Real Estate Investing in Memphis, Tennessee (38111)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38111 (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: 12.3% of homes vacant — above national norms.
What’s happening in Memphis, TN (38111)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38111 Memphis
Investors eyeing 38111 need to respect the fundamentals at play. Home values of $134K come alongside slower price movement and elevated management overhead.
Distressed markets are won on execution, not on spreadsheets. ZIP 38111 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 38111 among TN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The 38111 ZIP's population of 43,308 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
Strategically, 38111 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Memphis:
Property Strategy for 38111
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $82,788 | $1,120 | 9.7% | +4.0% | $82,788 |
| 2BR | $99,166 | $1,240 | 9.0% | +6.0% | $49,583 |
| 3BR | $136,679 | $1,640 | 8.6% | +4.8% | $45,560 |
| 4BR | $275,602 | $1,910 | 5.0% | +3.6% | $68,900 |
| 5BR | $732,104 | — | — | +3.3% | $146,421 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38111 Compare?
| Metric | 38111 | Memphis | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $134,255 | $150,680 | N/A | $327,001 |
| 5-Year CAGR | 1.9% | 2.6% | N/A | 7.7% |
| Avg Rent | $1,289 | $1,243 | N/A | - |
| Cap Rate | 7.5% | 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 38111 (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 | $134,255 |
| Monthly Rent | $1,289 |
| Price-to-Rent | 8.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.5% |
| Cap Rate | 7.5% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +2.9% ▲ |
| 3-Year CAGR | -1.5% ▼ |
| 5-Year CAGR | +1.9% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 Rent Trends
| 1-Year | +8.9% ▲ |
| 3-Year CAGR | +5.3% ▲ |
| 5-Year CAGR | +5.4% ▲ |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.5%). 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 38111
Population: 43,308
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 38111
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Rozelle Elementary
University Middle
Bethel Grove Elementary
Alcy Elementary
Campus School
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 2,760 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is TN a landlord-friendly state?
TN law landlord-friendly for landlords, and Memphis inherits those rules. Investors should still review local ordinances for rental licensing.
What investment strategy works best in Memphis, TN?
A careful cash-flow rentals with hands-on management strategy Memphis, TN best. The market produces reliable results for that approach at the $134K price point.
Is housing expensive in Memphis, TN?
Expect median prices around $134K in Memphis, TN. The market has run at a 0.0% 5-year CAGR, so entry costs have been reliable.
Is Memphis, TN a smart market for rental property?
Memphis, TN stands at an investability rating of 3.0/5, with median home values near $134K and average rents around $1,289/mo. That combination puts it in the notable tier for investor interest.
Are renters plentiful in Memphis, TN?
The tenant pool in Memphis, TN is solid, supported by local employment and population fundamentals. Rents of $1,289/mo are well-absorbed by the market.
You know 38111 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38111 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 38111 ranks in Memphis, TN-MS-AR
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