Memphis vs Louisville — which is better for rental property?
Side-by-side comparison for property investors (2026)
How these markets compare for investors
Memphis offers a lower entry price than Louisville ($180,000 vs. $210,000), making it more accessible for investors with limited starting capital.
Yields are comparable between the two cities (7.3% vs. 6.9%). The investment decision rests more on price appreciation potential, vacancy risk, and your personal strategy than on headline yield.
Worth noting: Memphis has negative population growth at -0.2% per year, which points to a shrinking renter pool. Louisville at 0.3% growth provides a more stable demand base.
Vacancy rates differ between the markets: Louisville has a tighter market at 6.7% versus Memphis at 9.8%. Lower vacancy generally means fewer void periods and can signal stronger structural demand — important for investors who need consistent rental income.
Market profiles
Median home price
$180,000
Median monthly rent
$1,100/mo
Gross rental yield
7.3%
Memphis stands out for its rental yield. Ideal for investors prioritising ongoing cash flow over capital growth.
Median home price
$210,000
Median monthly rent
$1,200/mo
Gross rental yield
6.9%
Louisville stands out for its rental yield. Ideal for investors prioritising ongoing cash flow over capital growth.
Property prices by size
Memphis✓
Louisville
Memphis✓
Louisville
Memphis✓
Louisville
Estimated values based on median price per m² and median rent per m². Individual properties will vary.
Price and rent trends (5 years)
Price growth is similar across both cities (+16.1% in Memphis, +15.4% in Louisville over 5 years). Rent growth trends may be a better forward indicator for yield trajectory.
What does your capital actually generate?
Investment budget: $300,000
Both cities deliver similar rental income for the same investment amount. Other factors — appreciation potential, market stability, and local expenses — become more decisive.
Risk analysis
Which investor type benefits most?
First-time & risk-averse
Recommended: Memphis
Memphis has a lower entry price ($180,000 vs. $210,000) — less capital at risk and a lower barrier to get started.
Cash flow investor
Recommended: Equal
Yields are nearly identical (7.3% vs. 6.9%). Operating expenses and vacancy will drive actual cash flow more than the headline market yield.
Appreciation investor
Recommended: Louisville
Louisville is growing faster at 0.3%/yr vs. -0.2% in Memphis. Strong population growth is the most reliable driver of long-term price appreciation.
Portfolio builder
Recommended: Memphis
With $1,500,000, you could acquire ~8 properties in Memphis vs. ~7 in Louisville. Your capital stretches further in Memphis.
Calculate your return in each city
Adjust the numbers to match your specific properties.
AMemphis
Inputs
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross yield
7.33%
Net yield
4.28%
Cap rate
4.28%
Monthly cash flow
$642.20
Annual cash flow
$7,706.40
BLouisville
Inputs
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross yield
6.86%
Net yield
4.25%
Cap rate
4.25%
Monthly cash flow
$744.60
Annual cash flow
$8,935.20
Common questions: Memphis vs Louisville
Is Memphis or Louisville better for property investment?
Memphis offers a higher gross yield (7.3% vs. 6.9% in Louisville), making it more attractive for cash flow focused investors. For appreciation-focused strategies, population growth and price trends matter more than headline yield.
Which has higher rental yields — Memphis or Louisville?
Memphis has a higher gross rental yield at 7.3% versus 6.9% in Louisville. Note that net yield will vary depending on operating expenses, vacancy periods, and applicable taxes in each market.
Should I invest in Memphis or Louisville as a beginner?
For beginners, Memphis tends to be more accessible with a median price of $180,000 compared to $210,000 in Louisville. A lower entry price reduces initial capital requirements and limits downside risk while you learn the market.
What are the main risks of investing in Memphis versus Louisville?
Both markets carry specific risks. In Memphis, investors should pay particular attention to population decline and its impact on rental demand. In general, diversification, local due diligence, and maintaining a financial buffer for void periods and repairs are essential in any market.
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Data sources: All data sourced from official statistics bureaus and is provided for informational purposes only. Nothing on this page constitutes investment advice. Always consult a qualified professional before making investment decisions. Zillow Research / U.S. Census Bureau