Real Estate Investing in Memphis, Tennessee (38109)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38109 (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: 12.0% of homes vacant — above national norms.
- 1-year downturn: Values declined 3.9% in the last year.
- Elevated poverty: 24.4% poverty rate — can affect rent collection.
- Higher unemployment: 9.2% unemployment — tenant risk signal.
What’s happening in Memphis, TN (38109)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38109 Memphis
ZIP 38109 inside Memphis, TN leans into a value-add thesis. Home values near $92K sit below the state median, and rents of $1,162/mo leave room for forced-equity plays.
The an appealing option for angle here is forced equity, not market equity. ZIP 38109 rewards investors who can execute on scope, timeline, and tenant turnover.
The a strong candidate for piece of regional context is that nearby ZIPs with newer stock and higher basis have priced out of the value-add game. 38109 has not.
Looking more closely, incomes in 38109 sit below the county median, the tenant pool is deep and the demand for upgraded rental stock consistently outruns supply.
BRRRR is the most natural fit. Buy under $92K, rehab, refinance, and the capital recycles in a way turnkey markets cannot replicate.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38109
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $55,210 | $1,080 | 14.1% | +10.9% | $27,605 |
| 3BR | $95,938 | $1,430 | 10.7% | +6.1% | $31,979 |
| 4BR | $118,098 | $1,660 | 10.1% | +6.0% | $29,524 |
| 5BR | $153,938 | — | — | +4.4% | $30,788 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38109 Compare?
| Metric | 38109 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $91,802 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.5% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,162 | $1,243 | N/A | - |
| Cap Rate | 9.9% | 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 38109 (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 | $91,802 |
| Monthly Rent | $1,162 |
| Price-to-Rent | 6.6:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 15.2% |
| Cap Rate | 9.9% |
| 5-Year IRR | 11.4% |
📈 Home Appreciation
| 1-Year | -3.9% ▼ |
| 3-Year CAGR | -0.4% ▼ |
| 5-Year CAGR | +1.5% ▲ |
| 10-Year CAGR | +9.4% ▲ |
🏠 Rent Trends
| 1-Year | +0.1% ▲ |
| 3-Year CAGR | +4.0% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (9.9%) 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 38109
Population: 43,764
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 38109
Schools in This ZIP Code
About Repit School Scores
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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
How much does a house cost in Memphis, TN?
The median home value in Memphis, TN is roughly $92K. That puts it reasonable relative to the TN statewide average.
Is Memphis, TN a viable BRRRR market?
Yes - BRRRR is a strong in Memphis, TN. The $92K home values and $1,162/mo rents anchor the refinance math.
Does the 1% rule work in Memphis, TN?
Yes, many Memphis, TN properties clear the 1% rule. The rent-to-price ratio averages 1.27%, supported by $1,162/mo rents.
What monthly rent should investors expect in Memphis, TN?
Memphis, TN rentals go for roughly $1,162/mo a month. That puts gross yield in solid territory relative to $92K acquisition costs.
Is Memphis, TN suited for a house hack?
House hacking works an attractive in Memphis, TN. Rents of $1,162/mo against $92K acquisition make the strategy solid for owner-occupants.
You know 38109 now. You don’t know where it ranks.
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How 38109 ranks in Memphis, TN-MS-AR
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