Did you know Memphis has a population of over 600,000?
There’s a reason so many people are flocking there. Memphis is one of the oldest cities in the United States, with a deep and rich history.
Are you interested in purchasing a property in the largest city in Tennessee? If so, you should consider the average rent prices.
Today, we are sharing our guide to the most important information about the average rent in Memphis, TN.
Tennessee Rental Property
Home to the famous Graceland and the birthplace of rock-and-roll music, Memphis is a modern city with a classic character. People are constantly flocking to the city from all over.
As Memphis becomes more populated, the demand for housing increases. This is a great sign for you as an investor. There are a few things you need to keep in mind when you’re considering renting out your vacant property.
One is vacancy rates. The longer your house sits empty, the more money you lose. If you have multiple properties, the loss will be amplified.
The vacancy rates in Memphis are decreasing, and as more people move, the rates will continue to go down. It’s all based on supply and demand and availability; the more people come to Memphis, the better for you as a property investor.
Employment has been up in Memphis, which is a good sign for rental property owners. Three Fortune 500 companies in Memphis employ many people. There are also many other large and small businesses that attract people.
Almost half the population in Memphis are renters. In the past, many people have strived to buy a home, and a lot more people are choosing to rent. It allows them flexibility and is more appealing to the younger generation.
Cost of Living
When people are moving to a new city, they should consider the cost of living compared to other places. In Memphis in 2019, people spent an average of 20.76% of their income on rent.
This can be an appealing factor for future renters because the common rule is that people shouldn’t spend more than 30%. The overall cost of living in Memphis is lower than Tennessee’s average.
There are a few different neighborhoods in Memphis, and the average rent price varied based on the location of your property. If your property is in Cooper-Young in East Memphis, you’re going to want to market to young, single professionals as there is a lot of nightlife. The rent in this neighborhood averages $747 monthly.
Homes in Germantown are about $200,000 more than those in Cooper-Young. You’ll be able to charge about $1,400. This is a great area for families and retirees and will be the most expensive neighborhood in Memphis.
Midtown is close to downtown Memphis and is a great location for students and professionals who work close by. The area is relatively safe and you’ll be able to charge a little more than you would if your property was in Cooper-Young.
East Memphis is a great place to own property. It appeals to a wide variety of people including families, singles, and retirees. The average single-family home costs about $134,000 and rent is close to $750.
When it comes to apartments in East Memphis, you can charge a lot more. For example, you could charge close to $1,800 for a studio apartment.
Some people choose to live in apartments in Tennessee rather than single-family houses. While rent is a determinant of square footage, it’s also based on how many rooms it has.
Surprisingly, the most expensive apartment in Memphis is a studio. If you own one downtown, you’ll likely be able to get close to $1,400 a month.
The average rent for a one-bedroom is about $980 and for a two-bedroom is $1,100. Lastly, a three-bedroom is closer to $1,200.
Keep in mind these are just the averages. In The Core, a neighborhood in Memphis, a two-bedroom apartment can rent out for as much as $3,000.
Find the Best Deals
If you’ve never rented out your property before, you may not know where to start. You’re first going to want to find and screen tenants. This is an important step as you’ll want to know if they are going to be able to make their rent payments monthly.
You’ll also need to know the amount properties are renting for in your area. If you set the rent too low you’ll lose out on profit, but if you set it too high you’ll have trouble finding tenants. Knowing the average rent in Memphis, TN will give you an estimated amount that you can charge.
Be sure to look at what your property has versus others. Do you have extra amenities? You’ll typically be able to charge more than the average Tennessee rent.
Working with a property management team can be very helpful. They will be able to advise you on all aspects including setting the rental price and payment collections. With their connection, they will help decrease your vacancy rates by increasing your profits.
Average Rent in Memphis, TN
If you’re planning on relocating to a new place in the next few months, you need to know the going rate for the different kinds of houses and apartments in the area. As a property owner, you must maximize your profits.
Now that you know the average rent in Memphis, TN, you can start your search and we are here to help. Click here and we will help you rent out and manage your property.