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Murfreesboro vs Johnson City for Rental Property Investing

Side-by-side comparison of Murfreesboro, TN and Johnson City, TN — cap rates, rent, prices, and investment metrics.

Johnson City wins 4–3 across key metrics
Johnson City leads on cash flow (4.48% vs 3.75% cap rate) · Murfreesboro leads on population growth
Metric
Murfreesboro, TN
Johnson City, TN
Est. Cap Rate
3.75%
4.48%
Median Home Price
$340,000
$235,000
Median Monthly Rent
$1,520
$1,200
1% Rule
0.45%
0.51%
GRM
18.6x
16.3x
Price / Income
5.8x
5.5x
Property Tax Rate
0.55%
0.52%
Vacancy Rate
5%
5.4%
Population Growth
2.5% / yr
1% / yr
Annual Appreciation
3.5%
3%
Population
165,600
72,000
Median Income
$58,200
$42,800

Murfreesboro vs Johnson City: Which Is Better for Investors?

Cash flow: Johnson City has the edge with an estimated cap rate of 4.48% compared to Murfreesboro's 3.75%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $340,000 in Murfreesboro vs $235,000 in Johnson City, while rents come in at $1,520/mo and $1,200/mo respectively.

Growth & appreciation: Murfreesboro is growing faster at 2.5% annually vs Johnson City's 1%. Murfreesboro leads on home value appreciation at 3.5% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.55% in Murfreesboro vs 0.52% in Johnson City. Vacancy rates of 5% and 5.4% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Johnson City edges out Murfreesboro on most key metrics. While cap rates are moderate at 4.48%, Johnson City's overall profile is stronger. Use our free calculators to model specific deals in Murfreesboro or Johnson City.

Murfreesboro, TN
3.75% cap rate · $340,000 median · $1,520/mo
Full analysis →
Johnson City, TN
4.48% cap rate · $235,000 median · $1,200/mo
Full analysis →
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