Real Estate Investing in Selmer, Tennessee (38375)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38375 (Selmer, 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: 15.8% 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 Selmer, TN (38375)?
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Market Analysis: 38375 Selmer
Not every below-median market is a bargain. Selmer's 38375 ZIP reports signals that favor experienced operators who can absorb the risk $161K pricing implies.
From an investor standpoint, the numbers look inviting — $161K purchase price, 0.0% nominal cap — the work to hit that pro forma in 38375 is substantial and deserves full respect.
Statewide comparisons place 38375 among TN's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Demographically, 38375 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 38375 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 Selmer:
Property Strategy for 38375
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $122,454 | $930 | 5.5% | +12.8% | $61,227 |
| 3BR | $187,075 | $1,290 | 5.0% | +10.8% | $62,358 |
| 4BR | $268,831 | $1,440 | 3.9% | +10.4% | $67,208 |
Market Trends
Home Value History (with trend line)
📊 How Does 38375 Compare?
| Metric | 38375 | Selmer | Tennessee |
|---|---|---|---|
| Home Value | $161,483 | $161,483 | $327,001 |
| 5-Year CAGR | 6.6% | 6.6% | 7.7% |
| Avg Rent | $837 | $837 | - |
| Cap Rate | 4.0% | 4.0% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38375 (Selmer, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $161,483 |
| Monthly Rent | $837 |
| Price-to-Rent | 16.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.2% |
| Cap Rate | 4.0% |
| 5-Year IRR | 10.6% |
📈 Home Appreciation
| 1-Year | +7.9% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +6.6% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 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 (4.0%). 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 38375
Population: 8,398
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 38375
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
What are rental rates like in Selmer, TN?
Rental rates in Selmer, TN average $837/mo. Tenant demand and $161K home values make the yield look reasonable by investor standards.
What price range are homes in Selmer, TN?
Median home price in Selmer, TN is near $161K, with a 5-year CAGR of 0.0%. Prices have been even-keeled and supportive of buy-and-hold strategies.
Is Selmer in TN worth investing in?
Investors tracking Selmer, TN will find a 3.0/5 rating supported by $161K median home values and $837/mo rents. That profile suits long-term holders targeting measured returns.
What investment strategy works best in Selmer, TN?
In Selmer, TN the resilient play is typically careful cash-flow rentals with hands-on management. The combination of $161K prices and $837/mo rents suits that approach.
Are there empty rentals in Selmer, TN?
Selmer, TN sees elevated vacancy, which is reasonable relative to the broader TN rental market.
You know 38375 now. You don’t know where it ranks.
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