Memphis, TN variant. This is a Memphis, TN-specific version of the Rental Yield Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Rental Yield Calculator.
Memphis's gross rental yield - annual rent ÷ property price - is about 9.5%, based on $1,300/month rent on a $165,000 median home.
Rental yield in Memphis
Gross yield = ($1,300 × 12) ÷ $165,000 = 9.5%. Net yield subtracts property tax (0.75%), insurance, vacancy, and maintenance.
High-price metros tend to show lower yields (price outruns rent); affordable metros often yield more. Memphis's yield is attractive for cash-flow investors.
About Memphis, TN
Memphis residents pay no state or city income tax, since Tennessee does not impose a personal income tax on wages.
Memphis is one of the more affordable large-city housing markets in the country, with low home prices and rents.
Memphis's economy is anchored by logistics and distribution, serving as a major national shipping and freight hub.
Worked example: Memphis yield
Annual rent $15,600 ÷ price $165,000 = 9.5% gross. After 0.75% property tax and ~1% maintenance, net yield is meaningfully lower.
Quick reference
- Median home value: $165,000
- Median rent: $1,300/mo
- Median household income: $49,978
- Local sales tax: 9.75%
- Effective property tax rate: 0.75%
- Cost of living index: 84 (US avg = 100)
Frequently Asked Questions
What is a good rental yield?
Many investors target 6-8% gross; Memphis runs about 9.5%.
How is rental yield calculated?
Gross yield = annual rent ÷ purchase price. Net yield also subtracts taxes, insurance, vacancy, and upkeep.