Real Estate Investing in Memphis, Tennessee (38018)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38018 (Memphis, TN)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
No major risk flags on the data we track.
What’s happening in Memphis, TN (38018)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38018 Memphis
This part of Shelby County is not an easy win. The 38018 ZIP reflects softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The investment case in 38018 is solid only for operators who understand what they are buying. A $291K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
On the rental side, 38018 offers a low basis, the region around Memphis has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 38018 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.
Experienced landlords with local relationships tend to find 38018 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38018
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $189,772 | $1,730 | 6.6% | +6.8% | $94,886 |
| 3BR | $254,151 | $2,280 | 6.5% | +6.4% | $84,717 |
| 4BR | $341,802 | $2,660 | 5.6% | +5.6% | $85,451 |
| 5BR | $434,122 | — | — | +5.4% | $86,824 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38018 Compare?
| Metric | 38018 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $291,199 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.9% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,651 | $1,243 | N/A | - |
| Cap Rate | 4.4% | 6.8% | - | - |
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 38018 (Memphis, TN). Anonymous, moderated, never written by AI.
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Property managers serving Shelby County
Manage rentals here? List your business →Advantage Property Management offers property management services in Memphis, TN, and surrounding areas, including Section 8 property management, maintenance, and renovations. summary from their website
Enterprise Property Management offers property management services in Memphis. summary from their website
Foundation Property Management offers property management services in Memphis, TN. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $291,199 |
| Monthly Rent | $1,651 |
| Price-to-Rent | 14.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 7.3% |
📈 Home Appreciation
| 1-Year | -0.6% ▼ |
| 3-Year CAGR | -1.1% ▼ |
| 5-Year CAGR | +2.9% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 Rent Trends
| 1-Year | +2.7% ▲ |
| 3-Year CAGR | +2.8% ▲ |
| 5-Year CAGR | +2.2% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.4%). 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 38018
Population: 38,357
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 38018
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Dexter School
Mt. Pisgah Middle/High
Riverwood Elementary School
Chimneyrock Elementary School
Macon-Hall Elementary
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 5,147 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are there empty rentals in Memphis, TN?
Occupancy in Memphis, TN runs stable with elevated vacancy. Well-priced units at $1,651/mo lease on reasonable timelines.
Is Memphis, TN landlord-friendly?
Memphis, TN falls under TN landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Is the tenant base reliable in Memphis, TN?
Expect a solid tenant pool in Memphis, TN. The rental market absorbs $1,651/mo rents without meaningful friction.
What is the smart move for investors in Memphis, TN?
Memphis, TN investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($291K prices, $1,651/mo rents) make it a reasonable choice.
Are homes affordable in Memphis, TN?
Median home price in Memphis, TN is near $291K, with a 5-year CAGR of 0.0%. Prices have been consistent and supportive of buy-and-hold strategies.
You know 38018 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38018 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 38018 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
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