Real Estate Investing in Spencer, Tennessee (38585)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38585 (Spencer, TN)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.1% 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 Spencer, TN (38585)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 38585 Spencer
ZIP 38585 inside Van Buren County looks affordable on the surface — median value of $206K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed markets are won on execution, not on spreadsheets. ZIP 38585 shows the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
In the broader TN picture, 38585 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Demographically, 38585 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.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Spencer:
Market Trends
Home Value History (with trend line)
📊 How Does 38585 Compare?
| Metric | 38585 | Spencer | Tennessee |
|---|---|---|---|
| Home Value | $206,112 | $206,112 | $327,001 |
| 5-Year CAGR | 5.2% | 5.2% | 7.7% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 3.3% | 3.3% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38585 (Spencer, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $206,112 |
| Monthly Rent | $873 |
| Price-to-Rent | 19.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 8.5% |
📈 Home Appreciation
| 1-Year | +1.2% ▲ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +6.8% ▲ |
🏠 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 (3.3%). 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 38585
Population: 4,550
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 38585
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 Spencer, TN suited for a house hack?
The a challenging house-hack environment in Spencer, TN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How strong is the working-renter base in Spencer, TN?
The renter base in Spencer, TN is reasonable for the $873/mo price point. Screening well and pricing to market typically yields reliable tenants.
How much do tenants pay in Spencer, TN?
Rent in Spencer, TN is around $873/mo. The resulting rent-to-value relationship with $206K pricing is reasonable for most investor models.
How landlord-friendly is Spencer, TN?
Landlord-friendliness in Spencer, TN is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How much should I expect to pay for a home in Spencer, TN?
Expect median prices around $206K in Spencer, TN. The market has run at a 0.0% 5-year CAGR, so entry costs have been predictable.
You know 38585 now. You don’t know where it ranks.
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