Real Estate Investing in Cottage Grove, Tennessee (38224)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38224 (Cottage Grove, TN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.4% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 27.0 — hard to cash-flow at these prices.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Cottage Grove, TN (38224)?
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Market Analysis: 38224 Cottage Grove
Not every below-median market is a bargain. Cottage Grove's 38224 ZIP posts signals that favor experienced operators who can absorb the risk $271K pricing implies.
For an experienced owner, 38224 can be a worth a close look for hunting ground — but the discount at $271K reflects genuine risk that outside investors often underestimate.
ZIP 38224's metrics run below Henry County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Employment concentration in 38224 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategy in 38224 is an operator game, not a passive one. In practical terms, entry prices of $271K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Cottage Grove:
Market Trends
Home Value History (with trend line)
📊 How Does 38224 Compare?
| Metric | 38224 | Cottage Grove | Paris, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $270,699 | $270,699 | N/A | $327,001 |
| 5-Year CAGR | 6.5% | 6.5% | N/A | 7.7% |
| Avg Rent | $837 | $837 | N/A | - |
| Cap Rate | 2.4% | 2.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38224 (Cottage Grove, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $270,699 |
| Monthly Rent | $837 |
| Price-to-Rent | 27.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.7% |
| Cap Rate | 2.4% |
| 5-Year IRR | 8.9% |
📈 Home Appreciation
| 1-Year | +11.1% ▲ |
| 3-Year CAGR | +5.7% ▲ |
| 5-Year CAGR | +6.5% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.4%). 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 38224
Population: 923
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
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Should investors worry about vacancy in Cottage Grove, TN?
Vacancy in Cottage Grove, TN is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $837/mo.
How much do tenants pay in Cottage Grove, TN?
Rent in Cottage Grove, TN is around $837/mo. The resulting rent-to-value relationship with $271K pricing is reasonable for most investor models.
Which real estate strategy fits Cottage Grove, TN?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Cottage Grove, TN. The numbers - $271K homes against $837/mo rents - support that play.
What does house hacking look like in Cottage Grove, TN?
The a challenging house-hack environment in Cottage Grove, TN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Should investors consider Cottage Grove, TN?
The 3.0/5 investability rating in Cottage Grove, TN reflects its $271K prices and $837/mo rents. Investors generally consider it a solid option within TN.
You know 38224 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38224 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 38224 ranks in Paris, TN
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