Memphis is a classic cash-flow market with cap rates above 7.5%. Logistics employment anchors the long thesis. This page combines HUD Fair Market Rent anchors, ApartmentList-derived vacancy estimates, and CBRE-tier cap-rate benchmarks into one landlord-focused view.
Memphis is a classic cash-flow market with cap rates above 7.5%. Logistics employment anchors the long thesis.
Vacancy is currently 7.2% with a year-over-year rent change of +1.5%. Rent direction is positive — underwriting can credit modest growth in year-2 rents but should not extrapolate aggressive trajectories given vacancy levels.
For deal-level analysis, the cap-rate calculator uses our Tier 3 benchmark (mid 7.8% for single-family). The cash-flow analyzer will give you a full P&L including debt service.
| Bedrooms | Median rent | Estimated range |
|---|---|---|
| Studio | $1,088 | $936 – $1,262 |
| 1 BR | $1,185 | $1,019 – $1,375 |
| 2 BR | $1,308 | $1,125 – $1,517 |
| 3 BR | $1,728 | $1,486 – $2,004 |
| 4 BR | $2,011 | $1,729 – $2,333 |
Anchored to HUD FMR for ZIP 38104, aged forward from 2025-10-01 with BLS CPI Shelter (+3.2% / yr, July 2026). Use the estimator below for a different ZIP within Memphis.
This city's raw HUD FY2026 2BR FMR placed among the 15 prebuilt metros in markets.json. One vintage point — not a fabricated history.
Pre-filled for ZIP 38104. Change any field to re-estimate.
The HUD-anchored median 2-bedroom rent in Memphis is approximately $1,308 with year-over-year growth of +1.5%. Individual rents vary widely by submarket and property condition — use the Rent Estimator above for a ZIP-specific number.
Memphis sits in our Tier 3 group with an estimated cap rate band averaging 7.8% for single-family rentals and a vacancy rate of 7.2%. Memphis is a classic cash-flow market with cap rates above 7.5%. Logistics employment anchors the long thesis.
Single-family rental cap rates in Memphis typically land near 7.8%, with a metro-tier band drawn from CBRE survey ranges. Run the Cap Rate Calculator for a specific deal.
Year-over-year rent change is +1.5%. Forward 12-month projection blends recent metro trend with BLS shelter CPI. Use the LandlordIQ /get_rent_growth endpoint for the live projection.
No (TN state preemption). Notice to vacate: 30 days. Security deposit cap: No statutory cap. TN URLTA applies. Memphis requires lead-paint disclosure on pre-1978 units (federal). Plain-English summary, not legal advice.
Data: HUD Fair Market Rents (FY2026, public, revised county file). Vacancy and rent growth are estimated blends of public datasets clearly labeled. Cap rate band is the Tier 3 benchmark from our benchmarks dataset. Regulation summary is editorial — not legal advice. See methodology.