What do you want to calculate?
Enter all property inputs to project multi-year Total Return, IRR, and year-by-year cash flow. The standard analysis mode.
Property
Income (Year 1)
2026 typical: $2,200–$3,500/mo depending on market and unit type
Operating Expenses (Year 1, annual)
Expense entry mode
All fields are annual figures.
Tennessee avg effective rate 0.56%. Assessed at 25% of appraised value. Shelby County (Memphis) ~0.72%, Davidson County (Nashville) ~0.52%.
Tennessee TDCI average. Higher than national avg due to tornado/storm risk. Get quotes for your specific zip code and property type.
Tennessee typical 8-10% of collected rent.
Typical: 1–2% of property value annually
Only if paid by landlord
Leave blank if no HOA
Roof, HVAC, major repairs
Landscaping, pest control, etc.
Growth Assumptions
2026 conservative assumptions: rent 2–3%, expenses 2.5–3.5%. Rent growth above 4% is optimistic.
Financing
Enter 0 for owner-carry or interest-free seller financing.
Additional Cash Invested
Hold Period & Exit
Exit Method
Sale Price = Year N NOI ÷ Exit Cap Rate. Reflects market pricing at exit.
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How to Use the Tennessee Rental Property Calculator
This calculator is pre-loaded with Tennessee-specific defaults for property tax (~2% for investment property), insurance ($2,200/yr), vacancy (8%), and management fees (9%). These are statewide averages from verified sources — your actual numbers depend on the county, city, and property type.
- Enter the purchase price and financing terms. Investment loans in Tennessee typically require 20-25% down at 6.5-7.5%.
- Enter monthly rent from actual leases or comparable rents (Zillow, Apartments.com, local PM).
- Review pre-filled expenses — property tax, insurance, vacancy are set to Tennessee averages. Replace with property-specific data.
- Check results — cash flow, NOI, cap rate, DSCR update instantly.
- Run a conservative scenario — increase vacancy by 2%, reduce rent by 5%.
Every pre-filled value can be changed. Defaults are starting points, not recommendations.
Tennessee Expenses That Affect Rental Cash Flow
Property Tax (1.2%–2.8%)
Tennessee has no state income tax on wages, salaries, or rental income — a major advantage for investors. The Hall Tax on investment income was fully repealed in 2021. Property tax is assessed at 25% of appraised value with county rates applied. Shelby County (Memphis) effective rate ~0.72%, Davidson County (Nashville) ~0.52%, Knox County (Knoxville) ~0.58%. Check your county assessor for the exact rate.
Insurance ($2,200–$4,500/yr)
Tennessee insurance averages $2,200/yr, above the national average due to tornado/storm risk. Tornado and hail risk in central Tennessee can increase premiums. Properties in FEMA flood zones along the Cumberland, Tennessee, or Mississippi rivers require additional flood insurance ($400-$1,200/yr). Get 2-3 quotes for your specific property.
No State Income Tax
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 either. Your rental income and capital gains are subject only to federal taxes — a major advantage over states like California (13.3%) or New York (8.8%).
Vacancy (4%–10%)
Knoxville and Franklin run 4-6%. Chattanooga 6-8%. Rural Tennessee 8-12%. Use Census ACS data or ask a local property manager.
Example: Nashville Duplex ($285K)
| Purchase Price | $285,000 |
| Down Payment (20%) | $57,000 |
| Rate / Term | 7.0% / 30yr |
| Rent (2 × $1,050) | $2,200/mo |
| Vacancy (6.5%) | −$1,638/yr |
| Property Tax (0.56%) | −$5,700/yr |
| Insurance | −$2,500/yr |
| PM (9%) + Maintenance + CapEx | −$9,259/yr |
| NOI | $5,103/yr |
| Mortgage (P&I) | −$18,192/yr |
| Cash Flow | −$13,089/yr (−$1,091/mo) |
Result: Cash-flow negative. The 0.56% property tax ($5,700/yr) consumes most of the NOI. To break even: buy at ~$210K or raise rents to ~$2,500/mo. This is why Tennessee-specific tax rates — not national averages — are critical.
Hypothetical example for educational purposes only.
Sources and Methodology
- Tennessee Department of Taxation — property tax rates
- Tennessee Department of Insurance — insurance data
- FRED Tennessee Economic Data — vacancy, mortgage rates
- Tennessee Housing Finance Agency
- Property tax: Tennessee Comptroller, county appraisal districts
- Insurance: NAIC
- Vacancy: US Census ACS 5-Year
- Rent/values: Zillow ZORI + ZHVI
- Market stats: Tennessee Real Estate Research Center
Data period: Q1 2026. Last reviewed: July 2026. Defaults are planning assumptions — replace with property-specific data.
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FAQ
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Disclaimer: This calculator is for educational purposes only. Results are estimates based on assumptions and public data averages. Not financial, tax, legal, or investment advice. Actual performance depends on property-specific conditions. Consult licensed professionals before making investment decisions.