Real Estate Investing in Memphis, Tennessee (38126)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38126 (Memphis, TN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A balanced market — moderate cash flow and moderate appreciation. A "steady" investor profile fits best.
- High vacancy: 16.6% of homes vacant — above national norms.
- Elevated poverty: 45.5% poverty rate — can affect rent collection.
- Lower household income: $19,844 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38126)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38126 Memphis
The 38126 ZIP posts an substantial value-add profile — below-median pricing at $76K, a renter base of 88%, and room for operational improvement.
Investors in 38126 do not buy the market average — they buy the unit they can improve. $76K median pricing and $842/mo comps define the envelope within which the work has to pay.
Relative to TN, 38126 reads as a working-capital ZIP — prices below average, renter share elevated at 88%, and room for operator-led upside.
The 38126 ZIP's demographic trend has been one of stability with upside — population of 5,723, steady renter share, and an incoming cohort that is willing to pay for improved units.
The substantial opportunity in 38126 is buying the worst house on the block, fixing it, and renting it at the top of the local band. That is the strategy, repeated.
Here's what matters if you're considering buying a home in Memphis:
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38126 Compare?
| Metric | 38126 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $76,399 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 6.0% | 2.6% | N/A | 7.7% |
| Avg Rent | $842 | $1,243 | N/A | - |
| Cap Rate | 8.6% | 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 38126 (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 | $76,399 |
| Monthly Rent | $842 |
| Price-to-Rent | 7.6:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 13.2% |
| Cap Rate | 8.6% |
| 5-Year IRR | 14.6% |
📈 Home Appreciation
| 1-Year | +0.3% ▲ |
| 3-Year CAGR | +5.8% ▲ |
| 5-Year CAGR | +6.0% ▲ |
| 10-Year CAGR | +12.0% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (8.6%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38126
Population: 5,723
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 38126
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Compass Community School Midtown Campus
Cummings Elementary/Middle
Soulsville Charter School
A. B. Hill Elementary
Bruce 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 620 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 home values average about $76K. That price point suits investors targeting rentals with $842/mo in monthly income.
Is Memphis, TN suited for a house hack?
House hacking in Memphis, TN is an attractive. With home values around $76K and rents at $842/mo, owner-occupants can offset a meaningful share of PITI.
Does BRRRR pencil out in Memphis, TN?
BRRRR works a strong in Memphis, TN. With $76K ARVs and $842/mo rents, investors who buy right can refinance out most of their capital.
Which real estate strategy fits Memphis, TN?
Investors usually favor value-add and BRRRR deals in Memphis, TN. With home values at $76K and rents near $842/mo, other strategies can work but produce consistent rather than outsized returns.
What is the typical rental rate in Memphis, TN?
Average rent in Memphis, TN is approximately $842/mo per month. Against $76K home values that yields a reasonable rent-to-price ratio.
You know 38126 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38126 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 38126 ranks in Memphis, TN-MS-AR
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