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DSCR MARKET DATA · MEMPHIS, TN · #2 NATIONAL 2026

Memphis — Section-8 SFR DSCR With Zero State Income Tax

$145K SFR · $1,280 rent · 0.88% R/P · DSCR 1.15–1.70 across Section-8 SFR inventory · 0.7% property tax · zero state income tax.

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DSCR Market Data · Memphis, TN · #2 national

Memphis, TN DSCR Market Snapshot · 2026 Q1

0.88%

R/P ratio

Memphis MSA · all-property

1.40

Avg DSCR

Section-8 SFR · 80% LTV / 7.5%

$145K

Median SFR price

Zillow ZHVI · 2026 Q1

$1,280

Median monthly rent

Zillow ZORI · 2026 Q1

CASH-FLOW-VALIDATED ZONES

Memphis DSCR Neighborhoods That Pencil in 2026

Frayser

ZIP 38127

$70K–$115K · DSCR 1.40–1.70 · Section-8 inventory depth

Whitehaven

ZIP 38116

$95K–$155K · DSCR 1.30–1.55 · Workforce SFR · MEM airport corridor

Raleigh

ZIP 38128

$110K–$165K · DSCR 1.20–1.45 · Northeast workforce

Hickory Hill

ZIP 38115

$130K–$185K · DSCR 1.15–1.40 · Southeast suburb · stable

Berclair

ZIP 38122

$100K–$150K · DSCR 1.25–1.50 · East-midtown workforce

WHY MEMPHIS WORKS

Why Memphis for DSCR Investors

Memphis offers the deepest Section-8 inventory of any top-15 metro with a 12-month tenant wait-list backstop. Property tax 0.7% effective + zero state income tax = best after-tax cash-flow in the country. Rent growth ran 5.1% YoY through Q1 2026 — #1 nationally.

  • Zero state income tax — after-tax DSCR yield best in top-15
  • Property tax 0.7% effective — half the national average
  • Section-8 wait-list backstop via Memphis Housing Authority
  • Rent growth 5.1% YoY through Q1 2026 — #1 nationally
  • FedEx, AutoZone, International Paper, St. Jude employment anchors

Memphis Section-8 DSCR Strategy — read the full market intel →

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Soft credit pull. No income docs. No tax returns. DSCR pre-qual in 24 hours.

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Clean files close in 21-30 days · 80% LTV purchase · 75% cash-out refi

HOW MEMPHIS COMPARES

How Memphis Compares to Other Top-Tier DSCR Markets

Memphis combines the second-best R/P in the top 15 (0.88%) with the lowest property tax burden (0.7%) and zero state income tax. The structural drag is property-management intensity in Section-8 inventory — overcome by partnering with Memphis-specialist PM companies that handle vouchering, inspections, and re-leasing.

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DATA SOURCES

Where This Memphis DSCR Data Comes From

Median price + rent: Zillow ZHVI / ZORI 2026 Q1. R/P derived from ATTOM Data. Section-8 data from HUD Picture of Subsidized Households. Property tax from Shelby County assessor. Last refreshed 2026-05-16.

Market data is informational only and does not constitute a loan offer. Verify all subject-property numbers via comparative market analysis before underwriting.

FREQUENTLY ASKED

Memphis DSCR Lending Questions

Memphis is the #2 national DSCR market in 2026. R/P 0.88%, property tax 0.7%, zero state income tax, deep Section-8 inventory, and 5.1% YoY rent growth (#1 nationally). The advantage compounds — every dollar of rental income flows through to investor cash-flow with less tax drag than any other top-15 metro.

Section-8 SFR in Frayser and Whitehaven pencils DSCR 1.40–1.70 at 80% LTV / 7.5%. Workforce SFR in Raleigh and Berclair runs 1.20–1.50. Suburban SFR in Hickory Hill runs 1.15–1.40.

Yes — Frayser (38127), Whitehaven (38116), Raleigh (38128), Hickory Hill (38115), Berclair (38122). Frayser has the deepest Section-8 inventory; Whitehaven balances Section-8 + workforce tenancy near MEM airport employment cluster.

Memphis loan amounts typically $60K–$200K matched to Memphis SFR inventory. Frayser SFR sometimes falls below $75K DSCR-lender minimums — we structure with bridge-to-DSCR or portfolio loans when individual SFR loans drop below lender floor.

Memphis demands a Section-8-experienced PM company. Interview 2-3 PMs BEFORE running numbers — Section-8 vouchering, HQS inspections, and re-leasing cadence are the operational reality. Then run the DSCR calculator with Memphis tax (0.7%) and Section-8 rent comps.

Homestead Capital Partners NMLS #2587985 | NEXA Mortgage, LLC NMLS #1660690 (DBA NEXA Lending)

5559 S Sossaman Rd, Bldg #1 Ste #101, Mesa, AZ 85212 | Licensed in 48 states (excluding New York and Massachusetts) | Equal Housing Lender

DSCR loans are business-purpose investor mortgages — not consumer mortgages. Terms, rates, and product availability depend on the lender, the property, and the borrower's qualifications. Nothing on this page is a commitment to lend. Verification, not guarantee.