Real Estate Investing in Memphis, Tennessee (38112)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38112 (Memphis, TN)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 13.2% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (1.0% CAGR).
- 1-year downturn: Values declined 3.2% in the last year.
- Elevated poverty: 25.3% poverty rate — can affect rent collection.
What’s happening in Memphis, TN (38112)?
Click any question — our AI will research it live from the web and show you sources.
Local Pulse Report
AI-researched developments and news for Memphis, TN (38112). Updated on demand as visitors ask.
Growth & development in Memphis, TN (38112) Updated 37 days ago
Opportunities
- Morgan Steel is expanding its Memphis headquarters with an $11.7 million investment, creating 119 new jobs. — This expands employment opportunities and strengthens the local economy. Area Development
- FedEx plans an $18 million expansion of its Memphis hub to boost international freight operations. — This investment enhances logistics infrastructure and supports job growth. localmemphis.com
- IKEA Memphis unveiled a new store design on January 15, 2025, with a Central Planning Hub and expanded services. — This offers enhanced shopping convenience and specialized home furnishing support. IKEA U.S.
- Primark opened its first Tennessee location in Memphis' Wolfchase Galleria on July 29, 2025. — This provides new retail options and fashion at value prices for shoppers. TSCG
- Numerous new construction homes are available in the 38112 zip code, offering various sizes and price points. — This expands housing choices for residents in the area. Trulia, Zillow
Concerns
- Memphis Light, Gas, and Water eliminated 33 positions as part of a restructuring effort on June 16, 2026. — This reduces employment opportunities for individuals in the utility sector. localmemphis.com
- Hollywood Feed cut 20 corporate jobs due to economic challenges in the pet industry on June 16, 2026. — This results in job losses within the corporate sector. localmemphis.com
- WK Kellogg filed notice to lay off 117 workers at its Memphis facility on June 16, 2026. — This leads to significant job reductions in the manufacturing sector. localmemphis.com
- JBS USA closed its Memphis packing plant, impacting over 200 employees on June 16, 2026. — This results in a substantial loss of jobs in the food processing industry. localmemphis.com
- Prairie Farms Dairy closed its Memphis manufacturing facility, impacting around 120 employees, effective May 30, 2025. — This led to job losses in the dairy manufacturing sector. Memphis Commercial Appeal
AI-generated from public web sources. Always verify with official records. Not financial, legal, or investment advice.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38112
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $74,231 | $1,080 | 10.5% | +8.4% | $37,115 |
| 3BR | $149,405 | $1,430 | 6.9% | +5.3% | $49,802 |
| 4BR | $325,694 | $1,670 | 3.7% | +3.7% | $81,424 |
| 5BR | $464,560 | — | — | +3.3% | $92,912 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38112 Compare?
| Metric | 38112 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $124,787 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.0% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,254 | $1,243 | N/A | - |
| Cap Rate | 7.8% | 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 38112 (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 | $124,787 |
| Monthly Rent | $1,254 |
| Price-to-Rent | 8.3:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 12.1% |
| Cap Rate | 7.8% |
| 5-Year IRR | 8.8% |
📈 Home Appreciation
| 1-Year | -3.2% ▼ |
| 3-Year CAGR | -2.8% ▼ |
| 5-Year CAGR | +1.0% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 Rent Trends
| 1-Year | +11.9% ▲ |
| 3-Year CAGR | +7.2% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (7.8%) 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 38112
Population: 16,798
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 38112
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Compass Community School Midtown Campus
KIPP Memphis Collegiate High School
Bruce Elementary
Jackson Elementary
Kingsbury Elementary
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
Frequently Asked Questions
Should investors consider Memphis, TN?
Yes - Memphis, TN a 4.0/5 investability score. With $125K home prices against $1,254/mo monthly rent, the market delivers a reasonable entry point for new investors.
Is Memphis, TN suited for a house hack?
House hacking in Memphis, TN is reasonable to execute. Prices around $125K and rents of $1,254/mo solid owner-occupant economics.
Are rents high in Memphis, TN?
Average rent in Memphis, TN is approximately $1,254/mo per month. Against $125K home values that yields a reasonable rent-to-price ratio.
Does the BRRRR strategy work in Memphis, TN?
Memphis, TN BRRRR deals are a strong. With proper buy-side discipline, operators can recycle most of their capital post-refinance.
How much does a house cost in Memphis, TN?
Median home price in Memphis, TN is near $125K, with a 5-year CAGR of 0.0%. Prices have been steady and supportive of buy-and-hold strategies.
You know 38112 now. You don’t know where it ranks.
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How 38112 ranks in Memphis, TN-MS-AR
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