Market Analysis
Memphis, Tennessee
Rental investment market data and analysis · Updated July 2026
Median Home Price
$134,950
Average Monthly Rent
$1,401
Estimated Cap Rate
12.5%
Rent-to-Price Ratio
1.0%
Passes 1% Rule
Market Trends
Memphis metro area — % change since 2018
Home Prices
+68.2%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $877/mo |
| Condo | $1,049/mo |
| Multi-Family | $1,077/mo |
| Townhouse | $1,405/mo |
| Single Family | $1,544/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$134,950
Down Payment (20%)$26,990
Monthly P&I$704
Monthly Rent$1,401
Est. NOI$10,087/yr
Est. Cash Flow$137/mo
Cash on Cash5.5%
Positive cash flow at median prices — Memphis offers strong fundamentals for buy-and-hold investors.
What Investors Should Know About Memphis
- 1Strong cap rates above 7% — excellent cash flow potential
- 2Market passes the 1% Rule — strong rent-to-price ratio for cash flow investors
- 3Below-average rents keep entry costs low for new investors
- 4Affordable market — lower barrier to entry for first-time investors
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