Real Estate Investing in Mercer, Tennessee (38392)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38392 (Mercer, TN)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 14.8% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Mercer, TN (38392)?
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Market Analysis: 38392 Mercer
The 38392 ZIP in Mercer, TN is a local-operator market. Outside capital chasing a $197K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 38392 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
ZIP 38392's metrics run below Madison County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Demographically, 38392 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.
Strategy in 38392 is an operator game, not a passive one. In practical terms, entry prices of $197K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Mercer:
Market Trends
Home Value History (with trend line)
📊 How Does 38392 Compare?
| Metric | 38392 | Mercer | Jackson, TN | Tennessee |
|---|---|---|---|---|
| Home Value | $197,408 | $197,408 | N/A | $327,001 |
| 5-Year CAGR | N/A | N/A | N/A | 7.7% |
| Avg Rent | $954 | $954 | N/A | - |
| Cap Rate | 3.8% | 3.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38392 (Mercer, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $197,408 |
| Monthly Rent | $954 |
| Price-to-Rent | 17.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | 6.3% |
📈 Home Appreciation
| 1-Year | +9.4% ▲ |
| 3-Year CAGR | +2.6% ▲ |
| 5-Year CAGR | N/A |
| 10-Year CAGR | N/A |
🏠 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 (3.8%). 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 38392
Population: 736
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 2,427 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is rental property easy to operate in Mercer, TN?
Landlord-friendliness in Mercer, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How qualified is the tenant pool in Mercer, TN?
The tenant pool in Mercer, TN is solid, supported by local employment and population fundamentals. Rents of $954/mo are well-absorbed by the market.
Are homes affordable in Mercer, TN?
Mercer, TN median home values land near $197K. That is reasonable territory for investors looking at $954/mo-per-month rentals.
Does house hacking work in Mercer, TN?
House hacking works a challenging in Mercer, TN. Rents of $954/mo against $197K acquisition make the strategy solid for owner-occupants.
How much do tenants pay in Mercer, TN?
Expect rents around $954/mo per month in Mercer, TN. With home values at $197K, the yield math works out to reasonable levels for rental investors.
You know 38392 now. You don’t know where it ranks.
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How 38392 ranks in Jackson, TN
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