Real Estate Investing in Somerville, Tennessee (38068)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38068 (Somerville, TN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 10.9% vacancy may signal weakening demand.
What’s happening in Somerville, TN (38068)?
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Market Analysis: 38068 Somerville
Investors eyeing 38068 need to respect the fundamentals at play. Home values of $304K come alongside slower price movement and elevated management overhead.
The investment case in 38068 is substantial only for operators who understand what they are buying. A $304K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Somerville have seen price recovery that 38068 has not matched. Fayette County data supports the view that the spread is structural rather than temporary.
In practical terms, 10,854 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The right play in 38068 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Somerville:
Property Strategy for 38068
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $288,506 | $1,390 | 3.5% | +8.7% | $96,169 |
| 4BR | $375,495 | $1,620 | 3.1% | +6.4% | $93,874 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38068 Compare?
| Metric | 38068 | Somerville | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $303,788 | $303,788 | N/A | $327,001 |
| 5-Year CAGR | 5.2% | 5.2% | N/A | 7.7% |
| Avg Rent | $2,051 | $2,051 | N/A | - |
| Cap Rate | 5.3% | 5.3% | - | - |
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 38068 (Somerville, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $303,788 |
| Monthly Rent | $2,051 |
| Price-to-Rent | 12.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.1% |
| Cap Rate | 5.3% |
| 5-Year IRR | 10.4% |
📈 Home Appreciation
| 1-Year | +4.0% ▲ |
| 3-Year CAGR | +3.3% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 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 (5.3%). 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 38068
Population: 10,854
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 38068
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.
Frequently Asked Questions
Are rents high in Somerville, TN?
Rents in Somerville, TN run near $2,051/mo. Compared with median home prices of $304K that produces solid gross yields for typical rentals.
What are home prices like in Somerville, TN?
Median home price in Somerville, TN is near $304K, with a 5-year CAGR of 0.0%. Prices have been even-keeled and supportive of buy-and-hold strategies.
How should investors approach Somerville, TN?
In Somerville, TN the robust play is typically careful cash-flow rentals with hands-on management. The combination of $304K prices and $2,051/mo rents suits that approach.
Are eviction rules reasonable in Somerville, TN?
Somerville, TN falls under TN landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
How tight is the rental market in Somerville, TN?
Somerville, TN carries elevated vacancy risk. Expect steady absorption at market rents of $2,051/mo.
You know 38068 now. You don’t know where it ranks.
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How 38068 ranks in Memphis, TN-MS-AR
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