Choose Your Tennessee Calculator
Select a tool pre-loaded with Tennessee-specific tax rates, insurance averages, and market data.
Tennessee-Specific
Tennessee Rental Property Calculator
FeaturedCash flow, CoC return, cap rate, and NOI — pre-loaded with 0.56% property tax, $2,200 insurance, and metro vacancy defaults.
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Tennessee Closing Costs Calculator
Transfer Tax $0.37/$100Buyer and seller closing costs with Tennessee-specific line items: transfer tax ($0.37/$100), title insurance, survey fee, and escrow reserves.
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Tennessee-Specific Calculators
Tennessee Cap Rate
TN insurance, tax, vacancy pre-filled
Tennessee DSCR
TN defaults for DSCR lending
Tennessee BRRRR
TN tax, insurance, closing costs
Fix & Flip
Rehab profit and ROI
Cash Flow
Monthly and annual cash flow
Mortgage
P&I, amortization schedule
Cash-on-Cash
Levered return on equity
NOI
Net operating income
Tennessee Underwriting Factors
Key state-level inputs that affect every Tennessee investment property analysis.
Property Tax Rate
0.56% avg
Effective statewide average — one of the lowest in the US. Tennessee assesses residential property at 25% of appraised value, then applies county tax rates. Actual rates vary by county. Reappraisal cycles every 4-6 years.
Homeowner's Insurance
$2,200/yr avg
Above the national average due to tornado and severe storm risk. Range: $1,500–$3,500/yr. Middle Tennessee has the highest tornado risk. Budget flood insurance at $500–$1,500/yr in FEMA zones along the Cumberland and Tennessee Rivers.
State Income Tax
0% (none)
Tennessee has no state income tax on wages, salaries, or rental income. The Hall Tax on investment income was fully repealed in 2021. No county income taxes. Capital gains from real estate are not taxed at the state level — a major advantage for investors.
Vacancy Rate
6.5% avg
Statewide average. Nashville runs 5–6%; Memphis 8–10% in some neighborhoods; Knoxville 5–7%; Chattanooga 6%. Varies significantly by neighborhood and property class. Use metro-specific data when available.
Property Management
8–10%
Long-term rental management typically 8–10% of collected rent. STR management runs 20–30% of gross revenue due to Nashville's strong tourism market. Lease-up fee typically 50–100% of one month's rent.
Closing Costs & Transfer Tax
2–4% buyer
Buyer pays 2–4% of purchase price; seller pays 8–10% (commission + transfer tax). Tennessee has a transfer tax of $0.37 per $100 of purchase price. Property tax relief for seniors (65+) and disabled veterans applies only to owner-occupied primary residences — not available for investment property.
Tennessee Market Snapshot
Statewide aggregate data — not a guarantee of performance in any individual market.
Median Sale Price
$280K
+3% YoY
Median Rent
$1,450
+3.5% YoY
Days on Market
22
median
Inventory
2.8mo
supply
Population Growth
+0.75%
annual
Data Period
Full-year 2025 / Q2 2026
last reviewed
Source: Tennessee REALTORS, RentCafe, Zillow Research, FRED. Data period: Full-year 2025 / Q2 2026. Last reviewed: 2026-08. Figures represent statewide aggregates and may differ materially from local conditions.
Major Tennessee Markets
Metro-level data for underwriting. Each market has distinct tax rates, insurance costs, and vacancy profiles.
Memphis
Shelby County
Median Price
$155K
+2.5% YoY
Median Rent
$1,200
+3% YoY
Prop. Tax
0.72%
effective
Largest city in Tennessee by population. Very affordable entry prices with strong rent-to-price ratios — popular with out-of-state investors. Higher vacancy and property crime in some neighborhoods. Shelby County has higher effective tax rates. FedEx headquarters provides economic anchor. Strong cash flow market but lower appreciation than Nashville.
Nashville
Davidson County
Median Price
$380K
+4.5% YoY
Median Rent
$2,100
+4% YoY
Prop. Tax
0.52%
effective
State capital and fastest-growing major city in Tennessee. Strong appreciation market driven by healthcare, music industry, tech, and tourism. Higher entry prices but strong rent growth. Davidson County. Significant STR market — Airbnb regulations tightened in recent years. Suburban areas (Murfreesboro, Franklin, Hendersonville) offer more affordable entry.
Chattanooga
Hamilton County
Median Price
$250K
+3.5% YoY
Median Rent
$1,500
+3.5% YoY
Prop. Tax
0.55%
effective
Mid-size city with strong quality of life and growing tech sector. Known for municipal fiber internet (EPB). Outdoor recreation drives tourism. Hamilton County. More affordable than Nashville with solid fundamentals. Revitalized downtown and North Shore neighborhoods attract young professionals.
Knoxville
Knox County
Median Price
$270K
+3.8% YoY
Median Rent
$1,600
+3.5% YoY
Prop. Tax
0.58%
effective
Home to University of Tennessee. College town dynamics with strong rental demand from students and faculty. Knox County. Gateway to Great Smoky Mountains — some STR potential in surrounding areas. Healthcare and energy sectors (TVA, Oak Ridge) provide stable employment base.
How to Analyze a Tennessee Deal: 7 Steps
A repeatable underwriting framework using ArvCalc tools, with Tennessee-specific inputs at each step.
Verify the county property tax rate
Look up the combined rate on the county assessor website. Tennessee assesses residential property at 25% of appraised value, then applies county rates. Effective rates vary significantly by county. Enter the exact rate in the Tennessee Rental Property Calculator.
Get an insurance quote — don't use national averages
Tennessee insurance is above the national average due to tornado and severe storm risk, especially in Middle Tennessee. Get a real quote for the specific zip code and structure. Check whether the property is in a FEMA flood zone along the Cumberland, Tennessee, or Mississippi Rivers. The Tennessee Rental Property Calculator defaults to $2,200/yr but accepts your actual quote.
Estimate gross rent from local comparables
Use Zillow, Rentometer, or local property management companies. Do not rely on statewide medians for individual deal underwriting. Apply the metro vacancy default or use actual historical data for the sub-market. The NOI Calculator can help you model different rent assumptions.
Calculate NOI and cap rate
With gross rent, vacancy, taxes, insurance, and management in hand, run the Tennessee Cap Rate Calculator to get the unlevered yield. Compare against comparable sales to assess whether the asking price is supported by income. In Tennessee, cap rates on SFR typically run 4.0–8.0% — Memphis at the high end, Nashville at the low end.
Model financing with DSCR
Most Tennessee investment property lenders require a minimum DSCR of 1.20–1.25. Run the Tennessee DSCR Calculator to check whether the deal qualifies for DSCR lending and to find the maximum supportable loan amount at your target rate and NOI.
Estimate total acquisition cost including closing costs
Tennessee has a transfer tax of $0.37 per $100, and buyer closing costs of 2–4% are material. Use the Tennessee Closing Costs Calculator to itemize lender fees, appraisal, inspection, title insurance, transfer tax, survey, recording, and escrow reserves. Include these in your total equity required for cash-on-cash return calculation.
Run the full cash flow analysis
Combine all inputs in the Tennessee Rental Property Calculator to get monthly and annual cash flow, cash-on-cash return, and total ROI projection. Model multiple scenarios — conservative, base, and optimistic — before committing to an offer price.
Free Expert Analysis
Have a Tennessee deal you want to discuss?
Our investment analysts can review your underwriting assumptions, flag Tennessee-specific risks, and help you stress-test your numbers before you make an offer.
From the Blog
Frequently Asked Questions
Common questions about using these calculators for Tennessee investment properties.
Open the Tennessee Rental Property Calculator and update the property tax rate field with the combined rate for your specific county — available from the county assessor website. The calculator defaults to the 0.56% statewide average. Tennessee assesses residential property at 25% of appraised value, then applies county tax rates. Also update the insurance field with a real quote for the zip code and property type.
Sources and Methodology
Primary Sources
- Tax Foundation (taxfoundation.org)
- Tennessee Department of Commerce & Insurance (tn.gov/commerce)
- Tennessee REALTORS (tnrealtors.com)
- Federal Reserve FRED (fred.stlouisfed.org)
- US Census Bureau ACS/CPS/HVS
- Zillow Research (zillow.com/research)
- RentCafe (rentcafe.com)
- Redfin (redfin.com)
Methodology Notes
- Property tax rates are effective rates (taxes paid / assessed value), averaged across counties. Actual combined rates should be verified at the county assessor.
- Insurance averages from NAIC state-level data. Individual premiums vary by construction type, age, roof condition, flood zone, and coverage limits.
- Market price and rent data from Zillow Research (ZHVI and ZORI indexes). Metro figures are for the full MSA boundary.
- Data reviewed 2026-08-26. Update frequency: quarterly.
All figures are estimates for educational purposes. Market conditions change rapidly. Verify all inputs with local professionals before making investment decisions.
Financial Disclaimer
The calculators, data, and content on this page are provided for educational and informational purposes only. They do not constitute financial, tax, legal, lending, valuation, or investment advice. Real estate investment involves substantial risk, including the risk of loss of principal. Market data is estimated from third-party sources and may not reflect current or future conditions in any specific property, sub-market, or investment scenario.
Always consult a licensed real estate professional, CPA, attorney, and lender before making investment decisions. Property tax rates, insurance costs, rent levels, and market conditions can differ significantly from the statewide averages presented here. ArvCalc is not a licensed real estate broker, investment advisor, or insurance agent.