Memphis, TN, Investor Yield Index
Yes, a median Memphis rental cash-flows and clears a DSCR loan today. It scores 100/100 (grade A) and ranks #2 of 18 tracked metros. At the Memphis metro median of $124,349 renting near $1,441/mo, the estimated DSCR is 1.42 and cash-on-cash is 8.84% at a 6.80% loan rate, which clears the 1.2 lender minimum.
Prices and rents are live Zillow medians. The 6.80% 30-year rate is a current market estimate. Neither is a lender quote, so run your real numbers below.
Index 100/100 · rank #2
Cap rate
Gross yield
Median price
DSCR
Cash-on-cash
Monthly rent
GRM
Run the numbers on a Memphis deal
Pre-filled with Memphis medians. Adjust price, rent, and rate to your actual deal.
Assumptions: 25% down + 3% closing costs, 40% opex/vacancy load 30-year amortization. Lenders typically require DSCR ≥ 1.2. Estimates, not a quote.
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Common questions about Memphis
Is Memphis, TN a good market for rental investors in 2026?
On the Investor Yield Index it scores 100/100 (grade A), ranking #2 of 18 tracked metros. The median price is $124,349 with rent around $1,441/mo, producing an estimated 8.34% cap rate and 1.42 DSCR at a 6.80% financing rate. At today's rates only 4 of the 18 tracked metros clear the 1.2 DSCR line on default terms, so the score is best read as where Memphis stands relative to other markets.
What is the cap rate in Memphis?
The model estimates a 8.34% cap rate at the median price-to-rent ratio, assuming a 40% operating-expense load. Your actual cap rate depends on the specific property and expenses.
Will a rental in Memphis qualify for a DSCR loan?
Yes, the estimated DSCR of 1.42 clears the typical 1.2 lender minimum at prevailing rates.
Markets ranked near Memphis
The closest metros above and below Memphis on the index, plus the top markets for comparison.
Cleveland, OH
Birmingham, AL
Chicago, IL
Tampa, FL
Indianapolis, IN
Index assumptions, 25% down, a 40% operating-expense load, 30-year amortization, and a 6.80% loan rate. DSCR is net operating income divided by annual debt service, lenders typically want at least 1.2. Cap rate, gross yield, DSCR, and cash-on-cash are weighted 30, 20, 30, and 20 percent. Prices and rents are live Zillow medians for the 18 tracked metros, the 6.80% 30-year rate is a current market estimate, and the numbers are for relative comparison, not lender quotes or investment advice.