Tennessee cap rate data splits into two worlds: Memphis delivers 5.5\u20138.0% with $155K median entry, while Nashville sits at 3.0\u20134.5% with $380K prices. The gap is driven by Tennessee’s unique market structure \u2014 one metro optimized for cash flow, another for appreciation, and three mid-tier cities in between. Tennessee’s 0.56% property tax (lowest among investment states) and zero state income tax boost NOI across all metros. Here is what cap rates actually look like across five Tennessee cities in 2026, with worked examples and the expenses that compress or expand returns.<\/p>\n