Buying rental property in Memphis, Tennessee

The institutions that fill rentals in Memphis, TN

• EmployerMore than 30,000 team members in Memphis

  FedEx

  Global headquarters and the Memphis World Hub. Trade, transportation, and utilities make up 29% of the metro's jobs, so FedEx is the employer every Memphis owner follows.

  Source: FedEx
• HospitalMore than 11,000 associates plus 2,000 providers (undated)

  Methodist Le Bonheur Healthcare

  The largest of the metro's hospital systems, including Le Bonheur Children's Hospital.

  Source: St. Jude Neighborly
• Hospital2,300 new positions planned under its 2022 to 2027 strategic plan

  St. Jude Children's Research Hospital

  A research hospital with a national donor base, which makes its hiring less tied to the local economy.

  Source: Local Memphis
• University19,652 students, fall 2025

  University of Memphis

  Enrollment held steady in fall 2025, with first-year students up 4.3%.

  Source: University of Memphis

What Lineage offers in Memphis

Memphis is where Lineage offers properties for investors who care most about yield and low carrying costs. Most are fully renovated existing single-family properties, priced below the metro's $244,228 typical value, in Class A and B areas of Shelby, DeSoto, Tipton, and Fayette counties and outside flood zones. Tax district changes the math at the same price: a property in unincorporated Shelby County carries about $1,200 a year less property tax than one inside the City of Memphis. Because vacancy runs high here, Lineage works with an established local property management partner and requires a tenant vetted by a licensed manager, on a signed 12-month lease, before close. Every property meets the Lineage Standard, including an inspection Lineage orders and at least half the useful life left on major systems.

• Single Family
  Memphis, TN

  3906 Winwood Dr

  $165,000

  3 bd1.5 ba1,380 sq ftBuilt 1977

  Est. cash to close

  about $42K

  Rent estimate

  $1,350/mo

  Cash ROI

  6.5%

  Build my plan with this property →

Cash ROI is the projected average yearly cash flow over 10 years on a 20% down payment, interest-only, after vacancy and maintenance. Every property’s figure comes from its own pro forma, and the assumptions behind it vary by listing. Est. cash to close is the 20% down payment plus about 5.2% of the price in estimated closing costs.

Memphis, TN against the national figure

The seven measures Lineage checks in every market, each beside the national figure for the same period.

• Rent to price (gross yield)

  above national

  Memphis, TN

  7.99%

  National

  7.41%

  The typical single-family rent is $1,625 a month against a typical value of $244,228. This is what Memphis is for: prices are low relative to rents.

  Zillow ZORI and ZHVI, single-family · August 2026

• Rent growth

  below national

  Memphis, TN

  +2.28%

  National

  +3.02%

  Rents are rising, but more slowly than the country, so the case here rests on today's yield rather than rent growth.

  Zillow ZORI, single-family · August 2026

• Jobs and population

  below national

  Memphis, TN

  Jobs -0.4%, population -0.31%

  National

  Jobs +0.30%, population +0.5%

  The job base is flat to slightly down, with losses in business services and finance, and unemployment rose to 4.6%.

  BLS Current Employment Statistics (jobs, August 2026), Census Bureau Vintage 2025 estimates (population, July 2025) · August 2026

• Vacancy and new supply

  above national

  Memphis, TN

  8.27%

  National

  5.54%

  Apartment vacancy is about 15.1% and has risen every year since 2021. Discounted apartments compete at the low end of the market, which is why tenant quality and the property manager matter more here than in most metros.

  Census ACS 2020 to 2024 five-year estimates, CoStar · ACS 2020 to 2024, apartments Q2 2026

• Landlord law

  favorable

  Memphis, TN

  14-day notice

  National

  Varies by state

  A tenant has 14 days after written notice to pay overdue rent, and a lease can waive that notice in bold print. The state sets no cap on deposits and bars local rent control.

  Tenn. Code 66-28-505, 66-28-301, and 66-35-102 · November 2026

• Insurance

  favorable

  Memphis, TN

  $1,250 to $1,800 a year

  National

  $3,057 a year

  That range is what Lineage sees on its own rental properties. The national figure is Insurify's projected 2026 average for an owner-occupied policy, which is a different measure. On Insurify's measure, Tennessee averages $3,094. Tennessee premiums are projected up 3% in 2026, against 4% nationally.

  Lineage placement experience, Insurify 2026 projections · October 2026

• Property management depth

  favorable

  Memphis, TN

  8% to 10% of rent

  National

  No national benchmark

  Lineage has a formal partnership with a locally owned Memphis manager, with long-tenured local firms behind it. An experienced manager is the main tool for keeping vacancy and turnover down in this market.

  Lineage market research · October 2026

Law, taxes, and insurance

What could go wrong

• Apartment surplus

  Apartment vacancy is about 15.1% and has risen every year since 2021. Discounted apartments compete with single-family rentals at the lower end of the market, which can lengthen the time to re-lease a property.

• A soft job market tied to one employer

  Jobs fell 0.4% in the year to August 2026 and unemployment rose to 4.6%. FedEx employs more than 30,000 people here. FedEx Supply Chain laid off 611 workers at two Memphis warehouses in October 2025 after a customer moved its distribution to Indianapolis. No large cut at the hub or headquarters has been announced, and one would change the outlook.

• A shrinking population

  The metro lost 0.31% of its population in the year to July 2025. Fewer new households means less pressure on rents.

• Tornado, flood, and earthquake exposure

  FEMA rates tornado risk very high in Shelby County, and the April 2025 floods pushed the Wolf River to its fourth-highest level on record. Shelby sits on the New Madrid zone, and standard policies exclude earthquake damage.

Questions investors ask