If you’re thinking about diving into Memphis real estate, Memphis might be your next best move. With affordable home prices, steady appreciation, and strong rental demand, it’s a market that checks all the right boxes—whether you’re a seasoned investor or just starting.
1. You Can Still Afford to Get In
Unlike many U.S. cities where home prices have soared out of reach, Memphis remains accessible. You can break into the market with less upfront capital and lower risk, while still benefiting from long-term appreciation.
Let’s break down how Memphis stacks up:
| City | Median Home Price | Median Rent | Price-to-Rent Ratio |
| Memphis, TN | $226,300 | $1,458/mo | 12.9× |
| Cleveland, OH | $187,400 | $1,416/mo | 11.0× |
| Chicago, IL | $303,065 | $2,090/mo | 12.1× |
The takeaway? Memphis hits a sweet spot: affordable entry points with strong rental income potential.
2. Prices Are Rising—But Still Reasonable
Home prices in Memphis are on the rise, but they’re not skyrocketing like in other cities. As of July 2024, the median listing price is $225,700—up 3.3% since January. Homes are also selling faster, now averaging just 45 days on the market.
That kind of momentum signals growing demand and investor confidence.
3. Reliable Rental Income
Memphis has a diverse rental population—students, healthcare workers, logistics professionals, and families—all looking for housing. Even though average rent dipped slightly to $1,073/month due to increased supply, demand remains strong.
Here’s what the rental market looks like:
- Average Rent: $1,073/month
- Vacancy Rate: 10.5%
- Year-over-Year Rent Change: –5.4% (0–2 BR units)
- Monthly Rent vs. Mortgage Advantage: Renting costs about $246 less per month
The short-term dip in rent? Mostly a reflection of increased inventory, not a sign of weakening demand.
4. Where to Look: Top Memphis Neighborhoods
Each part of Memphis offers something different, depending on your goals:
- East Memphis & Midtown – Great for smaller rentals or multifamily properties, especially near hospitals and universities.
- Cordova & Germantown – Family-friendly, good schools, and ideal for long-term tenants.
- Downtown & South Main – A trendy, fast-evolving area with strong appeal for young professionals.
Whether you’re after cash flow or appreciation, there’s a neighborhood that fits your strategy.
5. A Steady Economy Means Steady Tenants
Memphis isn’t just known for blues and BBQ. It’s a hub for logistics and healthcare, home to major employers like:
- FedEx (global headquarters)
- St. Jude Children’s Research Hospital
- University of Memphis and Baptist Health
A strong local economy supports job growth and keeps rental demand consistent.
Memphis Real Estate Snapshot – July 2024
| Metric | Value |
| Median Home Price | $225,700 (+3.3% YTD) |
| Median Sold Price | $169,000 (+0.9% YTD) |
| Average Rent | $1,073/month |
| Days on Market | 45 (↓ 26% from Jan) |
| Price per Sq. Ft. | $107 |
| Rental Vacancy Rate | 10.5% |
| Homeowner Vacancy Rate | 1.9% |
| Annual Appreciation | –1.6% |
(Sources: Evernest, Realtor.com, BiggerPockets)
Getting Started: Your Memphis Investment Checklist
Clarify Your Goals
Are you chasing cash flow or building long-term equity? Your strategy starts here.
Run the Numbers
A good rule of thumb: aim for a 1% rent-to-value ratio. For example, buy at $150K, rent for $1,500/month.
Build a Local Team
Find a local agent, property manager, and contractor who knows the Memphis market inside and out.
Explore Financing Options
Consider DSCR or portfolio loans, or even FHA loans if you’re house-hacking. Look for lenders familiar with this region.
Budget for Repairs & Vacancies
Even newer or turnkey homes need upkeep. Plan for maintenance and tenant turnover.
Final Thoughts
Memphis is one of those rare real estate markets where affordability, rental demand, and growth intersect. Whether you’re flipping, renting long-term, or house-hacking, it offers the kind of flexibility and opportunity that smart investors are looking for in 2025.
Ready to Get Started?
At SpencerBuyshouses.com, we help investors, local and out-of-state, find high-potential opportunities in the Memphis market. From locating the right deals to managing your investment, we’re here to help every step of the way.
👉 Reach out today and let’s start building your real estate portfolio in Memphis.
Spencer Shadrach is the founder of Spencer Buys Houses, a trusted home-buying company based in Memphis, TN. With over a decade of experience in real estate, Spencer is passionate about helping local homeowners sell their properties quickly and stress-free—no agents, no fees, and no repairs needed. Known for his honest approach and fair cash offers, Spencer has earned a reputation as one of the most reliable house buyers in Memphis. When he’s not guiding sellers through smooth closings, you’ll find him giving back to the Memphis community or spending time with his family.