ZIPs in Tennessee that are Better to Buy than Rent

The Top 3

#1

38127 (Memphis, TN)

Price To Rent Ratio of 8.4

#2

38108 (Memphis, TN)

Price To Rent Ratio of 8.6

#3

38141 (Memphis, TN)

Price To Rent Ratio of 8.7

About the Rankings

The Census Bureau has released the latest estimates from the American Community Survey data to estimate the price to rent ratio. We have crunched the numbers and the rankings are in. See the ZIPs in Tennessee with the lowest price to rent ratio below, and the highest price to rent ratio ZIPs. Only ZIP codes with a low margin of error are included.

The price to rent ratio is the median home value divided by the median annual rent. At its most basic level, the ratio is a benchmark for understanding whether it is better to rent or buy in an area. When home prices rise significantly faster than the local rents, the ratio will rise - indicating a possible housing bubble where it may be better to rent. Anything under 15 indicates that it is likely more affordable to buy, and areas over 20 are likely better to rent.

The Tennessee price to rent ratio from the latest estimates is 21.0 and has risen 1.6% from 20.6.

This year saw several big changes. 38127 (Memphis, TN) rose from #3 to #1, 38108 (Memphis, TN) fell from #1 to #2, 38141 (Memphis, TN) fell from #2 to #3, 38114 (Memphis, TN) rose from #7 to #4, and 38106 (Memphis, TN) fell from #4 to #5.

The Top 50

#1
38127 (Memphis, TN)
Previously #3 at 8.8
8.4
#2
38108 (Memphis, TN)
Previously #1 at 8.0
8.6
#3
38141 (Memphis, TN)
Previously #2 at 8.8
8.7
#4
38114 (Memphis, TN)
Previously #7 at 9.7
9.0
#5
38106 (Memphis, TN)
Previously #4 at 9.2
9.3
#6
38122 (Memphis, TN)
Previously #5 at 9.5
9.3
#7
38118 (Memphis, TN)
Previously #8 at 9.7
9.3
#8
38109 (Memphis, TN)
Previously #9 at 9.8
9.7
#9
37407 (Chattanooga, TN)
Previously #10 at 10.1
10.3
#10
38128 (Memphis, TN)
Previously #11 at 11.3
10.9
#11
38115 (Memphis, TN)
Previously #12 at 11.5
11.3
#12
37086 (La Vergne, TN)
Previously #13 at 12.5
12.5
#13
38133 (Memphis, TN)
Previously #14 at 13.2
12.8
#14
38134 (Memphis, TN)
Previously #17 at 13.6
13.2
#15
38111 (Memphis, TN)
Previously #23 at 14.2
13.3
#16
38125 (Memphis, TN)
Previously #15 at 13.4
13.4
#17
38107 (Memphis, TN)
Previously #20 at 13.8
13.6
#18
38018 (Cordova, TN)
Previously #16 at 13.5
13.7
#19
38116 (Memphis, TN)
Previously #22 at 14.1
13.9
#20
38135 (Memphis, TN)
Previously #21 at 13.8
13.9
#21
38016 (Cordova, TN)
Previously #24 at 14.7
14.5
#22
37214 (Nashville, TN)
Previously #25 at 14.8
14.6
#23
38301 (Jackson, TN)
Previously #28 at 15.3
14.7
#24
37042 (Clarksville, TN)
Previously #26 at 15.0
14.8
#25
37917 (Knoxville, TN)
Previously #19 at 13.8
14.8
#26
37406 (Chattanooga, TN)
Previously #27 at 15.1
15.4
#27
37412 (Chattanooga, TN)
Previously #31 at 15.8
15.5
#28
37411 (Chattanooga, TN)
Previously #33 at 16.0
15.7
#29
37217 (Nashville, TN)
Previously #30 at 15.6
15.8
#30
37013 (Antioch, TN)
Previously #35 at 16.4
15.8
#31
37912 (Knoxville, TN)
Previously #29 at 15.4
16.0
#32
38053 (Millington, TN)
Previously #36 at 16.4
16.1
#33
37921 (Knoxville, TN)
Previously #32 at 15.8
16.2
   #34
37115 (Madison, TN)
Previously 16.3
16.3
#35
38004 (Atoka, TN)
Previously unranked at 15.4
16.4
#36
38063 (Ripley, TN)
Previously #40 at 17.1
16.4
#37
37076 (Hermitage, TN)
Previously #38 at 17.0
16.9
#38
37914 (Knoxville, TN)
Previously #44 at 17.5
16.9
#39
37201 (Nashville, TN)
Previously unranked at 16.4
16.9
#40
38023 (Drummonds, TN)
Previously unranked at 19.0
17.0
#41
38119 (Memphis, TN)
Previously #43 at 17.5
17.0
#42
37128 (Murfreesboro, TN)
Previously #37 at 16.8
17.1
#43
37207 (Nashville, TN)
Previously #39 at 17.0
17.3
#44
37421 (Chattanooga, TN)
Previously #45 at 17.6
17.4
#45
38117 (Memphis, TN)
Previously #42 at 17.2
17.5
#46
38351 (Lexington, TN)
Previously unranked at 18.9
17.6
   #47
38103 (Memphis, TN)
Previously 18.1
17.6
#48
38583 (Sparta, TN)
Previously #41 at 17.1
17.9
#49
37818 (Mosheim, TN)
Previously unranked at 18.8
17.9
#50
37129 (Murfreesboro, TN)
Previously #46 at 18.1
18.0
* The maximum margin of error for ranking is 1.5

The Bottom 50

#1
37680 (Laurel Bloomery, TN)
Previously unranked at 53.6
51.2
#2
37350 (Lookout Mountain, TN)
Previously #1 at 48.6
46.9
   #3
37408 (Chattanooga, TN)
Previously 44.6
43.2
#4
37866 (Sharps Chapel, TN)
Previously unranked at 43.2
42.9
#5
38352 (Luray, TN)
Previously unranked at 40.0
39.2
#6
37215 (Nashville, TN)
Previously #10 at 37.7
38.1
#7
38066 (Rossville, TN)
Previously #4 at 41.5
37.8
#8
37774 (Loudon, TN)
Previously #6 at 41.2
37.8
   #9
37212 (Nashville, TN)
Previously 38.2
37.5
#10
37403 (Chattanooga, TN)
Previously #22 at 32.8
36.3
#11
38549 (Byrdstown, TN)
Previously #42 at 28.7
36.3
#12
37029 (Burns, TN)
Previously #21 at 33.2
35.9
#13
38488 (Taft, TN)
Previously #45 at 28.1
35.4
#14
38455 (Elkton, TN)
Previously #8 at 38.3
35.1
#15
37206 (Nashville, TN)
Previously #28 at 30.8
35.1
#16
37302 (Apison, TN)
Previously #23 at 32.5
34.9
#17
37205 (Nashville, TN)
Previously #14 at 34.0
34.6
#18
37118 (Milton, TN)
Previously unranked
34.1
#19
37204 (Nashville, TN)
Previously #16 at 33.9
34.0
#20
37348 (Kelso, TN)
Previously #13 at 34.7
33.2
#21
37306 (Belvidere, TN)
Previously #30 at 30.6
33.1
#22
38068 (Somerville, TN)
Previously #25 at 32.0
33.1
#23
37027 (Brentwood, TN)
Previously #20 at 33.4
33.0
#24
37370 (Riceville, TN)
Previously #49 at 27.8
32.8
#25
37919 (Knoxville, TN)
Previously #19 at 33.7
32.7
#26
38028 (Eads, TN)
Previously #2 at 45.0
32.5
#27
37308 (Birchwood, TN)
Previously #38 at 29.0
32.2
#28
38241 (Palmersville, TN)
Previously #7 at 39.7
32.2
#29
37860 (Russellville, TN)
Previously #18 at 33.7
32.2
#30
37375 (Sewanee, TN)
Previously #84 at 24.7
32.2
#31
37016 (Auburntown, TN)
Previously #35 at 29.5
31.8
#32
37352 (Lynchburg, TN)
Previously #12 at 34.9
31.6
#33
38574 (Monterey, TN)
Previously #58 at 26.5
31.3
#34
37419 (Chattanooga, TN)
Previously #17 at 33.7
31.3
#35
37391 (Turtletown, TN)
Previously #5 at 41.4
31.1
#36
37064 (Franklin, TN)
Previously #26 at 31.7
31.1
#37
37828 (Norris, TN)
Previously #15 at 34.0
30.9
#38
37886 (Walland, TN)
Previously #11 at 37.2
30.4
#39
37902 (Knoxville, TN)
Previously #36 at 29.2
30.3
#40
37332 (Evensville, TN)
Previously #33 at 29.9
30.3
#41
37683 (Mountain City, TN)
Previously #37 at 29.0
29.7
#42
38551 (Celina, TN)
Previously #43 at 28.4
29.4
#43
37742 (Greenback, TN)
Previously #41 at 28.7
29.2
#44
37777 (Louisville, TN)
Previously #39 at 28.9
29.2
#45
38548 (Buffalo Valley, TN)
Previously #67 at 25.8
29.1
#46
37356 (Monteagle, TN)
Previously #55 at 26.7
29.1
#47
37692 (Unicoi, TN)
Previously #127 at 23.1
29.0
#48
37737 (Friendsville, TN)
Previously #31 at 30.3
28.7
#49
37882 (Townsend, TN)
Previously #48 at 27.8
28.7
#50
37313 (Coalmont, TN)
Previously #403 at 17.5
28.5
* The maximum margin of error for ranking is 20.0


Data from the U.S. Census Bureau American Community Survey 5-year estimates for 2017.

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