Why Investors Are Buying Rental Properties in Memphis, TN
By The Crecco Companies 5 min read Memphis · Tennessee
Memphis, Tennessee doesn't always make the front page of real estate investment publications. It doesn't have the flashy growth story of Nashville or the coastal appeal of a Sunbelt city like Tampa. But for investors focused on cash flow, stable rental demand, and long-term holds, Memphis has quietly become one of the most compelling markets in the Southeast.
The Crecco Companies has been investing in Memphis residential properties for years. Here's what we've observed on the ground — and why we keep coming back.
1. Property values remain accessible
In most major metros, rising home prices have compressed rental yields to the point where cash flow is difficult without significant leverage. Memphis is different. Entry-level single-family homes and small multifamily properties are still available at price points that allow for meaningful cash-on-cash returns — especially compared to markets like New York, where The Crecco Companies is also active.
For investors priced out of coastal markets, or looking to diversify into higher-yield assets, Memphis offers a meaningful alternative.
2. Rental demand is consistent and deep
Memphis has a large renter population relative to its size. Homeownership rates in the city remain below the national average, which means a substantial portion of residents are long-term renters by circumstance or choice. This creates a deep pool of qualified applicants for well-maintained rental properties in solid neighborhoods.
The best rental investments aren't always in the fastest-growing markets. They're in markets where the fundamentals — demand, affordability, and stability — are quietly working in your favor.
3. Tennessee's landlord-friendly legal environment
State law matters in real estate investment, and Tennessee's legal framework is generally considered favorable for property owners. Compared to states like New York — where tenant protections, eviction timelines, and regulatory requirements are more complex — Tennessee offers a more straightforward operating environment for residential landlords.
This doesn't mean cutting corners on tenant relationships. Our philosophy has always been that a good tenant relationship is the best protection an investor has. But it does mean that when problems arise, the process for resolving them is clearer and faster.
4. No state income tax
Tennessee has no state income tax on wages or investment income, which improves the net return profile of rental properties held in the state. For out-of-state investors accustomed to high state tax environments, this is a meaningful advantage worth factoring into any return analysis.
5. Infrastructure and economic anchors
Memphis is the second-largest city in Tennessee and home to significant economic anchors including FedEx's global headquarters, a major logistics hub, and a large healthcare sector. These industries support stable employment and ongoing population demand — the underlying drivers of long-term rental market health.
What we look for in a Memphis investment property
After years of acquiring and managing properties in the Memphis market, here's what we prioritize:
Stable, established neighborhoods with low vacancy rates
Properties that need cosmetic work, not structural repair
Proximity to employment corridors and transit routes
Price points that support positive cash flow from day one
Properties we'd be comfortable managing for 10+ years
Interested in investing alongside us?
The Crecco Companies actively acquires and manages residential rental properties in Memphis and across our four-state portfolio. If you're an investor looking for a partner with boots on the ground and a 30-year track record, we'd welcome a conversation.
