Long-Term Rentals · Market playbook

Buying Rental Properties in Memphis, TN

Buying rentals in Memphis is a 10.23% gross yield play at a $147k median entry — $1,256/mo rent gross before expenses. The math has to clear before the property does.

DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026

Workable 75/100

Memphis is a workable straight-rental market — neither bonanza nor minefield.

TL;DR — data signals

→ Gross yield 10.23% — above national baseline
→ Rent $1,256/mo vs. national $1,930 — rent-weak
→ Cash flow expectation at 25% down / 7.5%: $200-400/door positive
→ Appreciation: softening, cash flow must carry the deal

Long-term rentals in Memphis sit at the intersection of two numbers: typical home value $147,306 and median rent $1,256/mo. That's a 10.23% gross yield — well above the national 4-5% baseline. Cash flow does most of the heavy lifting here, with appreciation as a bonus.

Run the cash-flow math. Assume 20-25% down on a 30-year conventional rental loan at 7.5%, plus taxes + insurance + 8% property management + 8% vacancy/maintenance reserve + 8% capex reserve. At those inputs you should clear $200-400/door positive cash flow on a well-bought property in Memphis. The numbers work without heroic assumptions.

Rent demand context: Memphis rents ($1,256) run 35% below the national median ($1,930). Rent is the constraint — operational discipline matters more than acquisition skill here.

Appreciation thesis: Memphis home values are -3.2% YoY. That's a softening market. Cash flow has to do all the work; don't underwrite expecting price growth to bail out a marginal deal.

Net: Memphis is a workable rental market with tight margins — disciplined underwriting and operational excellence are the difference between profit and break-even.

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Memphis at a glance