Real Estate Investing in Memphis, Tennessee (38115)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38115 (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: 15.4% of homes vacant — above national norms.
- Elevated poverty: 22.4% poverty rate — can affect rent collection.
- Lower household income: $39,176 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38115)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38115 Memphis
Not every below-median market is a bargain. Memphis's 38115 ZIP posts signals that favor experienced operators who can absorb the risk $166K pricing implies.
The 38115 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 38115 among TN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The 38115 ZIP's population of 36,878 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that comes in at the need for careful underwriting.
New investors are better served looking at Memphis's stable or hybrid ZIPs before stepping into 38115. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38115
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $32,775 | $1,230 | 27.0% | — | $32,775 |
| 2BR | $75,476 | $1,360 | 13.0% | +4.4% | $37,738 |
| 3BR | $165,428 | $1,800 | 7.8% | +5.0% | $55,143 |
| 4BR | $197,505 | $2,090 | 7.6% | +5.3% | $49,376 |
| 5BR | $214,674 | — | — | +5.6% | $42,935 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38115 Compare?
| Metric | 38115 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $166,446 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.5% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,057 | $1,243 | N/A | - |
| Cap Rate | 5.0% | 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 38115 (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 | $166,446 |
| Monthly Rent | $1,057 |
| Price-to-Rent | 13.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.6% |
| Cap Rate | 5.0% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | -0.2% ▼ |
| 3-Year CAGR | -1.2% ▼ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 Rent Trends
| 1-Year | -10.7% ▼ |
| 3-Year CAGR | -1.7% ▼ |
| 5-Year CAGR | +1.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.0%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38115
Population: 36,878
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 38115
Schools in This ZIP Code
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
Is Memphis, TN better for rentals, flips, or BRRRR?
Investors usually favor careful cash-flow rentals with hands-on management in Memphis, TN. With home values at $166K and rents near $1,057/mo, other strategies can work but produce stable rather than outsized returns.
How quickly do rentals get leased in Memphis, TN?
Occupancy in Memphis, TN runs consistent with elevated vacancy. Well-priced units at $1,057/mo lease on reasonable timelines.
What do landlords charge for rent in Memphis, TN?
Average rent in Memphis, TN is approximately $1,057/mo per month. Against $166K home values that yields a reasonable rent-to-price ratio.
How landlord-friendly is Memphis, TN?
Memphis, TN falls under TN landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Is it easy to find good tenants in Memphis, TN?
Memphis, TN draws a even-keeled base of working renters. Demand at the $1,057/mo rent level is reasonable for standard single-family and small multi rentals.
You know 38115 now. You don’t know where it ranks.
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How 38115 ranks in Memphis, TN-MS-AR
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