RentalCalcs Editorial · tennessee-2026-10-19-v1 · Reviewed 2026-10-19

Tennessee: evidence to offer worksheet

Free property worksheet. Entries remain in this browser page and are not submitted or saved. Print or save your completed worksheet before closing. The worked example is hypothetical, not a property quote or market forecast.

Return to report

1. Match the evidence

The Nashville figures differ by 34 basis points. That difference is a methodology question, not an arbitrage opportunity. Northmarq’s quarterly average also differs from its first-half median-price cohort. A lower regional median price can reflect which properties sold rather than a decline in every building’s value. Keep each source’s date and cohort beside its figure.

2. Complete the local document checks

Nashville: improving leasing is not one agreed cap trend

Reconcile concessions, delinquency and renewals; obtain sale income for comparable vintage and location. Keep cap movement separate from the subject’s NOI change.

Franklin/Brentwood and Hermitage/Mount Juliet/Lebanon: locate remaining competition

Map completion dates by floor plan and driving catchment. Carry concessions and turnover through the overlap; compare achieved rent after all inducements.

Memphis: recovery starts from a different occupancy base

Obtain leases, arrears, deposits, turn budgets and monthly cash through breakeven occupancy. Request Memphis sale-cap income; do not import Nashville’s average.

Knoxville: a smaller future pipeline does not erase current projects

Obtain the actual completion calendar and renewal concessions for competing floor plans. Reconcile student and conventional tenancy separately where relevant; no Knoxville cap is inferred from occupancy.

Chattanooga: recent absorption and a renewed construction test

Map the next four quarters of competing openings, compare collected renewal rents and obtain local closing income. Nashville’s cap evidence does not substitute for Chattanooga sale comparables.

3. Reconcile the buyer budget

Worked example · annual dollars except acquisition amounts
ItemExample
Purchase price$3,000,000
Scheduled annual rent$417,600
Other recurring income$6,000
Collection / concession / vacancy loss-$42,000
Effective income$381,600
taxes$46,000
insurance$26,000
utilities$22,000
maintenance$32,000
management$26,000
administration$10,600
Recurring expense total$162,600
NOI before debt and reserve$219,000
Annual debt service$136,527
Annual replacement reserve$12,000
Cash after debt and reserve$70,473
Down payment + closing + initial work$1,440,000

Loan $1,800,000 at an assumed 6.5% for 30 years, monthly amortization. Going-in cap 7.30%; DSCR 1.60× before reserve, 1.52× after reserve; cash-on-cash 4.89%. Cash basis excludes an initial reserve deposit; add any lender-required deposit. No loan quote is implied.

4. Test the exit and invalidate the thesis

Value = annual NOI ÷ (cap percent ÷ 100). Keep cumulative NOI change separate from annual rent growth. A simple value comparison excludes debt payoff, sale costs, income tax and interim cash flows.

Choose the metro and income cohort

Keep Nashville series separate; leave unsupported local caps blank until matched comparables are obtained.

Fund the path to collections

Schedule concessions, vacancies, turns and arrears by month. Insert buyer taxes and an actual commercial insurance quote.

Separate the source of return

Show value from NOI, sensitivity to exit cap and cash after debt and reserves. Do not make compression rescue a weak budget.

Evidence ledger