Memphis, TN vs Houston, TX: Real Estate Investment Comparison
Side-by-side comparison of two popular real estate investment markets. See how Memphis and Houston stack up on price, rent, cap rate, and more.
Why Invest in Memphis?
Memphis offers some of the highest cap rates in the country with very affordable entry points. The city has a large Section 8 housing program and a strong logistics industry anchored by FedEx headquarters.
- 1No state income tax
- 2Affordable entry prices
- 3Large Section 8 market
- 4FedEx and logistics hub
Why Invest in Houston?
Houston is the energy capital of the US with a massively diversified economy including healthcare (Texas Medical Center), aerospace (NASA), and manufacturing. Affordable housing relative to other major metros.
- 1No state income tax
- 2Texas Medical Center — largest in the world
- 3NASA and energy sector employment
- 4Affordable for a top-5 US metro
Which Is Better For...
Cash Flow Investing
Memphis has higher cap rates (7-10% vs 5-8%), suggesting stronger cash flow potential relative to price.
Low Entry Cost
Memphis has lower median prices ($150K-$220K vs $250K-$340K), requiring less capital to get started.
Rental Income
Houston has higher average rents ($1,300-$1,900 vs $1,000-$1,400), generating more gross rental income.
Market Size
Memphis (630K+) is the larger market, offering more inventory and diversification.
Analyze Properties in Either Market
Search any address in Memphis or Houston and get instant cap rate, cash flow, and ROI calculations.
Frequently Asked Questions
Is Memphis or Houston better for rental property investing?
Both cities offer opportunities. Memphis has cap rates of 7-10% with median prices of $150K-$220K, while Houston has cap rates of 5-8% with median prices of $250K-$340K. The best choice depends on your investment goals — cash flow vs appreciation — and your budget. Use PropertyDNA to analyze specific properties in either market.
What are the cap rates in Memphis vs Houston?
Memphis, TN has cap rates ranging from 7-10%, while Houston, TX has cap rates of 5-8%. Higher cap rates indicate more income relative to the property price, but may come with different risk profiles.
Which city has more affordable rental properties, Memphis or Houston?
Memphis has median home prices of $150K-$220K compared to Houston's $250K-$340K. Average rents are $1,000-$1,400 in Memphis and $1,300-$1,900 in Houston. Consider both price and rent when evaluating affordability and cash flow potential.