Side-by-side comparison of Memphis, TN and Knoxville, TN — cap rates, rent, prices, and investment metrics.
Cash flow: Memphis has the edge with an estimated cap rate of 4.42% compared to Knoxville's 4.26%. 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 $280,000 in Knoxville, while rents come in at $1,180/mo and $1,380/mo respectively.
Growth & appreciation: Knoxville is growing faster at 1.2% annually vs Memphis's 0.3%. Knoxville leads on home value appreciation at 3.5% per year.
Costs & risk: Property taxes are 1.48% in Memphis vs 0.55% in Knoxville — a significant difference that directly impacts net operating income. Vacancy rates of 7.8% and 5.2% are mixed — Knoxville has the tighter rental market.
Bottom line: Knoxville edges out Memphis on most key metrics. While cap rates are moderate at 4.26%, Knoxville's overall profile is stronger. Use our free calculators to model specific deals in Memphis or Knoxville.