Benton County

Benton County sits at a median home price of $193,538 with 9.4% year-over-year appreciation, which immediately tells you where this market lives on the spectrum: it is an appreciation play with affordability characteristics that are increasingly rare at this price point. The affordability index of 89 and a ranking of 3rd in Tennessee out of 95 counties, and 91st percentile nationally out of 1,000 counties scored, signal that entry costs remain accessible relative to income and comparable markets. The cash flow score of 0 is a clear signal that the data does not support modeling this as a yield-first purchase, at least not at current financing rates of 6.85%. Without a cap rate or rent-to-price ratio in the dataset, the honest framing is this: at $193,538, you are buying into a low-price-point market that is moving fast, not one where gross rent covers carry costs with room to spare.

The appreciation score of 81 is the number that anchors the investment thesis here. At 9.4% price growth year over year on a $193,538 base, that is roughly $18,240 in equity accretion in a single year before any debt paydown. For an investor who put $38,708 down, that appreciation alone represents a 47% unleveraged return on the equity deployed, assuming the trend holds. The stability score of 50 is the counterweight to that enthusiasm: this is not a diversified metro with multiple demand drivers smoothing volatility. Benton County has a population of 15,933, which means a relatively thin resale market and potentially lumpy rental demand. The profile suits an appreciation-oriented buyer who can hold through a slower period and is not dependent on month-one cash flow to service debt or overhead. Value-add operators who can reposition a distressed asset into the rental pool may find the price basis attractive, but they should not count on rent covering all carrying costs at stabilization without meaningful rent upside from the value-add itself.

The combined monthly tax and insurance load on a median-priced purchase runs $173, based on Tennessee's state-average effective property tax rate of 0.71% and an insurance rate of 0.36%. That note matters: 0.71% is the state-average estimate from Tax Foundation 2024 data, and actual Benton County or township-level rates may differ, so pull the county assessor's current mill rate before closing. At $173 per month for tax and insurance combined, the carry cost from those two line items is not punishing. Tennessee's property tax environment is relatively investor-friendly at this rate level, and that is a real tailwind to the cash-flow calculation even if it does not flip the overall picture from appreciation to income.

The concentration risk here is the primary underwriting concern. A population under 16,000 with no economic anchor data provided means the rental demand pool is narrow. Vacancy in a small rural county is harder to absorb than in a metro, and one large local employer adding or cutting shifts can move the needle materially. The 9.4% appreciation rate in a county this size also warrants scrutiny: price appreciation at that pace in a thin market can reflect a small number of transactions as much as a broad demand trend. Investors should review actual transaction volume before assuming the YoY figure reflects liquid, broad-based demand rather than a handful of sales at the high end.

Compared to neighboring counties, Benton's median of $193,538 is the second-lowest in the peer group, sitting just above Carroll County at $180,314. Carroll scores 63 overall versus Benton's 74, so Benton delivers a materially higher composite score for only $13,000 more in purchase price. Rhea County at $266,373 and Lincoln County at $257,281 both score 68, meaning you are paying $63,000 to $74,000 more for a lower overall score than Benton offers. Anderson County at $301,800 has rent data showing a 0.064 rent-to-price ratio and a median rent of $1,601, but scores only 62 overall and costs $108,000 more at entry. If your underwrite requires visible rent-to-price coverage and you can accept the lower overall score, Anderson is where you look. If you are basis-sensitive and are buying for appreciation over a three-to-five-year hold, Benton's combination of price, appreciation momentum, and top-three state ranking makes it the stronger entry point in this peer set, provided you stress-test the liquidity risk that comes with a county of fewer than 16,000 residents.