Real Estate Investing in Memphis, Tennessee (38105)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38105 (Memphis, 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 balanced market — moderate cash flow and moderate appreciation. A "steady" investor profile fits best.
- High vacancy: 20.0% of homes vacant — above national norms.
- Elevated poverty: 26.3% poverty rate — can affect rent collection.
- Lower household income: $26,250 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38105)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38105 Memphis
ZIP 38105 inside Memphis, TN leans into a value-add thesis. Home values near $112K sit below the state median, and rents of $1,158/mo leave room for forced-equity plays.
The an appealing option for angle here is forced equity, not market equity. ZIP 38105 rewards investors who can execute on scope, timeline, and tenant turnover.
Statewide, TN value-add investors migrate toward ZIPs with 38105's profile — older stock, soft but real rent growth, and $112K pricing that keeps rehab math workable.
The resident base in 38105 runs younger and more tenure-renter than county averages. 90% of 5,151 households lease, which is the demand source for post-rehab rent lifts.
ZIP 38105 fits investors who can swing a hammer — or pay someone to swing one well. BRRRR, fix-and-flip, and fix-and-hold all work when the rehab scope is matched to the rent lift.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38105
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $103,536 | $1,060 | 7.4% | +11.6% | $51,768 |
| 3BR | $96,251 | $1,400 | 10.5% | +12.9% | $32,084 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38105 Compare?
| Metric | 38105 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $111,586 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 7.5% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,158 | $1,243 | N/A | - |
| Cap Rate | 8.1% | 6.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38105 (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 | $111,586 |
| Monthly Rent | $1,158 |
| Price-to-Rent | 8.0:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 12.5% |
| Cap Rate | 8.1% |
| 5-Year IRR | 15.6% |
📈 Home Appreciation
| 1-Year | +4.6% ▲ |
| 3-Year CAGR | +2.2% ▲ |
| 5-Year CAGR | +7.5% ▲ |
| 10-Year CAGR | +12.4% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (8.1%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38105
Population: 5,151
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 38105
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
B. T. Washington High
Compass Community School Midtown Campus
Bruce Elementary
Hollis F. Price Middle College
Medical District High School
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
How does Memphis, TN stack up for property investment?
Investors tracking Memphis, TN will find a 5.0/5 rating supported by $112K median home values and $1,158/mo rents. That profile suits long-term holders targeting even-keeled returns.
Does house hacking make sense in Memphis, TN?
Memphis, TN is a an attractive market for house hackers. FHA or conventional owner-occupant buyers find the $112K price point reasonable to enter.
Are rents high in Memphis, TN?
Rent in Memphis, TN is around $1,158/mo. The resulting rent-to-value relationship with $112K pricing is reasonable for most investor models.
Can BRRRR investors find deals in Memphis, TN?
Investors running BRRRR in Memphis, TN see a strong outcomes. Deal flow and rehab execution matter more than the macro here.
Does Memphis, TN rent-to-price ratio clear the 1% rule?
Yes, many Memphis, TN properties clear the 1% rule. The rent-to-price ratio averages 1.04%, supported by $1,158/mo rents.
You know 38105 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38105 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 38105 ranks in Memphis, TN-MS-AR
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