Market Analysis
Memphis Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$130,000
Average Monthly Rent
$1,408
Estimated Cap Rate
13.0%
Rent-to-Price Ratio
1.1%
Passes 1% Rule
Rent ÷ price by zip code
1 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 38109 | $89,900 | $1,095 | 1.22% |
| 38118 | $125,000 | $1,215 | 0.97% |
| 38128 | $135,000 | $1,295 | 0.96% |
| 38103 | $339,000 | $2,025 | 0.60% |
Rent ÷ price over time
PacRent rent-to-price index · Memphis
Context · FRED home price index
Market Trends
Memphis metro area — % change since 2018
Home Prices
+71.0%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $881/mo |
| Condo | $1,044/mo |
| Single Family | $1,520/mo |
| Townhouse | $1,580/mo |
| Multi-Family | $1,695/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$130,000
Down Payment (20%)$26,000
Monthly P&I$678
Monthly Rent$1,408
Est. NOI$10,138/yr
Est. Cash Flow$167/mo
Cash on Cash7.0%
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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