Real Estate Investing in Memphis, Tennessee (38103)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38103 (Memphis, TN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 12.9% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (0.5% CAGR).
- 1-year downturn: Values declined 3.7% in the last year.
What’s happening in Memphis, TN (38103)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38103 Memphis
ZIP 38103 in Memphis, TN carries a resilient set of headwinds. Home values near $321K and rents of $1,559/mo sit inside a market where underwriting has to be tight.
The investment case in 38103 is durable only for operators who understand what they are buying. A $321K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader TN picture, 38103 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
On the rental side, 14,025 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.
Experienced landlords with local relationships tend to find 38103 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 38103
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $201,741 | $1,730 | 6.2% | +3.5% | $201,741 |
| 2BR | $312,811 | $1,910 | 4.4% | +2.5% | $156,405 |
| 3BR | $393,420 | $2,520 | 4.6% | +3.5% | $131,140 |
| 4BR | $612,023 | $2,940 | 3.5% | +2.8% | $153,006 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38103 Compare?
| Metric | 38103 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $321,396 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 0.5% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,559 | $1,243 | N/A | - |
| Cap Rate | 3.8% | 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 38103 (Memphis, TN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 38103 (Memphis, TN)?
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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 | $321,396 |
| Monthly Rent | $1,559 |
| Price-to-Rent | 17.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | 4.2% |
📈 Home Appreciation
| 1-Year | -3.7% ▼ |
| 3-Year CAGR | -2.5% ▼ |
| 5-Year CAGR | +0.5% ▲ |
| 10-Year CAGR | +3.7% ▲ |
🏠 Rent Trends
| 1-Year | -1.4% ▼ |
| 3-Year CAGR | 0.0% ▼ |
| 5-Year CAGR | +0.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.8%). 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 38103
Population: 14,025
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 38103
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
B. T. Washington High
Hollis F. Price Middle College
KIPP Memphis Collegiate Middle
Ida B. Wells Academy ES/MS
Vollentine 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 620 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Memphis, TN a smart market for rental property?
Our data puts Memphis, TN at 2.0/5 for investability. Home prices of $321K and rents around $1,559/mo create a solid backdrop for investor activity.
How much does a house cost in Memphis, TN?
Memphis, TN home values average about $321K. That price point suits investors targeting rentals with $1,559/mo in monthly income.
How tight is the rental market in Memphis, TN?
Memphis, TN vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
How qualified is the tenant pool in Memphis, TN?
Tenant quality in Memphis, TN ranks as solid. Landlords generally report even-keeled occupancy at market rents of $1,559/mo.
What do rentals go for in Memphis, TN?
Expect rents around $1,559/mo per month in Memphis, TN. With home values at $321K, the yield math works out to reasonable levels for rental investors.
You know 38103 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38103 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 38103 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
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