Best Places to Buy Rental Property in Tennessee (2026)
We ranked all 48 Tennessee counties that have both a median home price and a median rent, ordered by the cap rate a median-priced rental would produce. Gibson County leads at 5.7%, with a median price of $184,340.
Tennessee counties ranked by cap rate
| # | Market | Cap rate | Median price | Median rent | Cash flow | Analyze |
|---|---|---|---|---|---|---|
| 1 | Gibson County, TN | 5.7% | $184,340 | $1,337 | -$97 | Run numbers |
| 2 | Shelby County, TN | 4.9% | $222,012 | $1,389 | -$261 | Run numbers |
| 3 | Madison County, TN | 4.9% | $232,813 | $1,457 | -$273 | Run numbers |
| 4 | Tipton County, TN | 4.8% | $277,528 | $1,707 | -$345 | Run numbers |
| 5 | Obion County, TN | 4.7% | $168,303 | $1,021 | -$219 | Run numbers |
| 6 | Hawkins County, TN | 4.5% | $253,647 | $1,459 | -$382 | Run numbers |
| 7 | Claiborne County, TN | 4.5% | $232,156 | $1,325 | -$356 | Run numbers |
| 8 | Fayette County, TN | 4.4% | $377,429 | $2,109 | -$607 | Run numbers |
| 9 | Hamblen County, TN | 4.1% | $279,912 | $1,471 | -$511 | Run numbers |
| 10 | Haywood County, TN | 4.1% | $175,946 | $922 | -$323 | Run numbers |
| 11 | Anderson County, TN | 4.0% | $320,269 | $1,644 | -$610 | Run numbers |
| 12 | Sullivan County, TN | 4.0% | $264,209 | $1,343 | -$512 | Run numbers |
| 13 | Marshall County, TN | 3.9% | $334,014 | $1,672 | -$664 | Run numbers |
| 14 | Washington County, TN | 3.9% | $313,131 | $1,547 | -$636 | Run numbers |
| 15 | Putnam County, TN | 3.8% | $319,411 | $1,564 | -$658 | Run numbers |
| 16 | Coffee County, TN | 3.8% | $315,061 | $1,528 | -$659 | Run numbers |
| 17 | Carter County, TN | 3.7% | $244,223 | $1,164 | -$524 | Run numbers |
| 18 | Monroe County, TN | 3.7% | $295,772 | $1,402 | -$639 | Run numbers |
| 19 | Cumberland County, TN | 3.7% | $313,868 | $1,484 | -$681 | Run numbers |
| 20 | Bedford County, TN | 3.7% | $334,939 | $1,576 | -$732 | Run numbers |
| 21 | Blount County, TN | 3.6% | $399,196 | $1,868 | -$879 | Run numbers |
| 22 | Dickson County, TN | 3.6% | $366,270 | $1,716 | -$805 | Run numbers |
| 23 | Weakley County, TN | 3.6% | $198,771 | $923 | -$442 | Run numbers |
| 24 | Knox County, TN | 3.6% | $383,827 | $1,768 | -$863 | Run numbers |
| 25 | Jefferson County, TN | 3.6% | $339,674 | $1,558 | -$768 | Run numbers |
| 26 | Unicoi County, TN | 3.6% | $251,230 | $1,148 | -$571 | Run numbers |
| 27 | Greene County, TN | 3.5% | $255,642 | $1,163 | -$584 | Run numbers |
| 28 | Roane County, TN | 3.5% | $304,134 | $1,363 | -$709 | Run numbers |
| 29 | Robertson County, TN | 3.5% | $374,362 | $1,661 | -$883 | Run numbers |
| 30 | Bradley County, TN | 3.5% | $324,582 | $1,436 | -$768 | Run numbers |
| 31 | Hamilton County, TN | 3.3% | $357,820 | $1,528 | -$883 | Run numbers |
| 32 | Montgomery County, TN | 3.3% | $322,951 | $1,375 | -$799 | Run numbers |
| 33 | Davidson County, TN | 3.3% | $435,040 | $1,824 | -$1,095 | Run numbers |
| 34 | McMinn County, TN | 3.3% | $265,699 | $1,115 | -$668 | Run numbers |
| 35 | Dyer County, TN | 3.3% | $177,378 | $740 | -$449 | Run numbers |
| 36 | Maury County, TN | 3.2% | $405,891 | $1,688 | -$1,030 | Run numbers |
| 37 | Sevier County, TN | 3.2% | $409,649 | $1,698 | -$1,043 | Run numbers |
| 38 | Cheatham County, TN | 3.2% | $400,315 | $1,653 | -$1,024 | Run numbers |
| 39 | Rutherford County, TN | 3.2% | $420,064 | $1,724 | -$1,082 | Run numbers |
| 40 | Sequatchie County, TN | 3.2% | $292,782 | $1,200 | -$755 | Run numbers |
| 41 | Warren County, TN | 3.1% | $261,806 | $1,051 | -$689 | Run numbers |
| 42 | Loudon County, TN | 3.0% | $454,770 | $1,777 | -$1,229 | Run numbers |
| 43 | Henry County, TN | 3.0% | $223,683 | $850 | -$620 | Run numbers |
| 44 | Franklin County, TN | 2.9% | $323,497 | $1,208 | -$910 | Run numbers |
| 45 | Sumner County, TN | 2.9% | $448,105 | $1,669 | -$1,264 | Run numbers |
| 46 | Wilson County, TN | 2.9% | $507,797 | $1,880 | -$1,440 | Run numbers |
| 47 | Rhea County, TN | 2.8% | $268,330 | $975 | -$773 | Run numbers |
| 48 | Williamson County, TN | 1.8% | $931,035 | $2,177 | -$3,465 | Run numbers |
Looking for every county in the state, including those without rent data? Browse the full Tennessee market directory.
How this ranking is calculated
We scored 48 counties in Tennessee and ranked them by capitalization rate, calculated as annual net operating income divided by median home price. Counties without both a median home price and a median rent are excluded, because cash flow cannot be estimated without both.
Every figure assumes a median-priced home rented at the local median rent, financed with 20 percent down on a 30-year loan at 6.85%, with closing costs at 3 percent of price and operating costs at 35 percent of rent. Operating costs cover taxes, insurance, maintenance, vacancy, and management.
These are modeled estimates for comparing markets, not quotes on a specific property. A real deal turns on the individual property, its condition, and the actual rent it can command. Run any market that interests you through the calculator with real numbers before you make an offer.
National rankings
Compare Tennessee against the rest of the country.
Best Cash Flow Markets for Rental Property
US counties ranked by estimated monthly cash flow on a median-priced rental, after mortgage and operating costs.
Highest Cap Rate Markets for Rental Property
US counties ranked by estimated cap rate on a median-priced rental, using local median rent and a 35 percent operating cost assumption.
Best Cash-on-Cash Return Markets for Rental Property
US counties ranked by estimated first-year cash-on-cash return on a median-priced rental with 20 percent down.
Best Rental Markets Under $200,000
US counties with a median home price under $200,000, ranked by estimated cap rate on a median-priced rental.
Cheapest Markets With Positive Cash Flow
The lowest-priced US counties where a median-priced rental still covers its mortgage and operating costs.
Best Appreciation Markets for Real Estate Investors
US counties ranked by appreciation score, blending recent home price growth with the risk of an overheated market.
Best Overall Real Estate Markets to Invest In
US counties ranked by overall investment score, blending cash flow, appreciation, stability, and affordability.
Other states
States with fewer than 5 counties reporting both price and rent are omitted, because a ranking that short would not be meaningful.
Run the numbers on a Tennessee property
Start from Gibson County median values and replace them with a real listing price and rent to see whether the deal actually works.