Real Estate Investing in Henderson, Tennessee (38340)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38340 (Henderson, 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.
- Elevated vacancy: 11.4% vacancy may signal weakening demand.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Henderson, TN (38340)?
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Market Analysis: 38340 Henderson
Not every below-median market is a bargain. Henderson's 38340 ZIP registers signals that favor experienced operators who can absorb the risk $180K pricing implies.
Rent of $1,008/mo on a $180K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 38340 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Henderson have seen price recovery that 38340 has not matched. Chester County data supports the view that the spread is structural rather than temporary.
A solid renter share of 27% in 38340 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 38340 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 Henderson:
Market Trends
Home Value History (with trend line)
📊 How Does 38340 Compare?
| Metric | 38340 | Henderson | Jackson, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $179,576 | $179,576 | N/A | $327,001 |
| 5-Year CAGR | 3.6% | 3.6% | N/A | 7.7% |
| Avg Rent | $1,008 | $1,008 | N/A | - |
| Cap Rate | 4.4% | 4.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38340 (Henderson, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $179,576 |
| Monthly Rent | $1,008 |
| Price-to-Rent | 14.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.7% |
| Cap Rate | 4.4% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +3.4% ▲ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +3.6% ▲ |
| 10-Year CAGR | +5.6% ▲ |
🏠 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 (4.4%). 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 38340
Population: 12,274
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 38340
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
How strong is Henderson, TN for real estate investors?
Yes - Henderson, TN a 3.0/5 investability score. With $180K home prices against $1,008/mo monthly rent, the market delivers a reasonable entry point for new investors.
What do landlords charge for rent in Henderson, TN?
Rental rates in Henderson, TN average $1,008/mo. Tenant demand and $180K home values make the yield look reasonable by investor standards.
Is Henderson, TN landlord-friendly?
Rental owners in Henderson, TN deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Do landlords face vacancy issues in Henderson, TN?
Henderson, TN sees elevated vacancy, which is reasonable relative to the broader TN rental market.
Is Henderson, TN a good market for FHA house hackers?
The a challenging house-hack environment in Henderson, TN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
You know 38340 now. You don’t know where it ranks.
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How 38340 ranks in Jackson, TN
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