Memphis, TN vs Raleigh, NC: Real Estate Investment Comparison
Side-by-side comparison of two popular real estate investment markets. See how Memphis and Raleigh 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 Raleigh?
Raleigh is part of the Research Triangle with Durham and Chapel Hill, making it one of the most educated and fastest-growing metros in the US. Strong appreciation potential driven by tech and biotech employment.
- 1Research Triangle tech hub
- 2Major university presence
- 3Strong population and job growth
- 4Appreciation-focused market
Which Is Better For...
Cash Flow Investing
Memphis has higher cap rates (7-10% vs 4-6%), suggesting stronger cash flow potential relative to price.
Low Entry Cost
Memphis has lower median prices ($150K-$220K vs $350K-$450K), requiring less capital to get started.
Rental Income
Raleigh has higher average rents ($1,500-$2,100 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 Raleigh and get instant cap rate, cash flow, and ROI calculations.
Frequently Asked Questions
Is Memphis or Raleigh better for rental property investing?
Both cities offer opportunities. Memphis has cap rates of 7-10% with median prices of $150K-$220K, while Raleigh has cap rates of 4-6% with median prices of $350K-$450K. 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 Raleigh?
Memphis, TN has cap rates ranging from 7-10%, while Raleigh, NC has cap rates of 4-6%. 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 Raleigh?
Memphis has median home prices of $150K-$220K compared to Raleigh's $350K-$450K. Average rents are $1,000-$1,400 in Memphis and $1,500-$2,100 in Raleigh. Consider both price and rent when evaluating affordability and cash flow potential.