New Data: Memphis Among Top U.S. Markets for Rental Growth and Yield in 2025

Published: July 10, 2025
Topics: Housing Market, Memphis

Understanding where and why rental markets are shifting is essential for any real estate investor focused on long-term performance. While many U.S. metros are seeing softening demand or declining rents, Memphis continues to defy national trends.

Recent data shows that Memphis ranks among the most affordable and resilient rental markets in the country. From vacancy rates to rent growth to investor yield, the metrics tell a clear story—this market is worth watching.

Below is a snapshot of current rental market conditions in Memphis, supported by national sources and recent reports.

The Memphis Real Estate Market Today

🔹 “MEMPHIS is the #1 Affordable City Where Investors Are Buying Big,” says Realtor.com.

🔹 “MEMPHIS renters face a unique situation as the area’s rental prices climb against the tide of declining rates across the country.” – says the Memphis Business Journal.

🔹 Four metros saw rents hit a record high in May: Chicago (up 1.9% Y/Y to $1,781), MEMPHIS (1.9% to $1,274), Cincinnati (7.4% year over year to a record $1,460) and Washington, D.C. (2.4% to $2,104).

🔹 Single-family build-to-rent advertised rates continued to rebound, up $3 in May to $2,183.

🔹 Rentometer shows MEMPHIS is the #4 Metro Best Large Cities for Rental Yield in the country.

🔹 Zillow’s Market Heat Index shows MEMPHIS in the #5 spot for best places to buy a home thanks to the city’s affordability — it costs residents less per month to own than rent.

🔹 The national MULTIFAMILY vacancy rate currently stands at 7% 😲😲😲, the highest reading ever recorded in The Apartment List index.

🔹 Nationally, SINGLE-FAMILY vacancy rates were stable in April at 5.2% 🥱

🔹 Meridian Property Management outperforms the nation’s average with an impressive 3.5% vacancy rate 🥳🥳🥳.

These data points highlight a market where rental demand remains strong, vacancy is low, and price-to-rent ratios are favorable for cash flow. In contrast to overheated or over regulated metros, Memphis offers stability and yield—making it an attractive option for both first-time and seasoned investors.

The Best Places to Invest in Memphis in 2025

Real estate success isn’t just about choosing the right city — it’s about choosing the right submarket. At Meridian, we evaluate neighborhoods using hyper-local data to identify areas where demand consistently outpaces supply. That’s where the best opportunities are for long-term cash flow and appreciation.

The data below comes from a recent MarketGraphics Research Group report, which shows an ongoing supply-demand imbalance in several key Memphis suburbs. These are the very areas where we’re actively building and managing new construction rental homes — communities like Horn Lake, Olive Branch, and Southaven.

With zero or near-zero available inventory and strong buyer and renter demand, these submarkets are positioned for continued growth. High quality tenants are moving here for highly rated schools, job access, and affordability — and investors are following.

This data confirms what we see on the ground every day: Memphis-area suburbs are some of the most resilient and high-performing rental markets in the country.

Why the Memphis Rental Market Continues to Grow

The strength of the Memphis rental market isn’t random—it’s rooted in structural advantages that continue to drive demand, keep costs manageable, and support long-term investment performance. Here’s what sets Memphis apart from other U.S. metros:

Employer-Driven Migration
Major employers like FedEx (headquartered in Memphis), Amazon, and St. Jude are key drivers of local job growth, but the most transformative development is BlueOval City—Ford’s $5.6 billion electric vehicle plant just outside Memphis. These employers are bringing thousands of new jobs to the region, which directly fuels population growth and sustained rental demand.

Lower Cost of Living and Migration from High-Cost States
With no state income tax, affordable housing, and a lower overall cost of living, Memphis has become an increasingly attractive destination for households relocating from high-cost states like California, Illinois, and New York. Remote workers, retirees, and families seeking more space are all contributing to inbound migration—further strengthening demand for single-family rentals.

Suburban Growth and Build-to-Rent Demand
Unlike many dense, urban metros, Memphis has land and infrastructure to support continued suburban expansion. Communities like Oakland, Olive Branch, and Horn Lake offer strong school districts, new construction homes, and convenient access to jobs. This aligns perfectly with rising national demand for build-to-rent (BTR) housing—especially among tenants seeking the benefits of home living with professional management.

Fewer Regulatory Barriers and Faster Build Cycles
Compared to more regulated coastal markets, Memphis offers a more predictable and efficient building environment. Permitting timelines are faster, zoning is more flexible, and there are fewer layers of compliance that can delay development. This allows builders and investors to bring new inventory online faster—keeping pace with demand and controlling costs in a way that’s increasingly difficult elsewhere.

What This Means for Real Estate Investors

Memphis stands out not only for its affordability but for its long-term fundamentals. For investors evaluating where to allocate capital in 2025, markets like Memphis offer a rare combination of:

Stable tenant demand driven by jobs and migration
Low vacancy rates and competitive rents
Regulatory clarity and lower carrying costs
Entry prices far below national averages

Whether you’re looking to expand your portfolio or diversify out of a high-cost market, Memphis provides strong cash flow potential—and a more predictable ownership experience.

How Does Memphis Compare to the Rest of the US?

National data from Realtor.com reveals a sharp divide in how U.S. markets are performing. While many major metros are seeing tax hikes, price cuts, and investor pullback, Memphis stands out for the opposite reasons.

Memphis ranks among the top 10 most affordable cities where investors are actively buying
It’s not among the markets seeing major property tax increases
And it’s not on the list of cities with widespread price reductions

These maps help illustrate why investors are looking to Memphis as a more stable, high-yield alternative in 2025.

Learn More About The Memphis Real Estate Market

Sources:
Rental Housing Journal (July 2025)
Apartment List (July 2025)
The Memphis Business Journal (June 2025)
Multifamily Report – Yardi Matrix (May 2025)
Zillow’s Best Places to Buy (April 2025)
Rentometer Best Cities for Rental Returns (April 2025)
Realtor.com (June 2025)

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Talk To The Author

Brian Conlon is the Director of Business Development at Meridian Pacific Properties. With years of experience in real estate investing and turnkey property management, Brian specializes in helping investors optimize cash flow, plan for long-term property performance, and navigate the complexities of real estate investing.

Schedule a consultation with Brian to learn more about investing in SFR investment properties.