Side-by-side comparison of Memphis, TN and Chattanooga, TN — cap rates, rent, prices, and investment metrics.
Cash flow: Memphis has the edge with an estimated cap rate of 4.42% compared to Chattanooga's 4.29%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $195,000 in Memphis vs $270,000 in Chattanooga, while rents come in at $1,180/mo and $1,340/mo respectively.
Growth & appreciation: Chattanooga is growing faster at 1% annually vs Memphis's 0.3%. Chattanooga leads on home value appreciation at 3.3% per year.
Costs & risk: Property taxes are 1.48% in Memphis vs 0.54% in Chattanooga — a significant difference that directly impacts net operating income. Vacancy rates of 7.8% and 5.4% are mixed — Chattanooga has the tighter rental market.
Bottom line: Chattanooga edges out Memphis on most key metrics. While cap rates are moderate at 4.29%, Chattanooga's overall profile is stronger. Use our free calculators to model specific deals in Memphis or Chattanooga.