Real Estate Investing in Memphis, Tennessee (38127)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38127 (Memphis, TN)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 20.9% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (1.4% CAGR).
- Elevated poverty: 30.3% poverty rate — can affect rent collection.
- Lower household income: $34,781 median — tenant affordability is tighter.
What’s happening in Memphis, TN (38127)?
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Market Analysis: 38127 Memphis
Investors scanning Memphis, TN for forced-equity plays often land on the 38127 ZIP. A a strong candidate for entry near $90K pairs with rents of $1,077/mo to widen the renovation window.
ZIP 38127 favors investors with a contractor on speed dial. Stepping back, the turnkey yield looks ordinary, a renovated unit pulls stronger rent than the unrenovated $1,077/mo average.
Relative to TN, 38127 reads as a working-capital ZIP — prices below average, renter share elevated at 55%, and room for operator-led upside.
Residents in 38127 skew younger than the county average, and that matters for rehab positioning. Younger renters respond to finishes, appliances, and in-unit laundry in ways that move rent.
Strategic fit here is operational. Pro forma discipline, capex reserves, and lender relationships matter more than the marketing pitch.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38127
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $69,525 | $1,190 | 12.3% | +7.6% | $34,763 |
| 3BR | $92,054 | $1,570 | 12.3% | +6.2% | $30,685 |
| 4BR | $118,715 | $1,830 | 11.1% | +6.1% | $29,679 |
| 5BR | $147,538 | — | — | +4.3% | $29,508 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38127 Compare?
| Metric | 38127 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $90,463 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.4% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,077 | $1,243 | N/A | - |
| Cap Rate | 9.3% | 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 38127 (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 | $90,463 |
| Monthly Rent | $1,077 |
| Price-to-Rent | 7.0:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 14.3% |
| Cap Rate | 9.3% |
| 5-Year IRR | 10.7% |
📈 Home Appreciation
| 1-Year | -2.4% ▼ |
| 3-Year CAGR | -0.4% ▼ |
| 5-Year CAGR | +1.4% ▲ |
| 10-Year CAGR | +9.1% ▲ |
🏠 Rent Trends
| 1-Year | -0.1% ▼ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +5.4% ▲ |
The estimated cap rate (9.3%) 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 38127
Population: 39,553
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 38127
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 620 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are rental rates like in Memphis, TN?
Average rent in Memphis, TN is approximately $1,077/mo per month. Against $90K home values that yields a reasonable rent-to-price ratio.
Is the 1% rule achievable in Memphis, TN?
With $1,077/mo rents against $90K home prices, Memphis, TN produces a 1.19% ratio. That is reasonable proximity to the 1% threshold.
What does house hacking look like in Memphis, TN?
For house hackers, Memphis, TN is an attractive. The $1,077/mo rent on a unit helps defray the mortgage on a $90K property.
How well does BRRRR work in Memphis, TN?
BRRRR works a strong in Memphis, TN. With $90K ARVs and $1,077/mo rents, investors who buy right can refinance out most of their capital.
Are homes affordable in Memphis, TN?
Memphis, TN median home values land near $90K. That is reasonable territory for investors looking at $1,077/mo-per-month rentals.
You know 38127 now. You don’t know where it ranks.
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How 38127 ranks in Memphis, TN-MS-AR
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