Real Estate Investing in Union City, Tennessee (38261)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38261 (Union City, TN)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 9.7% vacancy may signal weakening demand.
What’s happening in Union City, TN (38261)?
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Market Analysis: 38261 Union City
The 38261 ZIP in Union City, TN is a local-operator market. Outside capital chasing a $173K entry has to pair deep knowledge with the discount.
Rent of $1,021/mo on a $173K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 38261 sits below the stated 0.0% once reality is priced in.
In the broader TN picture, 38261 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Who lives in 38261 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The right play in 38261 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 Union City:
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 38261 Compare?
| Metric | 38261 | Union City | Union City, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $173,065 | $173,065 | N/A | $327,001 |
| 5-Year CAGR | 6.9% | 6.9% | N/A | 7.7% |
| Avg Rent | $1,021 | $1,021 | N/A | - |
| Cap Rate | 4.6% | 4.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38261 (Union City, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $173,065 |
| Monthly Rent | $1,021 |
| Price-to-Rent | 14.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.1% |
| Cap Rate | 4.6% |
| 5-Year IRR | 11.5% |
📈 Home Appreciation
| 1-Year | +10.1% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +6.9% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 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 (4.6%). 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 38261
Population: 16,338
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 38261
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.
Frequently Asked Questions
Is the tenant base reliable in Union City, TN?
The renter base in Union City, TN is reasonable for the $1,021/mo price point. Screening well and pricing to market typically yields stable tenants.
Is Union City, TN a good market for FHA house hackers?
Union City, TN offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,021/mo rent level.
What is the average home sale price in Union City, TN?
Typical homes in Union City, TN go for around $173K. The 5-year CAGR of 0.0% reliable price movement.
Are landlord laws favorable in Union City, TN?
Rental owners in Union City, TN deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is Union City, TN a good market for buy-and-hold investors?
Our data puts Union City, TN at 3.0/5 for investability. Home prices of $173K and rents around $1,021/mo create a solid backdrop for investor activity.
You know 38261 now. You don’t know where it ranks.
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How 38261 ranks in Union City, TN
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