Real Estate Investing in Memphis, Tennessee (38106)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38106 (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.
- High vacancy: 21.7% of homes vacant — above national norms.
- Elevated poverty: 30.1% poverty rate — can affect rent collection.
- Higher unemployment: 9.8% unemployment — tenant risk signal.
- Lower household income: $29,098 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38106)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38106 Memphis
In Memphis's 38106 ZIP, the arithmetic favors hands-on owners. Median home values reflects $57K, leaving spread for capex-heavy BRRRR or reposition strategies.
Cap rate math of 0.0% understates the return here. Post-rehab, stabilized yields climb, and the 38106 ZIP's older housing stock gives operators the opportunity set to execute.
In Shelby County, 38106 is part of the operational map, not the passive one. The spread between median price and renovated comp reflects the work available.
The a viable market for angle on demographics here is renter willingness to pay a premium for renovated product. The 62% rental share provides scale for the strategy.
Value-add plays pencil in 38106 when three things line up: a sub-median purchase, a realistic rehab budget, and a post-rehab rent comp that stands up. All three are present in this ZIP.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38106
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $42,734 | $1,040 | 17.5% | +8.5% | $42,734 |
| 2BR | $47,506 | $1,150 | 17.4% | +9.6% | $23,753 |
| 3BR | $63,382 | $1,520 | 17.3% | +9.8% | $21,127 |
| 4BR | $77,390 | $1,770 | 16.5% | +9.9% | $19,347 |
| 5BR | $89,818 | — | — | +8.6% | $17,964 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38106 Compare?
| Metric | 38106 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $57,039 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.8% | 2.6% | N/A | 7.7% |
| Avg Rent | $885 | $1,243 | N/A | - |
| Cap Rate | 12.1% | 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 38106 (Memphis, TN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 38106 (Memphis, TN)?
~25 seconds · no account needed · your report is anonymous
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 | $57,039 |
| Monthly Rent | $885 |
| Price-to-Rent | 5.4:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 18.6% |
| Cap Rate | 12.1% |
| 5-Year IRR | 14.9% |
📈 Home Appreciation
| 1-Year | -2.4% ▼ |
| 3-Year CAGR | +3.2% ▲ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +10.5% ▲ |
🏠 Rent Trends
| 1-Year | -1.6% ▼ |
| 3-Year CAGR | +5.0% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (12.1%) 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 38106
Population: 21,827
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 38106
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
Investor Insight: With 620 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is housing expensive in Memphis, TN?
Memphis, TN median home values land near $57K. That is reasonable territory for investors looking at $885/mo-per-month rentals.
What real estate strategy is ideal for Memphis, TN?
Memphis, TN investors pursuing value-add and BRRRR deals. The underlying economics ($57K prices, $885/mo rents) make it a reasonable choice.
Are 1% rule properties available in Memphis, TN?
With rents of $885/mo on $57K homes, Memphis, TN close to the 1% rule for most properties. The actual rent-to-price ratio is 1.55%.
How strong is Memphis, TN for real estate investors?
Memphis, TN scores 5.0/5 for investability. Home values sit at $57K and rents near $885/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Can you recycle capital via BRRRR in Memphis, TN?
Yes - BRRRR is a strong in Memphis, TN. The $57K home values and $885/mo rents anchor the refinance math.
You know 38106 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38106 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 38106 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 38106 (Memphis)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 38106 (Memphis, TN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.