Factor in financing to see your actual return on invested capital in Shelbyville.
$
$81,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.33%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$91,000
$81,250 down + $9,750 closing
Monthly Mortgage
$1,589
on $244K loan
Monthly Cash Flow
$-632
after all expenses
Annual Cash Flow
$-7,585
before taxes
Cash Flow Breakdown
Monthly Rent$1,650
Less Expenses−$693
Less Mortgage−$1,589
Monthly Cash Flow$-632
Is Shelbyville a Good Place to Invest in Rental Property?
Shelbyville, TN has a population of 50,000 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $325,000 paired with median rents of $1,650/mo produces an estimated cap rate of 4.30%.
Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.7% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.0x, homes cost about 6.0 times the local median income of $53,744. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Shelbyville presents moderate opportunities. Cap rates near 4.30% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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