Cash Flow Investing in Memphis, TN
Data-driven cash flow 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 Cash Flow
Cap Rate
9.2%
Strong
Rent-to-Price
0.92%
Below 1% rule
Vacancy Rate
10.6%
Elevated
Property Tax
1.45%
Low
Cash Flow Investment Thesis
Memphis is the established turnkey rental capital of the US. Multiple turnkey providers operate here with proven track records, making it accessible for out-of-state investors. The FedEx logistics hub provides employment stability that supports reliable rental demand.
How Memphis Compares
| Rank | City | Cash Flow Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #-2 | Detroit, MI | 5.7 | 11.2% | $85,000 |
| #-1 | Akron, OH | 5.7 | 8.6% | $100,000 |
| #0 | Cleveland, OH | 5.6 | 9.8% | $105,000 |
| #1 | Toledo, OH | 5.4 | 9.0% | $88,000 |
| #2 | Dayton, OH | 5.4 | 8.8% | $95,000 |
| #3 | Birmingham, AL | 5.4 | 8.5% | $125,000 |
| #4 | Memphis, TN | 5.4 | 9.2% | $130,000 |
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 cash flow score for Memphis, TN?
Memphis, TN scores 5.4 out of 10 on our cash flow score, ranking #4 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.
Is Memphis a good city for cash flow investing?
Yes — Memphis, TN ranks in the top 10 for cash flow investing with a score of 5.4/10. 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 cash flow markets?
Among our 52 tracked markets, Memphis, TN ranks #4 for cash flow investing. It is one of the top-performing markets for this strategy.
Does Memphis meet the 1% rule?
Memphis, TN has a rent-to-price ratio of 0.92%, which falls just below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.
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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