Average capitalization rate in Tennessee, United States

You may also be interested in

Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Tennessee

MedianMeanMode
7.0%
From 3,908,894 homes
7.1%
From 3,908,894 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Tennessee

LocationMedianMeanMode
Adams
6.7%
From 1,958 homes
6.7%
From 1,958 homes
-
Adamsville
8.0%
From 1,759 homes
8.0%
From 1,759 homes
-
Alamo
8.8%
From 1,342 homes
8.9%
From 1,342 homes
-
Alcoa
6.9%
From 6,635 homes
7.0%
From 6,635 homes
-
Alexandria
6.9%
From 558 homes
6.6%
From 558 homes
-
Algood
7.7%
From 2,562 homes
7.8%
From 2,562 homes
-
Allardt
6.3%
From 434 homes
6.4%
From 434 homes
-
Altamont
6.2%
From 848 homes
6.1%
From 848 homes
-
Anderson County
7.1%
From 19,164 homes
6.9%
From 19,164 homes
-
Andersonville
6.1%
From 404 homes
6.2%
From 404 homes
-

All cities in Tennessee