Real Estate Investing in Memphis, Tennessee (38122)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38122 (Memphis, TN)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Elevated vacancy: 9.3% vacancy may signal weakening demand.
- Elevated poverty: 24.9% poverty rate — can affect rent collection.
What’s happening in Memphis, TN (38122)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38122 Memphis
The 38122 ZIP in Memphis, TN is a local-operator market. Outside capital chasing a $126K entry has to pair deep knowledge with the discount.
Distressed markets are won on execution, not on spreadsheets. ZIP 38122 comes in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Put differently, 38122 offers a low basis, the region around Memphis has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 38122 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Experienced landlords with local relationships tend to find 38122 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 38122
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $101,729 | $1,240 | 8.8% | +8.7% | $50,864 |
| 3BR | $133,555 | $1,640 | 8.8% | +8.0% | $44,518 |
| 4BR | $156,766 | $1,910 | 8.8% | +6.9% | $39,191 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38122 Compare?
| Metric | 38122 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $125,805 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 3.9% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,151 | $1,243 | N/A | - |
| Cap Rate | 7.1% | 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 38122 (Memphis, TN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 38122 (Memphis, TN)?
~25 seconds · no account needed · your report is anonymous
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 | $125,805 |
| Monthly Rent | $1,151 |
| Price-to-Rent | 9.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.0% |
| Cap Rate | 7.1% |
| 5-Year IRR | 11.0% |
📈 Home Appreciation
| 1-Year | +0.3% ▲ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | +3.9% ▲ |
| 10-Year CAGR | +9.0% ▲ |
🏠 Rent Trends
| 1-Year | +6.5% ▲ |
| 3-Year CAGR | +5.0% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.1%). 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 38122
Population: 25,310
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 38122
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
KIPP Memphis Collegiate High School
University Middle
Jackson Elementary
Kingsbury Elementary
Wells Station 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 5,147 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Can I live-in-and-rent in Memphis, TN?
Memphis, TN is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $126K price point reasonable to enter.
What is the typical renter like in Memphis, TN?
Tenant demand in Memphis, TN is solid. The local workforce $1,151/mo rents across most rental classes.
How much should I expect to pay for a home in Memphis, TN?
Memphis, TN home values average about $126K. That price point suits investors targeting rentals with $1,151/mo in monthly income.
Is TN a landlord-friendly state?
TN law landlord-friendly for landlords, and Memphis inherits those rules. Investors should still review local ordinances for rental licensing.
What strategy should investors use in Memphis, TN?
In Memphis, TN the robust play is typically careful cash-flow rentals with hands-on management. The combination of $126K prices and $1,151/mo rents suits that approach.
You know 38122 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38122 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 38122 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 38122 (Memphis)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 38122 (Memphis, TN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.