Nashville vs Memphis — which is better for rental property?
Side-by-side comparison for property investors (2026)
How these markets compare for investors
Memphis is significantly more affordable than Nashville, with median prices 133% lower ($180,000 vs. $420,000). That lower entry point means less capital tied up per unit, making it easier to scale a portfolio or get started as a first-time investor.
On yield, Memphis stands out clearly at 7.3% vs. 5.0% in Nashville. For cash flow focused investors, that difference is material — it translates to measurably higher monthly income on a comparable investment.
On population growth, Nashville (1.3%/yr) is significantly ahead of Memphis (-0.2%/yr). Strong population growth drives sustained rental demand, supports rent increases, and underpins long-term price appreciation.
Vacancy rates differ between the markets: Nashville has a tighter market at 5.2% 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
$420,000
Median monthly rent
$1,750/mo
Gross rental yield
5%
Nashville offers stable rental demand without extremes — a solid market for conservative, long-term buy-and-hold investors.
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.
Property prices by size
Nashville
Memphis✓
Nashville
Memphis✓
Nashville
Memphis✓
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 (+23.5% in Nashville, +16.1% in Memphis 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
The same capital generates approximately 36% more annual rental income in Memphis — a meaningful difference for cash flow focused investors.
Which investor type benefits most?
First-time & risk-averse
Recommended: Memphis
Memphis has a lower entry price ($180,000 vs. $420,000) — less capital at risk and a lower barrier to get started.
Cash flow investor
Recommended: Memphis
Memphis offers a higher gross yield (7.3% vs. 5%) — directly translating to more monthly income for the same investment.
Appreciation investor
Recommended: Nashville
Nashville is growing faster at 1.3%/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. ~3 in Nashville. Your capital stretches further in Memphis.
Calculate your return in each city
Adjust the numbers to match your specific properties.
ANashville
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
5.00%
Net yield
3.17%
Cap rate
3.17%
Monthly cash flow
$1,109.00
Annual cash flow
$13,308.00
BMemphis
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
Common questions: Nashville vs Memphis
Is Nashville or Memphis better for property investment?
Memphis offers a higher gross yield (7.3% vs. 5% in Nashville), 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 — Nashville or Memphis?
Memphis has a higher gross rental yield at 7.3% versus 5% in Nashville. Note that net yield will vary depending on operating expenses, vacancy periods, and applicable taxes in each market.
Should I invest in Nashville or Memphis as a beginner?
For beginners, Memphis tends to be more accessible with a median price of $180,000 compared to $420,000 in Nashville. 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 Nashville versus Memphis?
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 / Zillow Research / U.S. Census Bureau