Memphis Deep Dive

The cash flow king of Tennessee. Lower prices, higher cap rates, and strong rental demand make Memphis ideal for landlord buyers.

Median Price

$180K

Avg Rent

$1,350

Cap Rate

8-10%

Buyer Type

Landlord

Why Memphis for Investors

Cash Flow King

Entry prices under $150K with rents at $1,200-1,400/mo. Many properties pass 1% rule easily.

Strong Rental Demand

Large renter population, major employers (FedEx HQ), steady job market.

No State Income Tax

Tennessee has no income tax, making rental income more profitable.

Out-of-State Investor Hub

CA and NY investors love Memphis for cash flow. Built-in buyer demand.

Best Memphis Areas

Cordova / Germantown

Best schools, lowest crime. Higher prices ($250K+) but premium rents and appreciation.

Buyer type: Mix of flippers and landlords

Bartlett

Family-friendly suburb, good schools. $180-220K range with $1,400+ rents.

Buyer type: Landlords seeking stable tenants

Hickory Hill / Southeast

Affordable entry ($80-120K), high cash flow. More management intensive.

Buyer type: Experienced landlords, Section 8

Whitehaven

Near airport, affordable ($100-150K). Good cash flow but higher turnover.

Buyer type: Cash flow investors

Memphis Watch-Outs

Crime varies dramatically: Check crime maps block by block, not just ZIP codes
Property management critical: Many out-of-state investors struggle without good PM
Slower appreciation: Don't buy for appreciation - buy for cash flow
Flood zones: Some areas prone to flooding - check FEMA maps

Typical Memphis Landlord Deal

Purchase Price:$130,000

Monthly Rent:$1,250

GRM:8.7

Cap Rate:~9%

With $25K rehab, all-in at $155K → $1,250 rent = 0.8% rule (close enough for Memphis market)

Key Takeaway

Memphis is a landlord market. Lead with rental numbers, cap rates, and cash flow. Your buyers are looking for yield, not appreciation. Price properties to hit 8%+ cap rates and you'll have buyers lined up.

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