Real Estate Investing in Tennessee — 2026
We track 3 markets in Tennessee with detailed investment metrics. Most cities here score highest for brrrr investing.
Last updated: May 2026
Avg Cap Rate
6.7%
Avg Home Price
$266,667
Avg Rent
$1,467/mo
Avg Vacancy
9.2%
Tennessee Investment Markets
| City | Cap Rate | Median Price | Rent | Growth | Best Strategy |
|---|---|---|---|---|---|
| Memphis | 9.2% | $130,000 | $1,200 | -1.5% | BRRRR |
| Knoxville | 5.8% | $270,000 | $1,400 | +5.5% | House Hacking |
| Nashville | 5.2% | $400,000 | $1,800 | +10.0% | Appreciation |
Best Strategy for Tennessee
Based on our analysis, the dominant strategy across Tennessee markets is BRRRR investing. 1/3 cities in the state score highest for this approach. Markets ranked by BRRRR viability — factoring in affordable entry prices, cap rates, population growth, and rent-to-price ratio.
View BRRRR RankingsFrequently Asked Questions
How many real estate investment markets do you track in Tennessee?
We track 3 markets in Tennessee: Memphis, Knoxville, Nashville. Each market is analyzed across 10+ metrics including cap rates, rent-to-price ratios, vacancy rates, and population growth.
What is the average cap rate in Tennessee?
The average cap rate across our tracked Tennessee markets is 6.7%. Memphis has the highest cap rate at 9.2%. Average median home price is $266,667.
Is Tennessee good for real estate investing?
Tennessee offers diverse investment opportunities across multiple markets. The average vacancy rate is 9.2% and average property tax rate is 0.93%. Positive population growth signals healthy demand.
Which city in Tennessee has the best cap rate?
Memphis, TN has the highest average cap rate in Tennessee at 9.2%, with a median home price of $130,000 and median rent of $1,200.
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