Real Estate Investing in Memphis, Tennessee (38107)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38107 (Memphis, TN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 17.8% of homes vacant — above national norms.
- Higher unemployment: 7.3% unemployment — tenant risk signal.
- Lower household income: $34,325 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38107)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38107 Memphis
The 38107 ZIP reflects an robust value-add profile — below-median pricing at $110K, a renter base of 62%, and room for operational improvement.
Value-add is the defining thesis in 38107. Homes trade near $110K, well below the state median, and rehabbed comps tend to clear meaningfully higher — a classic forced-equity setup.
Relative to TN, 38107 reads as a working-capital ZIP — prices below average, renter share elevated at 62%, and room for operator-led upside.
A renter-heavy, wage-earner demographic anchors 38107. Value-add players rely on that mix — the 62% share is both the tenant source and the buyer pool for future owner-occupied exits.
Experienced operators with contractor networks find 38107 a strong candidate for. First-time flippers often underestimate scope, budget, and timeline, which is how deals here turn sour.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38107
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $77,664 | $1,080 | 10.0% | +8.5% | $38,832 |
| 3BR | $117,596 | $1,430 | 8.8% | +6.4% | $39,199 |
| 4BR | $133,821 | $1,660 | 8.9% | +6.3% | $33,455 |
| 5BR | $165,236 | — | — | +4.4% | $33,047 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38107 Compare?
| Metric | 38107 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $109,789 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.9% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,249 | $1,243 | N/A | - |
| Cap Rate | 8.9% | 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 38107 (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 | $109,789 |
| Monthly Rent | $1,249 |
| Price-to-Rent | 7.3:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 13.7% |
| Cap Rate | 8.9% |
| 5-Year IRR | 11.8% |
📈 Home Appreciation
| 1-Year | +3.1% ▲ |
| 3-Year CAGR | +0.8% ▲ |
| 5-Year CAGR | +2.9% ▲ |
| 10-Year CAGR | +9.1% ▲ |
🏠 Rent Trends
| 1-Year | +3.5% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (8.9%) 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 38107
Population: 14,254
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 38107
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Compass Community School Midtown Campus
Bruce Elementary
Medical District High School
Crosstown High School
Memphis Academy Of Science Engineering Middle/High
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
Do properties in Memphis, TN satisfy the 1% rule?
Memphis, TN delivers a 1.14% rent-to-price ratio on average. Investors targeting the 1% rule will find solid opportunities.
Is Memphis, TN a good market for buy-and-hold investors?
Our data puts Memphis, TN at 5.0/5 for investability. Home prices of $110K and rents around $1,249/mo create a solid backdrop for investor activity.
Where do home prices stand in Memphis, TN?
Memphis, TN median home values land near $110K. That is reasonable territory for investors looking at $1,249/mo-per-month rentals.
Does the BRRRR strategy work in Memphis, TN?
BRRRR works a strong in Memphis, TN. With $110K ARVs and $1,249/mo rents, investors who buy right can refinance out most of their capital.
Does house hacking work in Memphis, TN?
House hacking works an attractive in Memphis, TN. Rents of $1,249/mo against $110K acquisition make the strategy solid for owner-occupants.
You know 38107 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38107 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 38107 ranks in Memphis, TN-MS-AR
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