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Tennessee Cap Rate Calculator

Calculate cap rates using Tennessee market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Tennessee averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(Tennessee defaults)

Total Annual Expenses$11,151

Tennessee Market Context

Avg Cap Rate

5.8%

Median Price

$380K

Property Tax

0.46%

Vacancy Rate

8.2%

Local Factors

  • -No state income tax on wages makes it attractive for renters and investors
  • -Nashville is a top migration destination with strong job growth but rising prices
  • -Memphis offers high cash-flow potential but requires active management

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

1.9%

Low
Net Operating Income$7,161
Gross Income$18,312
Total Expenses$11,151
Tennessee Avg Cap Rate5.8%
CAP RATE1.9%
NOI$7,161
Property Tax$1,748
Insurance$2,636
Maintenance$3,800
Management$1,465
Vacancy$1,502

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Tennessee rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

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NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

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Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

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