Real Estate Investing in Memphis, Tennessee (38108)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38108 (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: 17.2% of homes vacant — above national norms.
- Elevated poverty: 29.0% poverty rate — can affect rent collection.
- Lower household income: $29,757 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38108)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38108 Memphis
ZIP 38108 offers what many appreciation markets cannot: an affordable basis at $70K and rent support of $992/mo for rehab-driven equity creation in Shelby County.
Cap rate math of 0.0% understates the return here. Post-rehab, stabilized yields climb, and the 38108 ZIP's older housing stock gives operators the opportunity set to execute.
In Shelby County, 38108 is part of the operational map, not the passive one. The spread between median price and renovated comp reflects the work available.
A renter-heavy, wage-earner demographic anchors 38108. Value-add players rely on that mix — the 58% share is both the tenant source and the buyer pool for future owner-occupied exits.
The strategy in 38108 is forced equity, not market equity. Put differently, entry prices are accommodating at $70K, the returns sit in the renovation budget, not the holding period.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38108
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $57,680 | $1,060 | 13.2% | +7.0% | $28,840 |
| 3BR | $83,379 | $1,390 | 12.0% | +8.6% | $27,793 |
| 4BR | $85,251 | $1,620 | 13.7% | +5.8% | $21,313 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38108 Compare?
| Metric | 38108 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $70,295 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.7% | 2.6% | N/A | 7.7% |
| Avg Rent | $992 | $1,243 | N/A | - |
| Cap Rate | 11.0% | 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 38108 (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 | $70,295 |
| Monthly Rent | $992 |
| Price-to-Rent | 5.9:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 16.9% |
| Cap Rate | 11.0% |
| 5-Year IRR | 13.7% |
📈 Home Appreciation
| 1-Year | -2.4% ▼ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | +2.7% ▲ |
| 10-Year CAGR | +9.7% ▲ |
🏠 Rent Trends
| 1-Year | +9.9% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (11.0%) 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 38108
Population: 18,501
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 38108
Schools in This ZIP Code
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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
What are home prices like in Memphis, TN?
The median home value in Memphis, TN is roughly $70K. That puts it reasonable relative to the TN statewide average.
What is the typical rental rate in Memphis, TN?
Investors in Memphis, TN typically see rents near $992/mo per month against $70K home values - a solid setup for rental cash flow.
Do properties in Memphis, TN satisfy the 1% rule?
The 1% rule is solid territory for Memphis, TN. Rent-to-price at the median is 1.41%, putting many properties within striking distance.
Does BRRRR pencil out in Memphis, TN?
Yes - BRRRR is a strong in Memphis, TN. The $70K home values and $992/mo rents anchor the refinance math.
How should investors approach Memphis, TN?
Most investors in Memphis, TN run a value-add and BRRRR deals strategy. It aligns with the 5.0/5 investability profile and the market fundamentals.
You know 38108 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38108 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 38108 ranks in Memphis, TN-MS-AR
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