Appreciation Investing in Memphis, TN
Data-driven appreciation analysis for Memphis, TN — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Appreciation
Pop. Growth
-1.5%
Moderate
Median Income
$62,337
Household income
Vacancy Rate
10.6%
Moderate supply
Population
922K
Metro demand indicator
Appreciation Investment Thesis
Memphis is a proven turnkey rental market with strong property management infrastructure. The logistics hub economy (FedEx HQ) provides stable blue-collar employment supporting rental demand.
How Memphis Compares
| Rank | City | Appreciation Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #41 | Philadelphia, PA | 2.9 | 5.6% | $240,000 |
| #42 | Cleveland, OH | 2.4 | 9.8% | $105,000 |
| #43 | Dayton, OH | 2.4 | 8.8% | $95,000 |
| #44 | Memphis, TN | 2.2 | 9.2% | $130,000 |
| #45 | Detroit, MI | 1.9 | 11.2% | $85,000 |
| #46 | Birmingham, AL | 1.9 | 8.5% | $125,000 |
| #47 | Little Rock, AR | 1.9 | 8.3% | $150,000 |
Showing markets ranked near Memphis for this strategy.
Quick Math: Estimated Annual Return
Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.
Frequently Asked Questions
What is the appreciation score for Memphis, TN?
Memphis, TN scores 2.2 out of 10 on our appreciation score, ranking #44 out of 52 markets we track. Weighted composite: population growth (40%), median household income (25%), low vacancy (20%), metro size/demand (15%). Scale 0–10.
Is Memphis a good city for appreciation investing?
Memphis, TN ranks #44 for appreciation investing with a score of 2.2/10. While not a top-ranked market for this strategy, it may have strengths in other investing approaches.
What is the average cap rate in Memphis?
The average cap rate in Memphis, TN is 9.2%. The median home price is $130,000 with a median monthly rent of $1,200, resulting in a rent-to-price ratio of 0.92%.
What are the property taxes in Memphis?
The effective property tax rate in Memphis, TN is 1.45%. On a $130,000 property, that translates to approximately $1,885 per year in property taxes.
How does Memphis compare to other appreciation markets?
Among our 52 tracked markets, Memphis, TN ranks #44 for appreciation investing. Other markets may be stronger for this particular strategy, though it may excel in different approaches.
What is driving population growth in Memphis?
Memphis, TN has a 5-year population growth rate of -1.5% and a median household income of $62,337. While population has declined, price appreciation can still occur through revitalization, institutional investment, and limited new housing supply.
Run Your Own Numbers for Memphis
Use our free calculators pre-filled with Memphis, TN market data, or adjust the numbers for your specific deal.
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