Single-family rental cap rates and gross yields for 17 Memphis areas, computed from county sale records and live rent comps. Every number is sourced, and the math is shown.
There is no single "Memphis cap rate." A single-family rental computes near 8.5% in Hyde Park and near 2.6% in East Memphis, and the gap is the whole story: yield areas trade current cash flow for more turnover and management, price areas trade yield for stability and appreciation.
The table below pairs the median single-family sale price in each area with the median three-bedroom market rent, then carries it down to a capitalization rate after conservative expense assumptions. Sale prices are pulled from Shelby County records over a trailing 24-month window. Rents come from live area rent comps. Snapshot date: June 9, 2026.
Ranked by capitalization rate, highest yield first. Cap rate is net operating income divided by median sale price, where net income is annual rent minus estimated tax, insurance, management, maintenance, and vacancy. Gross yield is annual rent over price before expenses.
| Memphis area | Median SFR price | Median 3BR rent | Gross yield | Est. net income | Cap rate |
|---|---|---|---|---|---|
| Hyde Park & Hollywood Yield | $102,000 | $1,195 * | 14.1% | $8,657 | 8.5% |
| Orange Mound Yield | $117,191 | $1,285 | 13.2% | $9,287 | 7.9% |
| South Memphis Yield | $97,000 | $1,025 * | 12.7% | $7,136 | 7.4% |
| Frayser Yield | $115,000 | $1,095 | 11.4% | $7,539 | 6.6% |
| Whitehaven Balanced | $140,000 | $1,195 | 10.2% | $8,125 | 5.8% |
| Parkway Village-Oakhaven Balanced | $152,600 | $1,288 | 10.1% | $8,815 | 5.8% |
| Raleigh Balanced | $162,550 | $1,295 | 9.6% | $8,746 | 5.4% |
| Berclair-Highland Heights Balanced | $160,000 | $1,200 | 9.0% | $7,892 | 4.9% |
| University-Audubon Balanced | $180,000 | $1,250 | 8.3% | $8,080 | 4.5% |
| Hickory Hill Balanced | $230,000 | $1,550 | 8.1% | $10,188 | 4.4% |
| Uptown / North Memphis Balanced | $205,500 | $1,350 * | 7.9% | $8,659 | 4.2% |
| Northeast Memphis Balanced | $245,000 | $1,550 | 7.6% | $9,978 | 4.1% |
| Midtown Appreciation | $352,700 | $2,023 * | 6.9% | $12,893 | 3.7% |
| Cordova Appreciation | $320,000 | $1,748 | 6.6% | $10,777 | 3.4% |
| Far East Memphis Appreciation | $315,000 | $1,698 * | 6.5% | $10,379 | 3.3% |
| East Memphis Appreciation | $310,000 | $1,450 | 5.6% | $8,132 | 2.6% |
| Binghampton Appreciation | $255,000 | $1,175 * | 5.5% | $6,323 | 2.5% |
* Rent sample under 30 comps for this area. Treat the rent figure as directional and verify against a current comp set before underwriting. Sale-price samples range from 130 to over 1,000 transactions per area and are well-supported across the board.
Hyde Park, Orange Mound, South Memphis, and Frayser show the highest computed cap rates because purchase prices are low relative to rent. The tradeoff is real: more turnover, more deferred maintenance, longer vacancy, and tougher collections. The paper yield is high, the operational drag is higher, and the gap between the two is exactly where management quality decides your actual return.
Whitehaven, Parkway Village, Raleigh, Hickory Hill, and the University area sit in the middle: solid rents, steadier tenancy, and prices that have not run away from rent. For most out-of-area owners building a Memphis single-family position, this band is the workhorse.
Midtown, Cordova, East Memphis, and the far-east suburbs compute the lowest current yields. Buyers here are paying for price stability and long-run appreciation, not this year's cash flow. A 3% cap area with low turnover can quietly beat an 8% cap area that eats a month of vacancy and a heavy make-ready every other year.
This page is area-level. For a single property, we return a full underwriting built from live Memphis comps: rent strategy, expense stack, and the cap rate for that exact address with every comp behind it.
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