Real Estate Investing in Memphis, Texas (79245)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 79245 (Memphis, TX)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 24.0% of homes vacant — above national norms.
- Declining values: -0.5% 5-year CAGR — values have moved lower.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Memphis, TX (79245)?
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Market Analysis: 79245 Memphis
The 79245 ZIP in Memphis is not a pristine, turnkey story — it is a value-add map. Stock is older, prices near $77K are approachable, and upside sits in the rehab line.
BRRRR works in 79245 because the math supports it. Buy at $77K, rehab, and the refinance step typically recovers capital in a way that flat-yield markets cannot match.
Statewide, TX value-add investors migrate toward ZIPs with 79245's profile — older stock, soft but real rent growth, and $77K pricing that keeps rehab math workable.
From a cash-flow lens, incomes in 79245 sit below the county median, the tenant pool is deep and the demand for upgraded rental stock consistently outruns supply.
Strategic fit here is operational. Pro forma discipline, capex reserves, and lender relationships matter more than the marketing pitch.
Here's what matters if you're considering buying a home in Memphis:
Market Trends
Home Value History (with trend line)
📊 How Does 79245 Compare?
| Metric | 79245 | Memphis | Texas |
|---|---|---|---|
| Home Value | $77,448 | $77,448 | $297,000 |
| 5-Year CAGR | N/A | N/A | 5.4% |
| Avg Rent | $882 | $882 | - |
| Cap Rate | 8.9% | 8.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 79245 (Memphis, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $77,448 |
| Monthly Rent | $882 |
| Price-to-Rent | 7.3:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 13.7% |
| Cap Rate | 8.9% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +21.8% ▲ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | -0.5% ▼ |
| 10-Year CAGR | +0.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (8.9%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 79245
Population: 2,291
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 79245
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
Does Memphis, TX rent-to-price ratio clear the 1% rule?
The 1% rule is solid territory for Memphis, TX. Rent-to-price at the median is 1.14%, putting many properties within striking distance.
How strong is Memphis, TX for real estate investors?
Yes - Memphis, TX a 4.0/5 investability score. With $77K home prices against $882/mo monthly rent, the market delivers a reasonable entry point for new investors.
Is house hacking profitable in Memphis, TX?
The house hack math an attractive in Memphis, TX. Owner-occupant buyers benefit from the $882/mo rents and $77K home values.
How should investors approach Memphis, TX?
Investors who focus on value-add and BRRRR deals typically do well in Memphis, TX. The numbers - $77K homes against $882/mo rents - support that play.
Can you recycle capital via BRRRR in Memphis, TX?
Memphis, TX is a strong for BRRRR. Acquiring below market, rehabbing, and leasing at $882/mo produces solid refinance appraisals against $77K values.
You know 79245 now. You don’t know where it ranks.
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