Real Estate Investing in Drummonds, Tennessee (38023)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38023 (Drummonds, 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.
- Elevated vacancy: 8.1% 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 Drummonds, TN (38023)?
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Market Analysis: 38023 Drummonds
The 38023 ZIP in Drummonds, TN is a local-operator market. Outside capital chasing a $276K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $276K asset, 38023 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Drummonds have seen price recovery that 38023 has not matched. Tipton County data supports the view that the spread is structural rather than temporary.
Employment concentration in 38023 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 38023 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 Drummonds:
Property Strategy for 38023
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $271,944 | $1,720 | 4.6% | +9.5% | $90,648 |
| 4BR | $352,321 | $2,000 | 4.1% | +8.4% | $88,080 |
Market Trends
Home Value History (with trend line)
📊 How Does 38023 Compare?
| Metric | 38023 | Drummonds | Memphis, TN-MS-AR | Tennessee |
|---|---|---|---|---|
| Home Value | $275,711 | $275,711 | N/A | $327,001 |
| 5-Year CAGR | 6.2% | 6.2% | N/A | 7.7% |
| Avg Rent | $1,170 | $1,170 | N/A | - |
| Cap Rate | 3.3% | 3.3% | - | - |
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 38023 (Drummonds, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $275,711 |
| Monthly Rent | $1,170 |
| Price-to-Rent | 19.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 9.6% |
📈 Home Appreciation
| 1-Year | +6.2% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +6.2% ▲ |
| 10-Year CAGR | +7.5% ▲ |
🏠 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 (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 38023
Population: 5,343
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 38023
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
What is the typical rental rate in Drummonds, TN?
Investors in Drummonds, TN typically see rents near $1,170/mo per month against $276K home values - a solid setup for rental cash flow.
What does house hacking look like in Drummonds, TN?
The a challenging house-hack environment in Drummonds, TN reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Is Drummonds, TN a smart market for rental property?
The 3.0/5 investability rating in Drummonds, TN reflects its $276K prices and $1,170/mo rents. Investors generally consider it a solid option within TN.
Is housing expensive in Drummonds, TN?
Drummonds, TN home values average about $276K. That price point suits investors targeting rentals with $1,170/mo in monthly income.
Which real estate strategy fits Drummonds, TN?
The best-fit strategy in Drummonds, TN is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
You know 38023 now. You don’t know where it ranks.
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How 38023 ranks in Memphis, TN-MS-AR
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