Real Estate Investing in Memphis, Tennessee (38104)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38104 (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.
- Declining values: -0.6% 5-year CAGR — values have moved lower.
- Elevated vacancy: 11.5% vacancy may signal weakening demand.
What’s happening in Memphis, TN (38104)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38104 Memphis
This part of Shelby County is not an easy win. The 38104 ZIP clocks in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $255K asset, 38104 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Memphis have seen price recovery that 38104 has not matched. Shelby County data supports the view that the spread is structural rather than temporary.
Resident income in 38104 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 38104 is an operator game, not a passive one. From a cash-flow lens, entry prices of $255K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38104
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $117,599 | $1,330 | 8.1% | +9.0% | $117,599 |
| 2BR | $196,251 | $1,470 | 5.4% | +3.2% | $98,126 |
| 3BR | $282,601 | $1,940 | 4.9% | +2.3% | $94,200 |
| 4BR | $396,276 | $2,260 | 4.1% | +2.7% | $99,069 |
| 5BR | $451,617 | — | — | +2.7% | $90,323 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38104 Compare?
| Metric | 38104 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $254,666 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | N/A | 2.6% | N/A | 7.7% |
| Avg Rent | $1,296 | $1,243 | N/A | - |
| Cap Rate | 4.0% | 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 38104 (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 | $254,666 |
| Monthly Rent | $1,296 |
| Price-to-Rent | 16.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.1% |
| Cap Rate | 4.0% |
| 5-Year IRR | 3.4% |
📈 Home Appreciation
| 1-Year | -2.5% ▼ |
| 3-Year CAGR | -2.2% ▼ |
| 5-Year CAGR | -0.6% ▼ |
| 10-Year CAGR | +4.3% ▲ |
🏠 Rent Trends
| 1-Year | +5.8% ▲ |
| 3-Year CAGR | +1.5% ▲ |
| 5-Year CAGR | +2.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.0%). 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 38104
Population: 22,925
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 38104
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
Frequently Asked Questions
How do experienced investors play Memphis, TN?
Most investors in Memphis, TN run a careful cash-flow rentals with hands-on management strategy. It aligns with the 2.0/5 investability profile and the market fundamentals.
Is TN a landlord-friendly state?
For rental operators, Memphis, TN rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
Is Memphis in TN worth investing in?
The 2.0/5 investability rating in Memphis, TN reflects its $255K prices and $1,296/mo rents. Investors generally consider it a solid option within TN.
What does house hacking look like in Memphis, TN?
Memphis, TN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,296/mo rent level.
Is the tenant base reliable in Memphis, TN?
Memphis, TN draws a consistent base of working renters. Demand at the $1,296/mo rent level is reasonable for standard single-family and small multi rentals.
You know 38104 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38104 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 38104 ranks in Memphis, TN-MS-AR
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