Memphis · Rental Market Guide

Memphis Landlord Guide

Real rents, vacancy and price-to-rent by neighborhood, with Tennessee landlord law and how leasing works with a local Memphis manager.

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$209,800

Median home value

$1,263

Median gross rent

55.5%

Households that rent

13.8

Price-to-rent ratio

The Memphis Real Estate Market for Landlords

Memphis is one of the few large U.S. metros where a rental house still costs well under 15 years of its own rent.

It is also a city where rent, vacancy and returns change sharply from one ZIP code to the next, so citywide averages only tell part of the story. More than half of Memphis households rent, which is why the market here is so deep. The trade-off is vacancy, with roughly one in ten rental units empty at any time. This guide puts the real numbers in one place, from the team at Advantage Property Management, a Memphis-area property manager since 2008.

Get Started With Advantage

More than half of Memphis households rent, and the well-kept three-bedroom home is the core of what they rent: the exact property an individual investor can buy, finance and manage.

U.S. Census Bureau, American Community Survey 2024

Memphis Market at a Glance

Memphis Rental Market
Measure	City	Metro
Median home value	$209,800	$282,900
Median gross rent	$1,263/mo	$1,330/mo
Rental vacancy	10.1%	9.4%
Households that rent	55.5%	40.4%
Price-to-rent	13.8	17.7

Average Rent by Bedroom
Bedrooms	City	Metro
Studio	$1,128	$1,218
1 bedroom	$1,105	$1,139
2 bedrooms	$1,195	$1,251
3 bedrooms	$1,418	$1,436
4 bedrooms	$1,467	$1,846

Source: U.S. Census Bureau, ACS 2024 1-year (B25077, B25064, B25004, B25003, B25031). Gross rent includes tenant-paid utilities.

Vacancy & Price-to-Rent by Memphis Area

Citywide a Memphis home costs about 13.8 years of rent. In the neighborhoods investors actually buy, that runs from about 6 to 14, and vacancy swings from under 4% to almost 12%. These are not good or bad areas, just different strategies.

Memphis Rentals by Area (ZIP)
Area	Home value	Gross rent	Price-to-rent	Vacancy	HUD 3BR FY26
Frayser 38127	$90,300	$1,160	6.5	11.6%	$1,570
Parkway Village 38118	$107,600	$1,181	7.6	12.0%	$1,620
Berclair 38122	$123,000	$1,144	9.0	3.5%	$1,640
Whitehaven 38116	$138,600	$1,059	10.9	7.8%	$1,650
University of Memphis 38111	$190,100	$1,155	13.7	7.5%	$1,640
Bartlett 38134	$207,000	$1,198	14.4	4.7%	$1,680
City of Memphis	$209,800	$1,263	13.8	10.1%	by ZIP

Sources: U.S. Census Bureau, ACS 2020–2024 5-year by ZIP (B25004, B25064, B25077); city row ACS 2024 1-year; HUD USER FY2026 Small Area FMRs.

6.5–7.6price-to-rent

Cash Flow Areas

Frayser and Parkway Village: prices under 8 years of rent, but the highest vacancy. These deals live or die on renovation quality and tenant screening.

9.0–10.9price-to-rent

Balanced Areas

Berclair pairs a sub-10 ratio with just 3.5% vacancy, one of the best balances in the city. Whitehaven holds steady occupancy.

13.7–14.4price-to-rent

Steady-Hold Areas

University of Memphis and Bartlett: you pay more for the house, but you get steadier tenants and lower turnover.

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Why Investors Buy Rental Property in Memphis

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The math still works inside the city. A 13.8 citywide price-to-rent ratio, single digits in several neighborhoods, is rare for a metro of more than a million people.

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A deep renter base. 55.5% of Memphis households rent, so demand for a well-kept, fairly priced home is steady even in a softer year.

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Single-family inventory. About 4 in 10 Memphis renter households live in a detached single-family house, and nearly 6 in 10 in buildings of four units or fewer.

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A logistics and healthcare economy. The FedEx global hub and major hospital systems anchor the steady, working-family renter.

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Room for value-add. Older housing stock means a renovation can move a property into a better rent tier. See our BRRRR guide and buy-and-hold guide.

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Cooling rents reward discipline. Rents have eased since the 2021–2022 run-up, so buying right matters more than appreciation right now.

How Leasing a Memphis Rental Works

Rent assessment

We price your home on signed leases in your neighborhood, not on listing asks.

Make-ready

We get the home rent-ready so it shows well and leases faster. See what makes a property rent-ready.

Marketing & showings

Your home is listed and shown to qualified applicants quickly, because every vacant week is lost rent.

Tenant screening

Every applicant goes through background and rental-history checks against consistent written criteria.

Lease & move-in

A Tennessee-compliant lease, a documented move-in inspection, and the deposit handled correctly from day one.

Rent collection & reporting

Tenants pay online, and owners see income, expenses and statements in the owner portal.

Maintenance & inspections

Routine inspections and a vetted contractor network keep small problems from becoming vacancies. See inspection tips.

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Tennessee Landlord Basics for Memphis Owners

Shelby County is covered by the Tennessee Uniform Residential Landlord and Tenant Act (Tenn. Code Ann. Title 66, Chapter 28). The rules Memphis owners run into most:

Security deposits. No maximum, but held in a separate account at a state-regulated bank, with an itemized list of any damage deductions. (§ 66-28-301)
Late fees. A five-day grace period from the due date, and a late fee no higher than 10% of the past-due rent. (§ 66-28-201(d))
Nonpayment. Written notice that the lease ends if rent is not paid within 14 days, with a 7-day notice for a repeat breach within six months. (§ 66-28-505)
Rent increases. See when you can raise rent in Tennessee.

General information, not legal advice. For a specific situation, talk to a Tennessee attorney.

Areas We Manage Across the Memphis Metro

We manage single-family homes, duplexes and small multifamily in Memphis and the surrounding Shelby, Fayette and DeSoto County communities listed on our Memphis property management page.

FrayserBerclairParkway VillageWhitehavenUniversity of MemphisBartlettRaleighCordovaColliervilleGermantown

Memphis Landlord FAQ

What is the average rent in Memphis?

The median gross rent in the city of Memphis is $1,263 a month (ACS 2024). By size, it is about $1,195 for a two-bedroom and $1,418 for a three-bedroom, including utilities.

What is the rental vacancy rate in Memphis?

About 10.1% in the city and 9.4% across the metro (ACS 2024). It varies widely by ZIP code, from under 4% in parts of Berclair and Bartlett to around 12% in Parkway Village.

Is Memphis a good place to buy rental property?

For cash flow, often yes. The citywide price-to-rent ratio is 13.8, and several neighborhoods are below 10. The trade-off is higher vacancy and older housing, so buying right and managing well matter more than in pricier markets.

How much can a landlord charge for a late fee in Tennessee?

No more than 10% of the past-due rent, and only after a five-day grace period that starts on the due date (Tenn. Code Ann. § 66-28-201).

Is there a limit on security deposits in Tennessee?

No. Tennessee sets no maximum. The deposit must be kept in a separate account at a state-regulated bank (§ 66-28-301).

Do you manage Section 8 rentals in Memphis?

Yes. See Section 8 property management in Memphis.

Get a Memphis Rent Assessment

Whether you own one house in Frayser or a portfolio across Shelby County, we will tell you what it should rent for and what it takes to keep it rented.

901-347-3148

Memphis Property Management