When it comes to profitable and sustainable turnkey rental investments, Memphis consistently ranks as one of the best cities in the United States. With its strong rental demand, affordable property prices, and investor-friendly market dynamics, Memphis offers the perfect blend of cash flow, stability, and long-term growth potential — making it a favorite among real estate investors nationwide.
In this guide, we break down exactly why Memphis stands out and how investors can benefit from this high-performing market.
1. Affordable Property Prices With Strong ROI Potential
One of the biggest reasons investors choose Memphis is its affordable real estate market. Compared to major U.S. cities, the entry cost for single-family and turnkey rentals is significantly lower, allowing investors to build larger portfolios with less capital.
Key Benefits:
- Lower acquisition costs
- Higher cash-on-cash returns
- Better rental yield compared to national averages
This affordability, paired with steady rental demand, translates into impressive ROI for both new and seasoned investors.
2. Memphis Has One of the Strongest Rental Markets in the Country
Memphis is a major hub for renters, with over 40–50% of residents choosing to rent rather than buy. This creates a consistent pool of reliable tenants that helps reduce vacancy risks.
Why Rental Demand Is So Strong:
- Growing population
- Strong local job market
- Affordable cost of living
- Large workforce within logistics, shipping, healthcare & manufacturing
This steady demand makes Memphis an excellent city for turnkey rentals that are already renovated, tenanted, and producing income.
3. Job Growth Driven by Major Industries
Memphis is home to some of the most important logistics and transportation networks in the world. In fact, it hosts one of the largest cargo airports globally thanks to FedEx’s headquarters.
Key Industries Supporting Economic Stability:
- Logistics & Transportation
- Healthcare & Biotechnology
- Manufacturing
- Education
- Tourism
With billions invested in infrastructure and commercial development, Memphis continues to grow — and that growth supports investor confidence.
4. High Cash Flow Compared to Other Markets
While many U.S. cities have shifted toward appreciation-only markets, Memphis still offers strong monthly cash flow, which is why it’s a top pick for turnkey investors.
You’ll Benefit From:
- Lower maintenance costs
- High rent-to-price ratio
- Consistent long-term tenancy
It is one of the few markets where investors can still find positive cash flow from day one.
5. Landlord-Friendly Laws
Real estate investors appreciate that Tennessee has landlord-friendly laws, making the investment process smoother and more secure.
Key Investor-Friendly Advantages:
- Faster eviction processes
- Reasonable property tax rates
- Fair lease enforcement
- Balanced tenant-landlord regulations
This regulatory environment gives investors confidence and reduces long-term risks.
6. Turnkey Market Built for Out-of-State Investors
Memphis is one of the top U.S. cities where turnkey providers work extensively with remote and out-of-state investors. This means:
- Properties are renovated
- Tenants are already placed
- A management team is already in place
- Cash flow starts immediately
For busy investors or those new to real estate, it’s a hands-off, high-yield solution.
7. Strong Long-Term Appreciation Outlook
While Memphis is primarily known for cash flow, it has shown steady and reliable appreciation over the years.
Reasons for Long-Term Growth:
- Expanding job market
- Infrastructure improvements
- Urban redevelopment projects
- Increasing demand for rentals
This combination of cash flow and appreciation makes Memphis a balanced and smart investment choice.
Final Thoughts
Memphis continues to dominate as one of the best cities in the U.S. for turnkey rental properties. With:
- Low acquisition costs
- High rental demand
- Strong cash flow
- A diverse economy
- Landlord-friendly laws
it’s no surprise investors nationwide are adding Memphis rentals to their long-term portfolios.
Whether you’re a first-time investor or growing a multi-city portfolio, Memphis offers unmatched value and long-term stability.
