Before you read the numbers: these estimates assume every home is rent-ready. ApriFind doesn't have condition data yet, so repairs needed to reach these rents are not included, and the cheapest homes are the most likely to need them. Property tax uses Memphis's published property tax rate (1.32% of market value). See What these numbers assume.
Memphis is a single-family rental market: more than four in five listings are detached houses. Tennessee taxes rental houses at the residential rate, which helps the math. In our ranking of the 50 largest US metros, it had the fourth-highest share of listings with positive cash flow. We ran every active for-sale listing in the city through ApriFind on October 9, 2026 and analyzed 2,678 properties, each with a rent estimate built from nearby comparable rentals.
Key takeaways
- 33% of listings show positive cash flow with 20% down at a 7% mortgage rate. The median listing is negative (−$231 per month), with a 4.9% median cap rate.
- South Memphis, Whitehaven, and Frayser lead: in 38106, 38109, 38118, 38127, and 38115, 55–80% of listings cash-flow on paper, at median prices of $89,900–$145,000.
- Small multi-family is the standout property type: 54% of 2–4 unit buildings cash-flow under our standard assumptions, with a 7.0% median cap rate. They're also the most sensitive to costs those assumptions may understate: with heavier costs, 20% do.
- Price is the dividing line. 93% of listings under $100,000 cash-flow on paper, against 4% at $200,000–$300,000. Those cheapest homes are also the most likely to need significant repairs.
- Cash flow comes with location risk. 89% of cash-flowing listings are in neighborhoods with an Apri Score of 6–10 (10 = weakest). In 1–3 areas, only 3% of listings cash-flow.
Returns by ZIP code
ZIP codes with at least 40 analyzed listings, ranked by the share with positive cash flow.
| ZIP | Listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 38106 | 129 | $89,900 | $1,098 | 9.3% | $241 | 80% |
| 38109 | 184 | $99,900 | $1,098 | 8.1% | $144 | 77% |
| 38118 | 101 | $129,900 | $1,395 | 7.8% | $139 | 72% |
| 38127 | 232 | $100,000 | $1,038 | 7.5% | $94 | 66% |
| 38115 | 49 | $145,000 | $1,498 | 7.1% | $73 | 55% |
| 38114 | 92 | $125,000 | $1,235 | 6.7% | $29 | 53% |
| 38108 | 106 | $129,450 | $1,098 | 6.3% | −$7 | 48% |
| 38107 | 105 | $180,000 | $1,495 | 5.9% | −$72 | 45% |
| 38128 | 140 | $146,500 | $1,288 | 6.1% | −$47 | 44% |
| 38116 | 66 | $158,750 | $1,355 | 5.9% | −$71 | 41% |
| 38111 | 199 | $187,500 | $1,432 | 4.9% | −$251 | 35% |
| 38112 | 82 | $239,950 | $1,559 | 3.6% | −$585 | 17% |
| 38122 | 157 | $164,900 | $1,145 | 4.3% | −$300 | 15% |
| 38104 | 171 | $299,000 | $1,902 | 3.1% | −$723 | 8% |
| 38119 | 81 | $299,900 | $1,738 | 3.2% | −$756 | 5% |
| 38117 | 198 | $286,950 | $1,462 | 2.7% | −$842 | 4% |
| 38016 | 84 | $307,950 | $2,173 | 4.2% | −$573 | 2% |
| 38018 | 61 | $325,000 | $2,234 | 4.0% | −$643 | 0% |
| 38120 | 84 | $449,000 | $1,817 | 1.8% | −$1,823 | 0% |
| 38125 | 61 | $320,000 | $2,062 | 4.0% | −$592 | 0% |
| 38103 | 168 | $339,000 | $2,018 | 1.8% | −$1,129 | 0% |
Midtown and East Memphis (38104, 38111, 38117) and downtown (38103) cost about twice as much as the leading ZIPs and rarely cash-flow at current prices.
Returns by property type and price
| Property type | Listings | Median price | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|---|
| Single family | 2,222 | $174,950 | $1,392 | 5.1% | 35% |
| Condo | 219 | $193,000 | $1,350 | 1.5% | 8% |
| Multi-family (whole building) | 138 | $230,000 | $2,036 | 7.0% | 54% |
| Townhouse | 99 | $199,500 | $1,361 | 3.7% | 23% |
| Price range | Listings | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|
| Under $100,000 | 500 | $1,048 | 9.8% | 93% |
| $100,000–$200,000 | 995 | $1,264 | 5.9% | 40% |
| $200,000–$300,000 | 516 | $1,574 | 4.0% | 4% |
| $300,000 and up | 667 | $2,000 | 2.2% | 2% |
How to sense-check multi-family. A typical Memphis multi-family listing was built around 1950, with 4 bedrooms in total, listed at about $230,000. Its estimated rent, about $2,040 a month for the building, compares with a $895 median asking rent for a two-bedroom apartment in Memphis. The cost side is less certain. Our standard assumptions don't include owner-paid utilities, and in older small multi-family buildings the owner often pays water and sewer. Older buildings also tend to cost more to insure and maintain. With $150 a month of owner-paid utilities, insurance at 1% of the price instead of 0.5%, 10% vacancy, and 15% maintenance, the share of multi-family listings that cash-flow falls from 54% to 20%.
Returns by Apri Score (neighborhood rating)
The Apri Score is ApriFind's proprietary 1-to-10 neighborhood rating, built from census-level socioeconomic data including income, education, employment, and housing quality. It compares each neighborhood with others in the same state: 1 is among the strongest, 10 among the weakest. ApriFind shows it on every listing and as a map layer. It's built to show, before you make an offer, whether a high return comes with a weaker location. See the Apri Score for every listing in any city.
| Apri Score | Share of listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 1–3 (strongest) | 38% | $335,450 | $1,775 | 2.7% | −$911 | 3% |
| 4–7 | 24% | $186,500 | $1,436 | 4.9% | −$221 | 28% |
| 8–10 (weakest) | 38% | $129,900 | $1,221 | 6.8% | $45 | 55% |
Based on the 2,257 listings with an Apri Score.
Most of Memphis's cash flow is in its weakest neighborhoods. 38% of listings are in Apri Score 8–10 areas, and 55% of those cash-flow on paper, against 3% in 1–3 areas. Of all the listings that cash-flow, 11% are in areas scoring 1–5.
That's the trade-off a high cap rate can hide. Weaker areas can mean more tenant turnover, longer vacancies, more collection problems, older housing, and slower appreciation, while these figures assume the same 5% vacancy everywhere. If you want cash flow without buying in the weakest areas, the middle band is where to look: 151 listings in Apri Score 4–7 areas showed positive cash flow.
Memphis asking rents by bedrooms
Median asking rent for single-family and townhouse rentals on the market:
| Bedrooms | Median asking rent | Rentals |
|---|---|---|
| 1 | $895 | 45 |
| 2 | $995 | 164 |
| 3 | $1,300 | 549 |
| 4 | $1,650 | 178 |
| 5+ | $1,972 | 22 |
What these numbers assume
1. Every home is rent-ready. Rent estimates come from comparable rentals currently on the market, which are homes in rentable condition. ApriFind doesn't have condition data yet. A home that needs a roof, a furnace, or a full renovation won't earn these rents until the work is done, and the cost of that work is not included in these returns. This matters most for the cheapest listings: the 93% cash-flow rate under $100,000 describes those homes after they're rent-ready. Budget for an inspection and repairs before relying on any of these numbers.
2. Property tax uses Memphis's published rates. The Shelby County Trustee lists 2026 rates of $2.58081 per $100 of assessed value for the City of Memphis (source) and $2.702382 for Shelby County (source), $5.28 in total. Tennessee assesses residential property, including a rented house, at 25% of appraised value, so a single-family rental pays about 1.32% of market value a year. Buildings with more than one rental unit are assessed as commercial property, at 40%, or about 2.11%; at that rate, 45% of multi-family listings would cash-flow instead of 54%. Your parcel's actual bill can differ. If taxes were half a point higher, 29% of listings would still cash-flow; a full point higher, 25%.
3. Rent estimates are estimates. Rent estimates are based on asking rents from comparable rental listings nearby, which can run above what tenants ultimately sign for. Check them against local leasing evidence before relying on them.
4. Financing and expenses. 20% down, 7.0% 30-year fixed mortgage, 5% vacancy, 10% property management, 10% maintenance reserve, insurance, and HOA dues where listed.
5. Some listings are excluded. We left out 114 listings priced far below comparable homes nearby, or whose estimated rent was far above what similar listings nearby earn (often shells, auction starting bids, or restricted units), along with vacant land. This "Verify condition" flag is a rough filter: it can't detect a property's actual condition, so homes needing major work remain in these figures.
Methodology
All active for-sale listings with a Memphis, TN address on October 9, 2026, analyzed with ApriFind. Each property's rent comes from ApriFind's proprietary rent model, which considers comparable rentals nearby and how closely they match on factors including location, property type, size, bedrooms, bathrooms, and age. Multi-family rent is the estimated rent for the whole building. Cap rate is net operating income divided by price; cash flow is rent minus all costs including the mortgage.
Listings change daily. Search Memphis on ApriFind to see today's listings with your own down payment, rate, tax rate, and expense assumptions.
FAQ
Is Memphis a good place to buy a rental property in 2026? In our October 2026 analysis, 33% of active Memphis listings showed positive cash flow at 20% down and 7% interest, the fourth-highest share among the main cities of the 50 largest US metros. Those numbers assume rent-ready homes, and many of the cheapest listings need repairs, so inspection and renovation costs decide whether a specific property works.
What is the property tax rate on a Memphis rental property? About 1.32% of market value a year for a rented house inside the city: the 2026 City of Memphis and Shelby County rates total $5.28 per $100 of assessed value, and Tennessee assesses residential property at 25%. Buildings with more than one rental unit are assessed at 40%, so they pay about 2.11%.
What is the average cap rate in Memphis? The median cap rate across 2,678 active listings was 4.9%, from about 9.3% in 38106 to 1.8% in 38120.
Are Memphis's cash-flowing rentals in weaker neighborhoods? Mostly, yes. In our October 2026 data, 89% of listings with positive cash flow were in areas with an Apri Score of 6–10, ApriFind's 1-to-10 neighborhood rating where 10 is weakest. In Apri Score 1–3 areas, 3% of listings cash-flowed, at a median cap rate of 2.7%.
Which Memphis ZIP codes have the best rental returns? 38106, 38109, and 38118 had the highest share of listings with positive cash flow (72–80%), with median prices between $89,900 and $129,900.
ApriFind provides informational tools only and does not provide investment, financial, legal, or tax advice. Figures are estimates from listing data on one date; actual results vary.