are tenants stable in Butler, TN?
Tenant quality in Butler, TN ranks as solid. Landlords generally report predictable occupancy at market rents of $909/mo.
You know 37640 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 37640 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 37640 ranks in Johnson City, TN
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