Dyer County

Dyer County sits at a gross rent-to-price ratio of 7.74%, which places it firmly on the cash-flow side of the spectrum for Tennessee markets. The median home price of $175,680 against median rent of $1,133 produces a 5.03% cap rate, which is respectable for a small-market county but not a home run. The model underwrite at 6.85% interest, 20% down, yields a monthly mortgage of $921, estimated expenses of $397, and a cash flow of negative $185 per month, for a cash-on-cash return of -5.49%. That negative cash flow at the model's assumed financing terms tells you this is not a buy-and-collect story out of the box; it requires either a below-list purchase, value-add lift to rents, or a more conservative debt structure. Year-over-year home price appreciation of 3.46% is real but not speculative, and the affordability index of 92 signals that prices here are not stretched relative to incomes, which supports rent demand without pricing tenants out.

The scorecard bears this out: cash flow scores 77 out of 100 and appreciation scores 81, which is a surprisingly balanced profile for a county at this price point. The 92 affordability score is the headline number. An investor who can close below the median, capture the rent-to-price ratio of 7.74%, and reduce leverage slightly will find this market tilts cash-flow positive. A value-add operator buying distressed stock, renovating to push rents from $1,133 toward $1,250 to $1,300, and refinancing into a longer-term fixed rate has the clearest path to positive carry. A pure appreciation buyer will find the 3.46% YoY growth serviceable but not compelling enough on its own to justify accepting negative cash flow at current financing costs.

The taxInsurance data reduces one common unknown. Combined monthly tax and insurance runs $157, broken down as $104 in property tax ($1,247 annualized) and $53 in insurance ($632 annualized). Tennessee's state-average effective property tax rate of 0.71% is flagged as normal, meaning it is neither a tailwind nor a material drag on the underwrite. Keep in mind this is a state-average estimate; actual county and township rates in Dyer County may differ, so pull the assessor data before closing. At $157 per month, taxes and insurance together are not the reason this deal pencils negative. The culprit is the interest rate environment: $921 in mortgage payments on a $175,680 property at 6.85% is the friction point, and any rate buydown or seller concession that moves that number matters.

The stability score of 50 is the flag worth sitting with. At a population of 36,818, Dyer County is a small, concentrated market. No economic anchors were provided in the data, so no specific employers can be cited, but the low stability score is a signal that investor due diligence on local employment concentration is warranted before committing capital. A single large employer exit or industry contraction in a county of this size can move vacancy rates in ways that don't show up in state-level statistics. Regulatory risk and demographic risk are not directly quantified in the provided data, so no specific claims can be made there, but the population base is small enough that any outmigration trend would compress both rents and exit prices simultaneously.

The neighbor comparison sharpens the case for Dyer. At an overall score of 75 and a median price of $175,680, Dyer ranks third in Tennessee out of 95 counties and 53rd nationally out of 1,000, landing in the 93rd percentile. Every comparable neighbor scores lower overall: Claiborne County at 74 with a $228,611 median, Rhea County at 68 with a $266,373 median, Lincoln County at 68 with a $257,281 median, Carroll County at 63 with a $180,314 median, and Anderson County at 62 with a $301,800 median and a rent-to-price ratio of 6.36%. That last comparison is instructive. Anderson County charges $126,000 more at the median and produces a lower gross yield at 6.36% versus Dyer's 7.74%. An investor choosing between these two markets is essentially paying a 72% premium in Anderson County for a worse rent-to-price ratio and a lower overall score. Dyer wins on entry price and yield efficiency. The investor who should choose a neighbor over Dyer is one willing to pay for the higher stability and potentially deeper tenant pools that larger markets offer, accepting lower yields in exchange.