House Hacking Investing in Memphis, TN
Data-driven house hacking 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 House Hacking
Median Price
$130,000
FHA 3.5% down: $4,550
Median Rent
$1,200/mo
Per-unit rental income
Vacancy Rate
10.6%
Elevated
Pop. Growth
-1.5%
5-year trend
House Hacking 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 | House Hack Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #7 | Tulsa, OK | 5.2 | 7.9% | $155,000 |
| #8 | Cincinnati, OH | 5.2 | 7.0% | $195,000 |
| #9 | Boise, ID | 5.2 | 4.5% | $420,000 |
| #10 | Indianapolis, IN | 5.1 | 8.1% | $175,000 |
| #11 | Oklahoma City, OK | 5.1 | 7.7% | $175,000 |
| #12 | Louisville, KY | 5.1 | 7.3% | $195,000 |
| #13 | Memphis, TN | 5.1 | 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 house hack score for Memphis, TN?
Memphis, TN scores 5.1 out of 10 on our house hack score, ranking #13 out of 52 markets we track. Weighted composite: affordable entry price (30%), rent-to-price ratio (25%), low vacancy (20%), population growth (15%), livability/income (10%). Scale 0–10.
Is Memphis a good city for house hacking investing?
Memphis, TN ranks #13 for house hacking investing — a solid mid-tier market with a score of 5.1/10. The median home price is $130,000 with a 9.2% average cap rate.
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 house hacking markets?
Among our 52 tracked markets, Memphis, TN ranks #13 for house hacking investing. It performs above average for this strategy.
Can I FHA-finance a house hack in Memphis?
With a median home price of $130,000, most 2-4 unit properties in Memphis, TN should fall within FHA loan limits. An FHA loan with 3.5% down would require approximately $4,550 as a down payment. Rental income from additional units (median $1,200/month each) can significantly offset your mortgage payment.
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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