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Rental Investing in Memphis, TN

2026 Market Data & Investment Analysis

Gross Yield

7.3%

Annual rent / price

Median Home Price

$180,000

As of 2026-Q1

Median Monthly Rent

$1,100

Per month

Population

633,104

-0.2% / yr (5y avg)

Calculate Your Return in Memphis

Pre-filled with Memphis's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

7.33%

Net Rental Yield

4.63%

Cap Rate

4.63%

Monthly Cash Flow

$695.00

Annual Cash Flow

$8,340.00

> 6% — Excellent4–6% — Good< 4% — Low

Market Overview

Median Home Price — 5-Year Trend

2021
$155,000
2022
$195,000
2023
$185,000
2024
$182,000
2025
$180,000

Median Monthly Rent — 5-Year Trend

2021
$940
2022
$1,065
2023
$1,095
2024
$1,098
2025
$1,100

Memphis offers significantly above-average rental yields of 7.3%, making it an attractive market for income-focused investors.

Declining population of 0.2% per year may pose risks to long-term rental demand. Investors should focus on established neighborhoods with stable tenant bases.

The vacancy rate of 9.8% is above average, which could impact cash flow consistency. Thorough tenant screening and competitive pricing are important in this market.

Investment Profile

Cash Flow Market

Memphis is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.

✓ Strengths

  • •High gross yield of 7.3% supports strong monthly cash flow
  • •Lower entry prices relative to rents reduce upfront capital needed
  • •Income-driven returns are less dependent on market timing

! Risks

  • •Limited price appreciation potential reduces total return
  • •Declining population may increase vacancy risk over time

Key Metrics

Gross Yield7.3%
Median Home Price$180,000
Median Monthly Rent$1,100
Population Growth-0.2% / yr
Vacancy Rate9.8%

How Memphis Compares

Memphis vs Nashville: 2.3 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Nashville, TN$420,000$1,7505%+1.3%
Birmingham, AL$170,000$1,0507.4%-0.6%
Atlanta, GA$350,000$1,7506%+1.6%
St. Louis, MO$175,000$1,1007.5%-0.8%
Louisville, KY$210,000$1,2006.9%+0.3%

Frequently Asked Questions

Is rental investing profitable in Memphis?▾
Yes, Memphis offers a gross rental yield of 7.3%, which is above the national average of around 5–6%. With a median home price of $180,000 and median monthly rent of $1,100, the numbers support profitable rental investing — though your specific results depend on financing terms, expenses, and property management.
What is the average rental yield in Memphis?▾
The average gross rental yield in Memphis is approximately 7.3%, based on a median home price of $180,000 and median monthly rent of $1,100 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Memphis compare to Nashville for investors?▾
Memphis has a gross yield of 7.3% compared to 5% in Nashville, a difference of 2.3 percentage points. Memphis offers higher current income potential, making it more attractive for cash flow-focused investors.

Ready to Analyse a Specific Property in Memphis?

Use our free rental yield calculator to model any property — not just the median.

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Compare with nearby cities:

Nashville, TNBirmingham, ALAtlanta, GASt. Louis, MO

Data source: Zillow Research / U.S. Census Bureau. Last updated: 2026-Q1. This information is for educational purposes only and does not constitute investment advice.