Memphis rental property analysis — calculator + 2026 cap-rate benchmarks
Run a Memphis rental screen in 60 seconds with TrueCap. Address inputs can start with editable tax, HUD area-rent, and national mortgage benchmarks. Replace them with the parcel record, current rent comps, an insurance quote, and borrower-specific financing. Below: rough neighborhood cap-rate orientation plus turnkey diligence questions.
Memphis neighborhood cap-rate map (2026)
Ranges are rough orientation, not appraisal-grade comps or achievable returns. Verify the address, condition, rent, expenses, management, and financing; independently diligence any turnkey operator and pricing.
| Submarket | Cap rate | Rent | Character |
|---|---|---|---|
| Downtown / Harbor Town / South Main | 4-6% | $1,400-2,400 | Urban revival, lofts + condos; appreciation-leaning |
| Midtown / Cooper-Young / Overton Square | 5-7% | $1,200-1,900 | Walkable established neighborhoods, solid tenant base |
| East Memphis / Germantown (suburb) | 5-7% | $1,400-2,100 | Premium family suburbs, top schools, lower vacancy |
| Bartlett / Cordova (north suburbs) | 6-8% | $1,200-1,700 | Family neighborhoods, steady demand, newer SFR |
| Whitehaven / Westwood (south) | 8-10% | $900-1,300 | Working-class neighborhoods, common turnkey targets |
| Frayser / Raleigh (north) | 10-13% | $700-1,100 | Higher cap, real tenant + property risk; deep due diligence |
| Orange Mound / South Memphis | 12%+ | $650-1,000 | Highest cap territory; requires hands-on PM relationships |
Why out-of-state investors screen Memphis
Memphis combines accessible inventory with an established property-management and turnkey ecosystem. That can simplify vendor discovery, but it does not make ownership passive or validate an operator's price, rehab, tenant, fees, or return projection. Compare providers and verify every property input independently.
Frequently asked — Memphis investing
What's a typical Memphis cap rate in 2026?
The table provides rough screening ranges, not achievable returns. Replace them with the property's current rent roll or comparable leases, tax bill, insurance quote, condition, vacancy and collections history, management proposal, capital plan, and financing before relying on a cap rate.
What's the deal with Memphis turnkey rentals?
Memphis has an established turnkey ecosystem, but 'turnkey' does not prove rehab quality, tenant performance, management quality, passivity, or return. Independently verify price against comps, completed work and permits, inspection, lease and collected funds, rent support, insurance, reserves, and the full management agreement.
What's the property tax rate in Memphis?
Parcel tax depends on the jurisdiction, assessed value, taxing units, and any exemptions. TrueCap's state or county input is a screening estimate; confirm the current parcel record and a post-sale scenario with the relevant assessor before underwriting.
Is Memphis flooding/insurance a risk?
Flood and insurance exposure are property-specific. Review current flood maps plus prior-loss, drainage, roof, and condition evidence, and obtain subject-property hazard and flood quotes with limits, deductibles, and exclusions rather than using a citywide premium range.
How's tenant quality in Memphis cash-flow neighborhoods?
Do not infer tenant performance from a neighborhood, voucher status, or operator reputation. Verify the lease, collected funds, delinquency and turnover history, apply lawful screening consistently, and use current local legal guidance rather than a fixed eviction timeline.
Is Memphis better than Detroit for cash flow?
Neither city establishes a safer or higher-return outcome. Compare address-level rent, taxes, insurance, condition, title, vacancy, management, financing, and downside scenarios using the same methodology.
Run your next Memphis deal in 60 seconds
Paste the address to start with editable tax, HUD area-rent, and national rate benchmarks. Replace them with property- and borrower-specific evidence before relying on cap rate, CoC, DSCR, or monthly cash flow. Free to start. No card required.
Open the analyzerSources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.
Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated August 2026
Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for editable property-screening estimates. Reviewed by the TrueCap team. See our full methodology.
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