Real Estate Investing in Memphis, Tennessee (38118)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38118 (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: 17.8% of homes vacant — above national norms.
- Elevated poverty: 24.9% poverty rate — can affect rent collection.
- Higher unemployment: 7.7% unemployment — tenant risk signal.
What’s happening in Memphis, TN (38118)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38118 Memphis
Not every below-median market is a bargain. Memphis's 38118 ZIP reflects signals that favor experienced operators who can absorb the risk $124K pricing implies.
Distressed markets are won on execution, not on spreadsheets. ZIP 38118 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 38118 among TN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The demographic picture in 38118 includes headwinds that any investor should price in. Income distribution skews lower than Memphis averages, and tenant stability requires active management.
seems to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38118
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $77,439 | $1,230 | 11.4% | +1.3% | $38,719 |
| 3BR | $121,782 | $1,620 | 9.6% | +5.4% | $40,594 |
| 4BR | $144,184 | $1,890 | 9.4% | +4.4% | $36,046 |
| 5BR | $159,746 | — | — | +1.9% | $31,949 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38118 Compare?
| Metric | 38118 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $124,413 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 2.1% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,175 | $1,243 | N/A | - |
| Cap Rate | 7.4% | 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 38118 (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 | $124,413 |
| Monthly Rent | $1,175 |
| Price-to-Rent | 8.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.3% |
| Cap Rate | 7.4% |
| 5-Year IRR | 9.5% |
📈 Home Appreciation
| 1-Year | +1.3% ▲ |
| 3-Year CAGR | -0.6% ▼ |
| 5-Year CAGR | +2.1% ▲ |
| 10-Year CAGR | +8.4% ▲ |
🏠 Rent Trends
| 1-Year | -6.1% ▼ |
| 3-Year CAGR | -0.6% ▼ |
| 5-Year CAGR | +3.0% ▲ |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.4%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38118
Population: 39,162
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 38118
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
What price range are homes in Memphis, TN?
Memphis, TN median home values land near $124K. That is reasonable territory for investors looking at $1,175/mo-per-month rentals.
Is Memphis, TN a smart market for rental property?
Memphis, TN scores 3.0/5 for investability. Home values sit at $124K and rents near $1,175/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
What is the tenant pool like in Memphis, TN?
The renter base in Memphis, TN is reasonable for the $1,175/mo price point. Screening well and pricing to market typically yields reliable tenants.
How strict are landlord regulations in Memphis, TN?
Landlord-friendliness in Memphis, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Does house hacking work in Memphis, TN?
Memphis, TN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,175/mo rent level.
You know 38118 now. You don’t know where it ranks.
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How 38118 ranks in Memphis, TN-MS-AR
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