The typical Tennessee home
is worth $338,769
+0.5% over the last year and +29.5% over five. Gross yield across its largest cities runs near 5.5%. Figures from Zillow's published indices, June 2026.
Before you read on
- Source: Zillow Research — ZHVI (typical home value) and ZORI (observed rent index). Values as of June 2026.
- Gross yield is annual rent over value, before property tax, insurance, management and any HOA. It is a screening number, not a return.
- State rent and state yield are the median across the 30 largest Tennessee cities that publish both series. Zillow does not publish a state rent index.
- Property tax is set by the county and the school district, not the state. Get the figure for the specific parcel from the county assessor before you underwrite.
The decadeTennessee home values, 2016 to 2026
From $167,567 to $338,769. What that line does not show is what it cost to hold the asset over the same period, which is where most of the difference between states actually sits.
CitiesThe largest Tennessee markets
Ranked by Zillow's size rank. Yield is annual rent over value, on the same basis throughout, so the columns are comparable across every page on this site.
| City | Typical value | 1 year | 5 years | Typical rent | Gross yield |
|---|---|---|---|---|---|
| Nashville | $436,603 | -3.3% | +20.9% | $1,825/mo | 5.02% |
| Memphis | $146,746 | -3.0% | +9.7% | $1,280/mo | 10.46% |
| Knoxville | $376,648 | +1.0% | +47.6% | $1,735/mo | 5.53% |
| Murfreesboro | $430,236 | -0.3% | +27.6% | $1,687/mo | 4.70% |
| Clarksville | $322,202 | -0.2% | +29.4% | $1,376/mo | 5.12% |
The spread within a single state is usually wider than the spread between states. Picking Tennessee is not a decision; picking a submarket inside it is.
Reading itWhat these numbers do and do not tell you
A gross yield of 5.5% is not 5.5% in your hand. Property tax, insurance, management, vacancy and maintenance come out first, and in several US states the first two have risen faster than rent over the last three years. A high-yield state with an insurance problem can net less than a low-yield one without.
The value index is also a mid-tier measure across the whole state. It moves slowly and it hides the fact that two counties inside Tennessee can be going in opposite directions. Use it to decide where to look, not what to pay.
Tennessee levies no personal income tax on wages, which is frequently cited as a reason to buy here. It does not exempt you from federal tax on rental income, and a non-resident owner still files a federal return. Read the property tax guide before treating the absence of income tax as a saving.
NearbyHow the neighbouring states compare
Same measures, same date. Investors comparing a metro often find the better version of their thesis one state over.
| State | Typical value | 5 years | Gross yield | State income tax |
|---|---|---|---|---|
| Alabama | $241,517 | +20.7% | 6.97% | Yes |
| Arkansas | $228,662 | +24.3% | 6.26% | Yes |
| Georgia | $335,358 | +26.2% | 6.37% | Yes |
| Kentucky | $235,363 | +27.3% | 5.77% | Yes |
| Missouri | $271,597 | +27.6% | 5.75% | Yes |
| Mississippi | $198,428 | +15.6% | 7.71% | Yes |
| North Carolina | $340,430 | +27.5% | 5.92% | Yes |
| Virginia | $419,920 | +24.7% | 5.22% | Yes |
Yes. No US state restricts residential purchase by non-citizens, and no visa or residency is required to hold title. A few states have introduced limits on foreign ownership of farmland or land near military installations; those rules do not reach ordinary housing. What is harder is borrowing, which needs a foreign national loan programme rather than a conventional one.
Annual rent divided by value, expressed as a percentage, using Zillow's rent index and value index for the same place on the same date. For Tennessee the state figure is the median across its 30 largest cities with both series published. Nothing is deducted, which is why it is called gross.
It depends on the county, the municipality and the school district, and the rate applied to an assessed value that may not equal the market value. State averages circulating online mix all of that together. Look the parcel up on the county assessor's site before you underwrite it.
Federal capital gains, plus depreciation recapture if it was rented, plus state tax where the state levies it. A non-resident seller also faces FIRPTA withholding of 15% of the gross price at closing, refundable only after a return is filed. That is a cash-flow problem, not a tax problem, and it is solvable in advance.
Values are as of June 2026 and the page rebuilds when the underlying indices update. Zillow revises its history, so a figure quoted from an older version of this page may not match today's.
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Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Market figures derived from Zillow Research — ZHVI (typical home value) and ZORI (observed rent index), as of June 2026. Indices are estimates of typical values and are revised by their publisher. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.