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Best Neighborhoods in Memphis, TN for Rental Property Investors

City Median Price

$180,000

City Median Rent

$1,100/mo

City DSCR (75% LTV)

1.01

Neighborhoods

7

Memphis remains one of the strongest cash flow markets in the country with median home prices well below the national average. The city benefits from a large renter population, major logistics employers like FedEx, and steady demand across working-class neighborhoods.

Whitehaven

ZIP: 38109
Grade C

Whitehaven is a historically significant area near Graceland with affordable entry points and strong rental demand from working-class tenants. Investors should budget for deferred maintenance on older housing stock but can achieve excellent cash-on-cash returns.

Price: $80K-$130KRent: $900-$1,200Strategy: BRRRR

Hickory Hill

ZIP: 38115
Grade C

Hickory Hill offers some of the highest rent-to-price ratios in the metro area. The neighborhood has a diverse tenant base and proximity to distribution centers that provide stable employment. Value-add renovations on distressed properties can yield significant equity gains.

Price: $90K-$140KRent: $950-$1,250Strategy: Value-Add

Raleigh

ZIP: 38128
Grade C

North Memphis Raleigh area provides deep value opportunities with properties frequently available below replacement cost. Tenant demand is consistent due to proximity to industrial employers along the I-40 corridor.

Price: $85K-$135KRent: $900-$1,150Strategy: BRRRR

Cordova

ZIP: 38018
Grade A

Cordova is a suburban community east of Memphis with highly rated schools and newer construction. Properties attract quality long-term tenants including young professionals and families, resulting in lower turnover and fewer maintenance calls.

Price: $220K-$320KRent: $1,500-$1,900Strategy: Buy and Hold

Bartlett

ZIP: 38134
Grade A

Bartlett is an established suburb with strong school ratings and low crime. Rental properties here attract stable tenants willing to sign multi-year leases. Appreciation has been modest but consistent over the past decade.

Price: $200K-$280KRent: $1,400-$1,750Strategy: Buy and Hold

Frayser

ZIP: 38127
Grade C

Frayser is one of the most affordable entry points in the Memphis market with properties regularly trading under six figures. Investors focused on pure cash flow will find strong cap rates here, though property management quality is critical to success.

Price: $55K-$100KRent: $750-$1,000Strategy: BRRRR

Cooper-Young

ZIP: 38104
Grade B

Cooper-Young is a trendy midtown neighborhood with walkable restaurants and nightlife. Short-term rental regulations are favorable here, and the area attracts tourists and business travelers. Appreciation potential is above average for Memphis.

Price: $250K-$380KRent: $1,600-$2,100Strategy: Airbnb/STR

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