How to BRRRR in Memphis, TN
BRRRR in Memphis is a 10.23% gross yield play — $1,256/mo rent on a $147k median. Whether that cash-flows depends on your debt cost.
DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026
Memphis is a workable BRRRR market — tight but bankable math on disciplined deals.
- → Gross yield 10.23% — above national baseline
- → Rent $1,256/mo vs. national $1,930 — rent-weak
- → DSCR expectation at 75% LTV / 7.5%: 1.20+ comfortable
- → Appreciation risk to refi: meaningful softening, stress comps
Start with the gross math. Memphis's typical home value is $147,306; ZORI (Zillow's rent index) sits at $1,256/mo. That's 10.23% gross annual yield. That's well above the national 4-5% baseline — meaningful cushion for a BRRRR to pencil even at today's debt cost.
Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you should clear DSCR 1.20+ in Memphis with comfortable headroom. Cash-flow at $200-400/door is achievable on a properly underwritten property.
Rent demand color: Memphis rents ($1,256) sit 35% below the national median ($1,930). Local rent is the constraint here — even at favorable acquisition prices, the rent side of the math is the limiting factor.
Refi appraisal risk: Memphis home values are down 3.2% YoY. That's the biggest threat to your refi — if you're underwriting today and refinancing in 8 months, comps may have softened further. Stress-test your refi ARV at -5% of today's median.
The numbers behind the analysis.
Same Memphis data, different lens.
Lead lists, sourcing channels, and disposition strategies tuned to the local market.
ARV math, rehab scope, and exit timing for the local buyer profile.
Buy-and-hold rental analysis tuned to local rents, taxes, and tenant mix.
Subject-to, seller financing, wraps, and lease-options sized for the local market.
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.