Real Estate Investing in Memphis, Tennessee (38116)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38116 (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: 17.5% of homes vacant — above national norms.
- Elevated poverty: 24.5% poverty rate — can affect rent collection.
- Higher unemployment: 8.3% unemployment — tenant risk signal.
What’s happening in Memphis, TN (38116)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38116 Memphis
ZIP 38116 in Memphis, TN carries a significant set of headwinds. Home values near $156K and rents of $908/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 38116 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within TN, ZIP 38116 trails on several market indicators that neighboring Shelby County submarkets outperform. The gap is real and healthy enough to shape underwriting.
Stepping back, 41,393 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Experienced landlords with local relationships tend to find 38116 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38116
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $97,783 | $1,250 | 9.2% | +7.2% | $48,892 |
| 3BR | $148,400 | $1,650 | 8.0% | +5.2% | $49,467 |
| 4BR | $188,111 | $1,920 | 7.3% | +5.3% | $47,028 |
| 5BR | $231,796 | — | — | +5.8% | $46,359 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38116 Compare?
| Metric | 38116 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $155,547 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.9% | 2.6% | N/A | 7.7% |
| Avg Rent | $908 | $1,243 | N/A | - |
| Cap Rate | 4.6% | 6.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38116 (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 | $155,547 |
| Monthly Rent | $908 |
| Price-to-Rent | 14.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.0% |
| Cap Rate | 4.6% |
| 5-Year IRR | 6.4% |
📈 Home Appreciation
| 1-Year | -0.6% ▼ |
| 3-Year CAGR | -0.7% ▼ |
| 5-Year CAGR | +1.9% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 Rent Trends
| 1-Year | -7.0% ▼ |
| 3-Year CAGR | +0.1% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.6%). 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 38116
Population: 41,393
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 38116
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?
In Memphis, TN the median home value sits at $156K. Against the broader TN market, that reads as reasonable for most investors.
Is Memphis, TN landlord-friendly?
TN ranks as a landlord-friendly state for landlord-tenant law. Memphis generally follows the statewide framework, so landlords face reasonable operating rules.
How qualified is the tenant pool in Memphis, TN?
Expect a solid tenant pool in Memphis, TN. The rental market absorbs $908/mo rents without meaningful friction.
Does house hacking make sense in Memphis, TN?
House hacking in Memphis, TN is reasonable to execute. Prices around $156K and rents of $908/mo solid owner-occupant economics.
Are there empty rentals in Memphis, TN?
Memphis, TN sees elevated vacancy, which is reasonable relative to the broader TN rental market.
You know 38116 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38116 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 38116 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
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