BRRRR · Market Playbook
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.
Memphis at a glance
The numbers above pull from the full Memphis market report.
- Median value
- $147k
- YoY
- -3.2%
- Median rent
- $1,256
- Gross yield
- 10.23%
Other strategies for Memphis
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.