Real Estate Investing in Obion, Tennessee (38240)
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Should you buy in 38240 (Obion, TN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.9% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Obion, TN (38240)?
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Market Analysis: 38240 Obion
ZIP 38240 inside Obion County looks affordable on the surface — median value of $163K — but the discount exists for reasons that a careful buyer should understand before committing.
The 38240 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
From an investor standpoint, 38240 offers a low basis, the region around Obion has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Employment concentration in 38240 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
leans the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Obion:
Market Trends
Home Value History (with trend line)
📊 How Does 38240 Compare?
| Metric | 38240 | Obion | Union City, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $163,150 | $163,150 | N/A | $327,001 |
| 5-Year CAGR | 6.4% | 6.4% | N/A | 7.7% |
| Avg Rent | $1,008 | $1,008 | N/A | - |
| Cap Rate | 4.8% | 4.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38240 (Obion, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $163,150 |
| Monthly Rent | $1,008 |
| Price-to-Rent | 13.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.4% |
| Cap Rate | 4.8% |
| 5-Year IRR | 11.2% |
📈 Home Appreciation
| 1-Year | +12.3% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | +6.4% ▲ |
| 10-Year CAGR | +6.4% ▲ |
🏠 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 (4.8%). 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 38240
Population: 1,760
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
Investor Insight: With 3,169 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How does Obion, TN rate as a rental market?
Obion, TN scores 3.0/5 for investability. Home values sit at $163K and rents near $1,008/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Is TN a landlord-friendly state?
Landlord-friendliness in Obion, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
What do rentals go for in Obion, TN?
Rental rates in Obion, TN average $1,008/mo. Tenant demand and $163K home values make the yield look reasonable by investor standards.
Does a duplex house hack pencil in Obion, TN?
For house hackers, Obion, TN is a challenging. The $1,008/mo rent on a unit helps defray the mortgage on a $163K property.
What strategy should investors use in Obion, TN?
A careful cash-flow rentals with hands-on management strategy Obion, TN best. The market produces measured results for that approach at the $163K price point.
You know 38240 now. You don’t know where it ranks.
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How 38240 ranks in Union City, TN
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