Real Estate Investing in Memphis, Tennessee (38128)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38128 (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: 14.9% of homes vacant — above national norms.
- Elevated poverty: 23.3% poverty rate — can affect rent collection.
What’s happening in Memphis, TN (38128)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38128 Memphis
The 38128 ZIP in Memphis, TN is a local-operator market. Outside capital chasing a $147K entry has to pair deep knowledge with the discount.
Rent of $1,228/mo on a $147K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 38128 sits below the stated 0.0% once reality is priced in.
ZIP 38128's metrics run below Shelby County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Who lives in 38128 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Experienced landlords with local relationships tend to find 38128 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 38128
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $62,974 | $1,220 | 13.9% | +3.7% | $62,974 |
| 2BR | $88,705 | $1,350 | 11.0% | +7.0% | $44,352 |
| 3BR | $142,519 | $1,780 | 9.0% | +7.2% | $47,506 |
| 4BR | $191,426 | $2,080 | 7.8% | +7.3% | $47,856 |
| 5BR | $224,720 | — | — | +6.3% | $44,944 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38128 Compare?
| Metric | 38128 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $146,949 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 3.5% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,228 | $1,243 | N/A | - |
| Cap Rate | 6.5% | 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 38128 (Memphis, TN). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 38128 (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 | $146,949 |
| Monthly Rent | $1,228 |
| Price-to-Rent | 10.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 10.0% |
| Cap Rate | 6.5% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | -0.2% ▼ |
| 3-Year CAGR | +0.0% ▲ |
| 5-Year CAGR | +3.5% ▲ |
| 10-Year CAGR | +8.0% ▲ |
🏠 Rent Trends
| 1-Year | -0.7% ▼ |
| 3-Year CAGR | +2.0% ▲ |
| 5-Year CAGR | +4.7% ▲ |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (6.5%). 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 38128
Population: 44,027
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 38128
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
How much does a house cost in Memphis, TN?
Expect median prices around $147K in Memphis, TN. The market has run at a 0.0% 5-year CAGR, so entry costs have been consistent.
How deep is the rental pool in Memphis, TN?
Tenant demand in Memphis, TN is solid. The local workforce $1,228/mo rents across most rental classes.
What do landlords charge for rent in Memphis, TN?
Memphis, TN rentals go for roughly $1,228/mo a month. That puts gross yield in solid territory relative to $147K acquisition costs.
Should investors worry about vacancy in Memphis, TN?
Memphis, TN vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Is rental property easy to operate in Memphis, TN?
Rental owners in Memphis, TN deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
You know 38128 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38128 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 38128 ranks in Memphis, TN-MS-AR
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 38128 (Memphis)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 38128 (Memphis, TN).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.