Smith County

Smith County, Tennessee sits at a median home price of $312,865, up 2.94% year-over-year, with an affordability index of 63 out of 100. The data does not include a median rent figure or cap rate for Smith County itself, which means the cash-flow score comes in at zero and no gross yield can be calculated from the provided numbers. What the data does show clearly is where this market lives on the spectrum: an appreciation score of 79, a cash-flow score of 0, and an overall score of 66 that lands Smith County in the 70th percentile nationally and 14th out of 95 Tennessee counties. This is not a market where you underwrite to day-one cash flow. It is a market where the thesis is price appreciation, and the 79 appreciation score is the number doing the work.

That profile suits one type of buyer: the appreciation-oriented investor who is willing to carry a property at breakeven or slight negative cash flow in exchange for price-growth exposure. The 2.94% year-over-year gain is not dramatic in isolation, but paired with that appreciation score it signals that the market has been consistently moving. A value-add operator needs rent data to size the upside, and that data is not available here, so underwriting a renovation spread is speculative without additional market research. A pure cash-flow buyer should look elsewhere, full stop, because the combination of a $312,865 median price and a zero cash-flow score tells you the numbers do not pencil on yield without a below-market acquisition or significant rent improvement.

On carry costs, the tax-and-insurance picture is manageable. Using Tennessee's state-average effective property tax rate of 0.71%, annual property tax on the median-priced asset runs approximately $2,221, and insurance at 0.36% adds another $1,126 per year, putting combined monthly tax and insurance at $279. That is not a line item that breaks a deal, and the 0.71% rate earns a "normal" flag rather than a warning. Keep in mind this is a state-average estimate from Tax Foundation 2024 data, and actual Smith County or township-level rates may differ, so pull the county assessor's current rate before you finalize your underwrite. Tennessee's lack of a state income tax is a background tailwind for landlord net returns that does not show up in these figures but is worth remembering when comparing to states with income tax exposure.

The stability score of 50 is the number that deserves attention. At the midpoint of the scale, it is not a distressed reading, but it signals neither a deeply anchored economy nor a high-growth employment base. No economic anchor data was provided for Smith County, so no specific employer concentration or job driver can be cited here. What that absence does suggest for an investor is that before committing capital, independent research into the local employment base, commute patterns to nearby metros, and population trend data is necessary. A stability score of 50 on a 20,034-person county means thin margins for error if a major local employer contracts. Population at that level also means the rental pool is small, which can lengthen vacancy periods even in a market with low listed vacancy on paper.

Comparing Smith County to its neighbors sharpens the decision. Anderson County prices at $301,799 with a rent-to-price ratio of 6.36% and an overall score of 62. Greene County prices at $240,638 with a rent-to-price ratio of 6.52% and an overall score of 62. Both neighbors have actual yield data, lower prices, and comparable or lower overall scores. If cash flow is any part of the investor's objective, Anderson or Greene County offer measurable gross yields in the 6.3% to 6.5% range at lower entry prices, while Smith County offers a higher appreciation score and a higher median price with no demonstrated yield. Carroll County comes in at $180,314 and an overall score of 63, making it the lowest-cost entry in this peer set, though no rent data is provided there either. Rhea County and Lincoln County both score 68 overall versus Smith's 66, at $266,373 and $257,281 respectively, suggesting they offer a better overall profile at lower prices.

The case for choosing Smith County over these neighbors is narrow but real: if an investor has conviction that price appreciation is the primary return driver and is comfortable carrying the asset without confirmed cash flow, the 79 appreciation score stands above anything in this comparison set. If that conviction is not present, or if the investor needs yield to service the carry, Anderson County at $301,799 with a 6.36% gross rent ratio or Greene County at $240,638 with a 6.52% ratio are more defensible underwriting positions with real numbers behind them.