Real Estate Investing in Memphis, Tennessee (38134)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38134 (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.
No major risk flags on the data we track.
What’s happening in Memphis, TN (38134)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38134 Memphis
Investors eyeing 38134 need to respect the fundamentals at play. Home values of $228K come alongside slower price movement and elevated management overhead.
The 38134 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Looking more closely, 38134 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.
The 38134 ZIP's population of 42,500 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that shows the need for careful underwriting.
The right play in 38134 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38134
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $141,791 | $1,270 | 6.4% | +6.6% | $70,895 |
| 3BR | $212,941 | $1,680 | 5.7% | +6.6% | $70,980 |
| 4BR | $251,260 | $1,950 | 5.6% | +6.3% | $62,815 |
| 5BR | $289,251 | — | — | +6.2% | $57,850 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38134 Compare?
| Metric | 38134 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $228,119 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 4.0% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,274 | $1,243 | N/A | - |
| Cap Rate | 4.4% | 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 38134 (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 | $228,119 |
| Monthly Rent | $1,274 |
| Price-to-Rent | 14.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.7% |
| Cap Rate | 4.4% |
| 5-Year IRR | 8.3% |
📈 Home Appreciation
| 1-Year | +2.3% ▲ |
| 3-Year CAGR | +0.8% ▲ |
| 5-Year CAGR | +4.0% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 Rent Trends
| 1-Year | -3.8% ▼ |
| 3-Year CAGR | +0.7% ▲ |
| 5-Year CAGR | +1.6% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.4%). 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 38134
Population: 42,500
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 38134
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 does Memphis, TN rate as a rental market?
Our data puts Memphis, TN at 3.0/5 for investability. Home prices of $228K and rents around $1,274/mo create a solid backdrop for investor activity.
What is the typical vacancy rate in Memphis, TN?
Expect elevated vacancy in Memphis, TN. Rents at $1,274/mo are absorbed by the tenant base without meaningful lag.
What is the median home value in Memphis, TN?
Memphis, TN home values average about $228K. That price point suits investors targeting rentals with $1,274/mo in monthly income.
Is Memphis, TN good for landlords?
Rental owners in Memphis, TN deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
How should investors approach Memphis, TN?
A careful cash-flow rentals with hands-on management strategy Memphis, TN best. The market produces steady results for that approach at the $228K price point.
You know 38134 now. You don’t know where it ranks.
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How 38134 ranks in Memphis, TN-MS-AR
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