Real Estate Investing in Memphis, Tennessee (38114)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38114 (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: 19.2% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (1.2% CAGR).
- Elevated poverty: 29.2% poverty rate — can affect rent collection.
- Higher unemployment: 8.7% unemployment — tenant risk signal.
What’s happening in Memphis, TN (38114)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38114 Memphis
Investors scanning Memphis, TN for forced-equity plays often land on the 38114 ZIP. A a solid fit for entry near $74K pairs with rents of $974/mo to widen the renovation window.
Value-add is the defining thesis in 38114. Homes trade near $74K, well below the state median, and rehabbed comps tend to clear meaningfully higher — a classic forced-equity setup.
Relative to TN, 38114 reads as a working-capital ZIP — prices below average, renter share elevated at 55%, and room for operator-led upside.
Residents in 38114 skew younger than the county average, and that matters for rehab positioning. Younger renters respond to finishes, appliances, and in-unit laundry in ways that move rent.
ZIP 38114 fits investors who can swing a hammer — or pay someone to swing one well. BRRRR, fix-and-flip, and fix-and-hold all work when the rehab scope is matched to the rent lift.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38114
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $60,997 | $990 | 11.7% | +3.2% | $60,997 |
| 2BR | $57,023 | $1,090 | 13.8% | +6.0% | $28,511 |
| 3BR | $77,602 | $1,440 | 13.4% | +6.2% | $25,867 |
| 4BR | $106,684 | $1,680 | 11.3% | +6.6% | $26,671 |
| 5BR | $136,053 | — | — | +4.7% | $27,211 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38114 Compare?
| Metric | 38114 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $74,233 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.2% | 2.6% | N/A | 7.7% |
| Avg Rent | $974 | $1,243 | N/A | - |
| Cap Rate | 10.2% | 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 38114 (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 | $74,233 |
| Monthly Rent | $974 |
| Price-to-Rent | 6.4:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 15.7% |
| Cap Rate | 10.2% |
| 5-Year IRR | 11.4% |
📈 Home Appreciation
| 1-Year | +2.8% ▲ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | +1.2% ▲ |
| 10-Year CAGR | +9.8% ▲ |
🏠 Rent Trends
| 1-Year | +4.9% ▲ |
| 3-Year CAGR | +5.2% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (10.2%) 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 38114
Population: 20,440
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 38114
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Compass Community School Midtown Campus
Cummings Elementary/Middle
Soulsville Charter School
A. B. Hill Elementary
Bruce 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
Investor Insight: With 2,760 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Which real estate strategy fits Memphis, TN?
Investors who focus on value-add and BRRRR deals typically do well in Memphis, TN. The numbers - $74K homes against $974/mo rents - support that play.
Should investors consider Memphis, TN?
With a 4.0/5 investability score, Memphis, TN ranks as a solid market for rental property investors. Median prices of $74K and rents of $974/mo drive the underlying numbers.
What are home prices like in Memphis, TN?
The median home value in Memphis, TN is roughly $74K. That puts it reasonable relative to the TN statewide average.
Is Memphis, TN a good market for FHA house hackers?
Memphis, TN offers an attractive house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $974/mo rent level.
Can you find 1% rule deals in Memphis, TN?
Yes, many Memphis, TN properties clear the 1% rule. The rent-to-price ratio averages 1.31%, supported by $974/mo rents.
You know 38114 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38114 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 38114 ranks in Memphis, TN-MS-AR
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