Is Memphis, TN Still a Good Market for Rental Property Investors in 2026?

Is Memphis, TN Still a Good Market for Rental Property Investors in 2026?

Realtor · Member since 2023 · 16 posts · 0 votes

I'm interested in hearing from investors who are currently active in the Memphis, Tennessee market.

For those who own rental properties or are actively buying in Memphis, how has your experience been recently?

A few things I'd love to discuss:

  • Which Memphis neighborhoods or ZIP codes are you currently targeting?

  • Are you seeing better opportunities in buy-and-hold rentals or fix-and-flip properties?

  • What rental returns or cap rates are you typically looking for?

  • Are you still finding reasonably priced properties with good cash-flow potential?

  • What challenges should investors be aware of when investing in Memphis?

Our team is also exploring opportunities in the Memphis market, so I'd love to hear real experiences and insights from local investors.

Looking forward to hearing everyone's thoughts!

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 696 votes
1w

Memphis still works if you buy it right, and I say that with 236 properties here. I run BRRRR, not flips: single-family under $100K, rehab it, rent it, refinance it, repeat. My ZIPs are 38109, 38111, 38112, 38114, 38116, 38117, 38118, 38122, and 38128 — I know them street by street and I do not buy outside them. The return I underwrite is simple: the 1% rule all-in, purchase plus rehab against rent. Section 8 pays $1,395 to $1,950 on a 3BR+ here, and my rehab conversions build those bedrooms — 2/1 to 3/1, 3/1 to 4/2. ARV has to land $180K to $265K so the DSCR refi at 70-80% LTV pulls my capital back out. The challenge is not the market. It is deal flow — finding enough houses that clear the numbers.

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  • Specialist · Long Beach, CA · Member since 2011 · 889 posts · 401 votes
    1w

    Hi Queenie. I own a handful of rentals in Memphis. Never have issues keeping them rented. It's been more than 10 years since I started investing there. I only own SFR's and a duplex. No larger apartments. I have a team there that has turnkey and BRRRR properties for sale.

    Stay away from buying in south Memphis. The better areas are east and northeast of downtown in my opinion.

    • Realtor · Member since 2023 · 16 posts · 0 votes
      1w

      Hi Aristotle! Thank you for sharing your experience and insights. It's great to hear that you've had success investing in Memphis for over 10 years.

      I appreciate the advice regarding the different areas, especially your recommendation to focus on East and Northeast Memphis. I'd also be interested in learning more about your local team and the turnkey and BRRRR opportunities they offer.

      We're actively connecting with investors and exploring opportunities in the Memphis market as well. It would be great to stay in touch and hopefully find ways to work together!

  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 696 votes
    1w

    Memphis still works if you buy it right, and I say that with 236 properties here. I run BRRRR, not flips: single-family under $100K, rehab it, rent it, refinance it, repeat. My ZIPs are 38109, 38111, 38112, 38114, 38116, 38117, 38118, 38122, and 38128 — I know them street by street and I do not buy outside them. The return I underwrite is simple: the 1% rule all-in, purchase plus rehab against rent. Section 8 pays $1,395 to $1,950 on a 3BR+ here, and my rehab conversions build those bedrooms — 2/1 to 3/1, 3/1 to 4/2. ARV has to land $180K to $265K so the DSCR refi at 70-80% LTV pulls my capital back out. The challenge is not the market. It is deal flow — finding enough houses that clear the numbers.

    • Realtor · Member since 2023 · 16 posts · 0 votes
      1w

      Thanks for sharing your insights! With 236 properties in your portfolio, you clearly know the Memphis market well. We appreciate you laying out your buying criteria and investment strategy. We'd love to connect and see how we can help with your deal flow by sharing potential opportunities that align with your preferred ZIP codes, price range, and investment requirements. Looking forward to building a professional relationship and hopefully working together on future deals!

  • Realtor · Memphis, Shelby County · Member since 2026 · 317 posts · 114 votes
    1w

    Queenie, great questions — and since I'm a Realtor here in Memphis, I'll share what I'm seeing from the transaction side.

    The buy-and-hold market here is still active because our price points let investors clear cash flow at rents the local market actually supports. Where I see buyers succeed is being picky about condition and knowing their exit: the numbers work when you buy right and budget honestly for repairs, not when you stretch on price hoping rents catch up.

    On challenges: taxes and insurance are the two line items I watch clients underestimate most, and older housing stock means a thorough inspection is non-negotiable. A knowledgeable local agent who understands investor math — not just retail comps — makes a real difference here. Happy to share more if it helps your team.

    • Realtor · Member since 2023 · 16 posts · 0 votes
      1w

      Thank you for sharing your perspective! It's great to hear insights from someone directly involved in Memphis real estate transactions. We appreciate your advice, especially regarding taxes, insurance, property condition, and the importance of accurate repair budgets.

      We'd love to connect and learn more about your experience in the Memphis market. We're also interested in building relationships with local professionals who understand investor needs. Hopefully, we can stay in touch and explore opportunities to work together in the future!

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