Housing Market Analysis · 2026

Rent vs Buy in Memphis, TN

Local prices pre-filled. Adjust any input to match your situation.

Median Home Price $237,926
Median Rent $1,415/mo
Price-to-Rent Ratio 14x
YoY Price Change -0.4%
Income Needed $68K

Should you buy in Memphis?

Price-to-Rent Ratio

14x — strongly favors buying

At 14x, homes in Memphis, TN are relatively affordable compared to rents. Buyers who plan to stay 5+ years typically come out ahead.

Monthly Cost Gap

Monthly ownership costs run about $367 above median rent in Memphis, TN. This relatively tight gap makes the rent-vs-buy decision especially sensitive to how long you stay in the home.

Price Trends

Home prices in Memphis, TN declined 0.4% year-over-year, which creates potential buying opportunities but also signals some market softness worth monitoring.

Affordability

With an income threshold of $68K, Memphis, TN is among the more accessible markets for first-time buyers — though the decision still hinges on how long you plan to stay.

Interactive Calculator — Memphis Pre-filled

Values are set to Memphis, TN medians. Change anything to match your scenario.

At 10 years

Renting wins by $309

No breakeven in selected timeframe.

Home Purchase
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Rent & Growth Assumptions
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Down Payment$47,585
Closing Costs$7,138

Monthly Cost (Year 1)

Buy $1,782
Rent $1,415
Mortgage$1,241
Tax$218
Insurance$125
Maintenance$198

Wealth Over Time

Buyer Wealth $152,922
Renter Wealth $153,231
Breakeven No breakeven
YearBuyerRenterWinner
1$43K$63KRent
2$53K$72KRent
3$64K$81KRent
4$75K$90KRent
5$87K$100KRent
6$99K$110KRent
7$112K$120KRent
8$125K$131KRent
9$139K$142KRent
10$153K$153KRent

Common Questions — Renting vs Buying in Memphis

Other TN Markets to Compare

See how the rent-vs-buy math stacks up in other TN cities.