What is the rental yield in South Memphis, Memphis, Tennessee?

South Memphis, Memphis, Tennessee has a gross yield of 14.4%. That is paired with prices about 60% below the city median and 77% below the state median, plus a 31.9% decline over the past year. The Red Flag score is 56 and education is in the 5th percentile.

How does South Memphis compare to Memphis and Tennessee?

South Memphis, Memphis, Tennessee is priced about 60% below Memphis and 77% below Tennessee. Its 14.4% gross yield is much higher than the other neighborhoods listed here, but the past-year price trend is down 31.9%. The Red Flag score is 56 and walkability is 60.

What are the main strengths and risks in South Memphis, Memphis, Tennessee?

South Memphis, Memphis, Tennessee’s main strength is its 14.4% gross yield and deep price discount versus Memphis and Tennessee. The main numerical risks are the 31.9% decline over the past year, a Red Flag score of 56, and education in the 5th percentile.

Neighborhood

South Memphis

Memphis, Tennessee US

South Memphis, Memphis, Tennessee has an investment profile defined by a 14.4% gross yield, prices about 60% below the city median and 77% below the state median, and a 31.9% decline over the past year. It also shows walkability of 60, education in the 5th percentile, and a Red Flag score of 56, so the yield is the clearest strength while the steep annual price decline and low school-score percentile are the main numerical risks.

AI Summary•Updated June 2026

Area

13.19 mi²

ZIP Code

38106

County

Shelby County

State

Tennessee

Redfin — median sale & volumeZillow ZORI — asking rentFEMA National Risk Index v1.20OpenStreetMap — POIFBI UCR — state crimeEPA — radon zonesWashU ACAG — satellite PM2.5EPA FRS / BTS — hazard screeningUS Census ACS / TIGER 2024

Verified Price · Median Sale

$77,477

YoY-31.9%

Gross Rental Yield

13.4%

Listed rent · ZORI annualized

Red Flag Index

Moderate

56 / 100

Walkability Score

Somewhat Walkable

OpenStreetMap POI density · national percentile

Education Score

5 / 100

Limited · better than 5% of U.S. districts

Pre-pandemic SEDA (2018/19) · district proxy

AI Score

Fair

DistrictScore attractiveness · national model

South Memphis Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for South Memphis, Memphis.

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Market Economics Snapshot

Jun 2026

Metric	Value	YoY
Median Sale Price	$77,477	-31.9%
Price / Sq Ft (Verified)	$50/sqft	+7.6%
Asking Rent (Median)	$874/mo	-5.9%
Gross Rental Yield	13.4%	—
Liquidity Score	15 / 100	Low
Homes Sold (Period)	22	-43.6%

Is South Memphis Safe? Natural-Hazard Risk

FEMA National Risk Index composite across eight hazards, plus inherited Tennessee crime context.

Red Flag Breakdown

56 / 100

Moderate Risk

Composite is weighted by expected impact — frequent low-damage hazards (hail, wind) weigh less than flood or wildfire.

Earthquake100Very High

Heat100Very High

Tornado80Very High

Flood40Moderate

Wildfire40Moderate

Hurricane40Moderate

Strong Wind40Moderate

Hail20Low

8/8 hazards scored · FEMA NRI v1.20

Crime (state-level): Tennessee averaged 26.2 crimes and 5.9 violent per 1,000 residents (-11.8% YoY) in 2024(FBI UCR). Compare the state to the country, not states as a ranking — full Safety & Crime data lives on the state page.

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What Stands Out AI Insight

Above-average gross rental yield at 13.4%

Earthquake risk is Very High (100/100)

Heat risk is Very High (100/100)

Insights are generated from South Memphis's live DistrictScore metrics.

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South Memphis Environment & Safety

Satellite PM2.5 air-quality history, FBI UCR crime trend (Tennessee-level, the finest official aggregation), EPA radon potential and point-source hazard screening.

Air Quality — PM2.5

2015–2024

6.0 µg/m³ Meets EPA, above WHO guideline-0.9% since 2015

EPA 9WHO 5

20152024

Annual mean fine-particle (PM2.5) concentration at the South Memphis centroid, satellite-derived (ACAG). References: WHO guideline 5 µg/m³ · EPA annual standard 9 µg/m³. Latest year ranks worse than 50% of U.S. neighborhoods.

Tennessee Crime Trend

FBI UCR

20132024

All crimes / 1k

Violent / 1k

Year	Crimes / 1k	Violent / 1k	YoY
2024	26.2	5.9	-11.8%
2023	30.1	6.4	+2.8%
2022	29.7	6.4	+2.6%
2021	29.3	6.7	-6.4%
2020	31.7	6.7	-2.1%
2019	32.6	6.0	—

Reported at the state level — the finest official US crime aggregation; South Memphis inherits the Tennessee figures.

Radon Potential

EPA

Zone 3

Zone 3 — Lowest potential · South Memphis

EPA radon zones estimate indoor radon potential county-wide (Zone 1 highest, Zone 3 lowest). Testing is recommended in all zones.

Environmental Hazards

EPA / BTS

Superfund (NPL)0.0 kmVery High

Industrial odor14 nearbyVery High

Point-source screening near South Memphis: EPA Superfund National Priorities List & Facility Registry (2026), BTS aviation noise (2020, 24-hour average level). Superfund shows distance to the nearest listed site; odor shows detected sources within the screening radius. Only detected sources are listed; the bar shows severity vs. all U.S. neighborhoods.

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Walkability & Amenities in South Memphis

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

60

Somewhat Walkable

Walkability Score

0

Grocery

1

Dining

37

Schools

1

Universities

0

Hospitals

0

Pharmacies

14

Parks

0

Rail Transit

0

Coworking

POI counts are amenities within South Memphis's boundary plus a 400 m walk buffer. Rail transit excludes bus stops.

South Memphis vs Memphis vs Tennessee

How South Memphis benchmarks against its city and state medians.

Benchmark vs City & State

In South Memphis, the median sale price sits about 60% below the median for Memphis neighborhoods and about 77% below the statewide median. Gross rental yield is 13.4%, against 8.0% for Memphis neighborhoods and 4.8% statewide. Over the past 12 months, prices fell 31.9%. Transaction liquidity sits below the median for Memphis neighborhoods and below the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
South Memphis	$50/sqft	13.4%	15
Memphis	$125/sqft	8.0%	26
Tennessee	$213/sqft	4.8%	40

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Buying Property in the US as a Foreigner

Federal & Tennessee tax facts for non-resident buyers, plus the latest local market news.

Buying as a Foreigner

US Tax & Ownership

Applies to everyone7

Capital Gains (Federal)

Long-term capital gains taxed federally at 0/15/20%, plus a 3.8% Net Investment Income Tax on higher incomes (2026).

Property Tax

Property tax: ~0.46% average effective rate (statewide average; set and collected locally).

State Income Tax

No state income tax — rental income is not taxed at the state level.

State Capital Gains

No state capital gains tax.

Transfer Tax

Real estate transfer tax: 0.37%.

Assessment Cap

No Proposition 13-style assessment cap; property is reassessed at market value.

Mansion Tax / Rent Control

No statewide mansion tax or statewide rent control.

US citizens & tax residents6

Primary-Home Exclusion

Selling your main home: exclude up to $250k of gain (single) / $500k (married) if you owned and lived there 2 of the last 5 years.

1031 Like-Kind Exchange

A 1031 like-kind exchange defers capital gains tax on investment property; 45 days to identify, 180 to close. Real estate only.

Depreciation Recapture

Residential rentals depreciate over 27.5 years; on sale, recaptured depreciation is taxed up to 25% (Section 1250).

Mortgage Interest Deduction

Mortgage interest is deductible on up to $750k of home debt. The SALT cap rose to $40,000 for 2025-2029 (reverts to $10k in 2030).

Opportunity Zones

Opportunity Zones are now permanent (2025): reinvested capital gains get deferral plus a basis step-up, and are tax-free after 10 years.

Rental Income (Resident)

Rental income is reported on Schedule E; passive-loss rules (Section 469) limit deducting rental losses against other income.

Foreign buyers (non-residents)5

FIRPTA (Foreign Sellers)

FIRPTA: the buyer withholds 15% of the gross sale price when a nonresident sells US property. It is an advance deposit, not the final tax.

Non-Resident Capital Gains

Nonresident sellers pay US capital gains tax (generally 15-20%) on the net gain via Form 1040-NR; FIRPTA withholding is credited.

Non-Resident Rental Tax

Nonresident rental income is taxed at 30% of gross by default, or on net income at graduated rates via a Section 871(d) election (W-8ECI).

Estate Tax (Non-Resident)

Nonresidents get only a $60,000 US estate-tax exemption (vs $13.99M for residents); US property above it is taxed up to 40%. Treaties may help.

ITIN Requirement

Nonresidents without an SSN need an ITIN (Form W-7) to file US tax returns, claim FIRPTA refunds, and report rental income.

Talk to a US real-estate tax advisor

FIRPTA, ITIN & Tennessee property-tax guidance for foreign buyers

Latest Memphis Real-Estate News

New Fed chairman may leave mortgage rates mostly unchanged

Guaranteed Rate • Jun 18, 2026

Household real estate wealth hits record $48.7 trillion

Eye On Housing • Jun 18, 2026

U.S. commercial property prices hit record as deal patterns shift

Altus Group • Jun 18, 2026

South Memphis Real Estate FAQ

South Memphis, Memphis, Tennessee has a high-yield but higher-risk profile. Gross yield is 14.4%, prices are about 60% below the city median and 77% below the state median, and values declined 31.9% over the past year. The Red Flag score is 56, with walkability of 60.

Neighborhoods near South Memphis

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