Thinking of buying an investment property in Tennessee? With affordable home prices, strong rents, and landlord-friendly laws, this is one of the best places to buy a rental property. In this article, we’ll show you how to buy Tennessee investment properties and the best markets for investors!
Summary:
Browse cash-flowing Tennessee investment properties!
Below are some of our past Tennessee investment properties and their projected returns. This will give you an idea of what you might expect when buying a Tennessee turnkey rental. We have new inventory every day, so check out our turnkey rental properties for sale page!
This four-bedroom Memphis home is very affordable and is projected to cash flow $759 a month! Here are the details:
With a purchase price of just $189,000, this comes in at a very affordable price point for many investors. You might expect a rental property in this price range to require immediate maintenance or repairs, but this is a new construction home!
There aren’t many investments that can give you a 24% return on investment in year one, but with cash flow and depreciation, it’s possible!
This property is projected to rent for $1,850 based on the market and local rent prices. That’s nearly a 1.0% rent-to-price ratio!
This new build comes with property management already in place, and it’s completely free in year one!
This recently renovated Memphis home was listed for only $155,000 and is projected to deliver 18% returns in year one! Here’s some more information about the property:
This rental property should rent for $1,395 and is projected to cash flow $434 per month! That’s much more than you’ll get in many other markets.
Recently renovated, this property features brand-new floors and an updated kitchen and bathroom!
Think you need a massive bank account to invest in real estate? All in, this property required less than $40,000!
This three-bedroom home comes with property management in place, and it’s free in year one!
Schedule a free consultation with the turnkey rental property experts!
Why should you buy an investment property in Tennessee? Here are a few reasons why investors prefer investing here:
Tennessee's average home price is around $334,000, below the national average home price of $368,000. Meanwhile, Tennessee rents average around $1,950 a month, giving investors a strong 0.5%+ rent-to-price ratio.
Home price and rent averages as of May 2026.
The combination of affordable home prices and competitive rents makes it easier for rental properties to cash flow.
Tennessee is considered a relatively landlord-friendly state, thanks to no rent control, no security deposit limits, and other favorable landlord-tenant laws. This gives you more control over your rental property!
Between Memphis, Chattanooga, and Nashville, there are multiple markets for all types of investment strategies. Whether you’re investing for cash flow, appreciation, or a mix of both, just be sure to do your research!
Tennessee’s unemployment rate is just 3.6% (as of April 2026), which is below the national average of 4.3%. Greater job stability gives you a larger pool of qualified renters and can lower your vacancy rate!
If this is your first rental property, or your first investment property in Tennessee, consider buying a turnkey rental:
Turnkey properties are newly built or renovated, which means they often require less maintenance than older rental properties. This makes them easier to manage and allows you to keep more cash flow.
Rent to Retirement’s turnkey rentals come with property management already in place. With a professional handling tasks like communicating with tenants and collecting rent, you’ll make more “passive” income!
With less maintenance and professional management in place, turnkey rentals are often more hands-off than other rental properties. This allows you to invest remotely in top markets across the U.S. while living in another town or state!
Rent to Retirement has been operating in Tennessee for years. We have a wealth of expertise and resources in several top Tennessee investing markets.
Before you start making offers on rental properties, you’ll want to pin down your market. Here are a few of the best Tennessee markets to invest in:
While the city’s population has declined in recent years, the Memphis metro area, as a whole, continues to grow—a fact that goes overlooked by many real estate investors. 2026 is expected to be a high-growth year for the Memphis economy and job market, according to the Greater Memphis Chamber. With an average home price of approximately $147,000, Memphis is one of the most affordable metro areas to invest in!
Home price and rent averages as of May 2026.
The Nashville metro area exhibits strong population growth and has one of the nation’s lowest unemployment rates at 2.8% (as of March 2026). Nashville is also renowned for its booming healthcare and music industries. Nashville companies operate more than half of the privately-owned hospital beds in the U.S., and “Music City” has the country’s highest concentration of music establishments.
Browse Tennessee turnkey rental properties for sale!
Knoxville is famously home to the University of Tennessee and its NCAA Division I sports program, but it’s become much more than just a college town. Like Nashville, Knoxville boasts strong population growth and a very low unemployment rate of only 2.8%. It’s predicted to have the highest in-to-out move ratio of any U.S. city in 2026, which could lead to even more rental demand!
While not quite as low as Nashville and Knoxville, Chattanooga’s unemployment rate is only 3.2%, and the area is growing twice as fast as the U.S. average. Dubbed “Gig City” for its fiber internet, Chattanooga pulls in high-paid tech remote workers from around the country. Meanwhile, it remains a relatively affordable place to invest, with an average home price of roughly $322,000.
Home price and rent averages as of May 2026.
Located just 45 minutes outside Nashville, Clarksville is emerging as an affordable housing option for commuters. Its population is growing at a rate of 2.39%, the fastest of any market on this list, and the city expects an influx of tech and trade jobs in 2026. Clarksville also has an unemployment rate of 3.9%, which sits comfortably below the U.S. average.
What’s the process like for buying investment properties in Tennessee? Follow these six steps:
First, connect with a top-rated turnkey provider with properties (and experience) in Tennessee—like Rent to Retirement. We have a perfect five-star rating across 320+ BiggerPockets reviews and an A+ rating on the Better Business Bureau (BBB)!
Ratings as of May 2026.
Some cities and towns are better investing markets than others, so it’s crucial to do your own market research. Check out our turnkey rental properties for sale in some of the top Tennessee markets!
A pre-approval letter shows sellers you’re serious about buying. Rent to Retirement works with nationwide lenders to get you the right loan product at a great rate! In fact, Rent to Retirement offers 5%-down financing on select new builds, another great way to get in the game!
Once you find a few properties you’d be interested in buying, run the numbers in minutes using our free rental property calculator. If you like the cash flow and ROI, make an offer!
If your offer’s accepted, do your due diligence! Schedule your inspection, line up your insurance, and make sure you’re on track to close with your lender.
Many turnkey rentals already have tenants in place when you close, allowing you to cash flow from day one. Now, save for your next property—this is how to build long-term wealth with real estate!
Whether you’re buying your first rental property or looking to scale your real estate portfolio, Tennessee could be a great place to own real estate. However, if you don’t live in Tennessee, investing out of state can feel overwhelming. That’s where Rent to Retirement comes in. With turnkey rentals in several top Tennessee markets and property management in place on day one, we make it easier for you to invest in cash-flowing real estate from afar!
Tennessee can be a great place to invest in real estate, especially if you’re looking for affordable rental properties that can cash flow. Just be sure to do your own market research, as prices, cash flow, and market conditions can vary from one town to the next!
There are many “rental markets” in Tennessee, so it’s important to research specific towns, suburbs, and neighborhoods before you invest. Overall, Tennessee is a landlord-friendly state with many growing markets, affordable home prices, and strong rental demand!
One of the best ways to invest in Tennessee investment properties from out of state is to purchase turnkey rentals. These properties have either been newly built or renovated, so they require less upkeep than many older rental properties. Plus, they often come with property management in place, allowing you to invest from anywhere!