Real Estate Investing in Paris, Tennessee (38242)
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Should you buy in 38242 (Paris, 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: 16.0% of homes vacant — above national norms.
What’s happening in Paris, TN (38242)?
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Market Analysis: 38242 Paris
The 38242 ZIP in Paris, TN is a local-operator market. Outside capital chasing a $217K entry has to pair deep knowledge with the discount.
The 38242 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Nearby ZIPs in Paris have seen price recovery that 38242 has not matched. Henry County data supports the view that the spread is structural rather than temporary.
Employment concentration in 38242 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 38242 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Paris:
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38242 Compare?
| Metric | 38242 | Paris | Paris, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $216,551 | $216,551 | N/A | $327,001 |
| 5-Year CAGR | 7.6% | 7.6% | N/A | 7.7% |
| Avg Rent | $975 | $975 | N/A | - |
| Cap Rate | 3.5% | 3.5% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38242 (Paris, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $216,551 |
| Monthly Rent | $975 |
| Price-to-Rent | 18.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 11.1% |
📈 Home Appreciation
| 1-Year | +8.2% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +7.6% ▲ |
| 10-Year CAGR | +6.9% ▲ |
🏠 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 (3.5%). 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 38242
Population: 19,619
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 38242
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
Frequently Asked Questions
What investment strategy works best in Paris, TN?
Most investors in Paris, TN run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
Is Paris, TN good for house hacking?
The house hack math a challenging in Paris, TN. Owner-occupant buyers benefit from the $975/mo rents and $217K home values.
What is the typical vacancy rate in Paris, TN?
Occupancy in Paris, TN runs reliable with elevated vacancy. Well-priced units at $975/mo lease on reasonable timelines.
Are homes affordable in Paris, TN?
Paris, TN median home values land near $217K. That is reasonable territory for investors looking at $975/mo-per-month rentals.
Does Paris, TN make sense for an investment property?
With a 3.0/5 investability score, Paris, TN ranks as a solid market for rental property investors. Median prices of $217K and rents of $975/mo drive the underlying numbers.
You know 38242 now. You don’t know where it ranks.
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How 38242 ranks in Paris, TN
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