Real Estate Investing in Memphis, Tennessee (38125)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38125 (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.
No major risk flags on the data we track.
What’s happening in Memphis, TN (38125)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38125 Memphis
ZIP 38125 inside Shelby looks affordable on the surface — median value of $280K — but the discount exists for reasons that a careful buyer should understand before committing.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $280K asset, 38125 is the wrong submarket. If the plan prices in friction, the yield can still work.
Statewide comparisons place 38125 among TN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The 38125 ZIP's population of 42,793 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that posts the need for careful underwriting.
New investors are better served looking at Memphis's stable or hybrid ZIPs before stepping into 38125. 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 38125
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $159,273 | $1,550 | 7.0% | +5.8% | $79,636 |
| 3BR | $250,904 | $2,050 | 5.9% | +6.7% | $83,635 |
| 4BR | $313,094 | $2,380 | 5.5% | +6.2% | $78,273 |
| 5BR | $375,463 | — | — | +6.1% | $75,093 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38125 Compare?
| Metric | 38125 | Memphis | Tennessee |
|---|---|---|---|
| Home Value | $279,758 | $150,680 | $327,001 |
| 5-Year CAGR | 3.4% | 2.6% | 7.7% |
| Avg Rent | $1,517 | $1,243 | - |
| Cap Rate | 4.2% | 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 38125 (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 | $279,758 |
| Monthly Rent | $1,517 |
| Price-to-Rent | 15.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.5% |
| Cap Rate | 4.2% |
| 5-Year IRR | 7.7% |
📈 Home Appreciation
| 1-Year | +0.0% ▲ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | +3.4% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 Rent Trends
| 1-Year | -3.2% ▼ |
| 3-Year CAGR | +0.5% ▲ |
| 5-Year CAGR | +0.4% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.2%). 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 38125
Population: 42,793
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 38125
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 5,147 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Do rentals sit vacant long in Memphis, TN?
Vacancy risk in Memphis, TN is elevated. That supports steady cash flow for typical rental holds.
Which investment style suits Memphis, TN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Memphis, TN. The numbers - $280K homes against $1,517/mo rents - support that play.
Should investors consider Memphis, TN?
Memphis, TN rates 3.0/5 for investability. With median values at $280K and rents near $1,517/mo, the market offers reasonable fundamentals for rental investors.
What are home prices like in Memphis, TN?
Memphis, TN home values average about $280K. That price point suits investors targeting rentals with $1,517/mo in monthly income.
What is the typical rental rate in Memphis, TN?
Rental rates in Memphis, TN average $1,517/mo. Tenant demand and $280K home values make the yield look reasonable by investor standards.
You know 38125 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38125 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.
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