BRRRR Investing in Memphis, TN

BRRRR Score: 6.2/10Ranked #3 of 52 markets

Data-driven brrrr analysis for Memphis, TN — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

BRRRR Score:6.2
Cap Rate(30%)
9.2%7.1
Affordable Entry Price(25%)
$130,0008.9
Rent-to-Price Ratio(25%)
0.92%6.4
Population Growth(20%)
-1.5%1.3

Key Metrics for BRRRR

Median Price

$130,000

Very affordable

Cap Rate

9.2%

Strong

Rent-to-Price

0.92%

Post-refi cash flow indicator

Pop. Growth

-1.5%

5-year trend

BRRRR Investment Thesis

Memphis has a deep pool of distressed properties and established contractor networks familiar with investor renovations. The turnkey infrastructure means you can find rehab crews who specialize in investor-grade renovations, keeping costs predictable.

How Memphis Compares

RankCityBRRRR ScoreCap RateMedian Price
#-1Detroit, MI7.611.2%$85,000
#0Cleveland, OH6.79.8%$105,000
#1Toledo, OH6.29.0%$88,000
#2Dayton, OH6.28.8%$95,000
#3Memphis, TN6.29.2%$130,000
#4Akron, OH6.18.6%$100,000

Showing markets ranked near Memphis for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,200/mo)$14,400
Less: Vacancy (10.6%)-$1,526
Less: Property Tax (1.45%)-$1,885
Less: Insurance (~0.5%)-$650
Less: Maintenance (~1.5%)-$1,950
Estimated NOI$8,389
Implied Cap Rate6.5%

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 brrrr score for Memphis, TN?

Memphis, TN scores 6.2 out of 10 on our brrrr score, ranking #3 out of 52 markets we track. Weighted composite: cap rate (30%), affordable entry price (25%), rent-to-price ratio (25%), population growth (20%). Scale 0–10.

Is Memphis a good city for brrrr investing?

Yes — Memphis, TN ranks in the top 10 for brrrr investing with a score of 6.2/10. Key factors include a median home price of $130,000, cap rate of 9.2%, and population growth of -1.5%.

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 brrrr markets?

Among our 52 tracked markets, Memphis, TN ranks #3 for brrrr investing. It is one of the top-performing markets for this strategy.

What is the typical entry price for BRRRR deals in Memphis?

The median home price in Memphis, TN is $130,000. Distressed BRRRR-eligible properties typically sell for 60-70% of median value, putting estimated acquisition costs around $84,500. After rehab, the goal is to refinance at or near the full $130,000 after-repair value.

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.

Cap Rate Calculator (Memphis Data)BRRRR CalculatorRental Cash Flow CalculatorCash-on-Cash Return Calculator

Memphis by Strategy

Cash Flow5.4BRRRR6.2House Hacking5.1Appreciation2.2

Market Data

Memphis Cap Rate DetailsAll BRRRR RankingsAll Tennessee MarketsFull 52-City Data Table

Find Financing

Compare lenders for your Memphis investment

DSCR Lenders in TennesseeHard Money in TennesseeFull Lender Directory →

Other Strategy Rankings

Best Cities for Cash FlowBest Cities for House HackingBest Cities for Appreciation

Related Guides

The BRRRR Method: Complete GuideBRRRR Rehab Costs: How to EstimateHard Money Loans Explained

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