Why This Booming Suburb Offers Outstanding Returns for Single-Family Home Investors

Southaven, Mississippi continues to rise as one of the most attractive real estate markets in the Greater Memphis area — especially for investors focused on single-family rental properties. With its strategic location just minutes from downtown Memphis, nationally ranked schools, low property taxes, and explosive residential and commercial growth, Southaven offers long-term stability and strong cash flow potential.
Whether you're a first-time investor or looking to expand your portfolio, Southaven checks all the right boxes. This article will explore:

- Commute times and access to major employers

- Local business developments, restaurants, and attractions

- Home value appreciation over the past 5, 10, and 20 years

- Rental income trends and occupancy rates

- Property tax benefits and affordability advantages

- Real estate returns vs. the stock market

- How Reed & Associates can help you make smart investment decisions

Central Location, Ideal for Commuters and Employers

Located just across the Tennessee border, Southaven is directly connected to Memphis, Tennessee, via Interstate 55, Interstate 69, and Highway 51. These highways make it one of the easiest communities for commuters heading to:

- FedEx World Headquarters (East Memphis): ~22 minutes
- Downtown Memphis (St. Jude, AutoZone, ServiceMaster): ~18 minutes
- Amazon & UPS Fulfillment Centers: ~12–15 minutes
- Memphis International Airport: ~15 minutes

Southaven also serves as a hub for logistics, healthcare, education, and retail, offering residents short commutes to work and providing property owners access to a large pool of renters looking for suburban lifestyle without sacrificing convenience.

Thriving Local Economy and Lifestyle Amenities

Southaven is more than a commuter suburb. It boasts a fast-growing business and retail district anchored by some of the region’s most visited destinations:

- Snowden Grove Park: A 200-acre mega park with 20 baseball fields, playgrounds, trails, and outdoor events like Springfest and July 4th fireworks.
- Landers Center: A 10,000-seat arena hosting concerts, trade shows, expos, and home to the Memphis Hustle (NBA G-League).
- Tanger Outlets Southaven: A regional retail center featuring Nike, Levi’s, Under Armour, Columbia, and more — drawing shoppers from three states.
- Popular Restaurants:
  - Maria’s Cantina (Tex-Mex with rooftop dining)
  - Memphis Barbecue Co. (nationally ranked BBQ)
  - Huey’s Southaven (local burger favorite)
  - LongHorn Steakhouse, Cracker Barrel, and other nationally recognized chains

Affordable Property Taxes and Ownership Costs

One of the biggest investor draws to Southaven is DeSoto County’s lower property taxes compared to neighboring Shelby County in Tennessee. As of 2025:

- DeSoto County average property tax: ~0.73%
- Shelby County average property tax: ~1.45%

That means you’ll keep more of your rental income each year, and it makes the math work for investors targeting positive monthly cash flow.

Strong Long-Term Home Price Appreciation

Southaven has seen consistent and impressive home value growth across multiple decades:

- 5-Year Growth:
  - 2020: ~$185,000
  - 2025: ~$250,000
- 35% increase

- 10-Year Growth:
  - 2015: ~$145,000
  - 2025: ~$250,000
  - 72% increase

- 20-Year Growth:
  - 2005: ~$100,000
  - 2025: ~$250,000
- 150% increase

This appreciation, paired with steady rental income, gives real estate investors the dual benefit of cash flow and equity growth.

Real Estate vs. Stock Market: What $100,000 Gets You

Let’s compare two scenarios using $100,000 invested in 2015:

Scenario A: Stock Market
- Average return: ~10% annually
- 2025 value: ~$259,000
- No cash flow or tangible asset

Scenario B: Southaven Rental Home
- 2015 home value: ~$145,000
- Initial investment of $100,000 could cover down payment + closing costs
- 2025 home value: ~$250,000 → $105,000 equity gain
- Rent collected (avg. $1,400/month x 10 months/year x 10 years): $140,000 gross
- Expenses ($2,000/year x 10): $20,000
- Net rental income: $120,000
- Total return (equity + rent): $225,000

Even before accounting for depreciation, interest deductions, and other write-offs, your rental property provides predictable returns, cash flow, and tax advantages.

Disclosure: Investors should consult their tax accountant to understand how benefits like depreciation and expense write-offs apply to their specific tax situation.

Rent Growth and Occupancy Trends

Southaven rental demand has remained strong due to its schools, safety, and quality of life. Here's the average rent progression:

- 2015: ~$1,100/month
- 2020: ~$1,350/month
- 2025: ~$1,650/month

With average occupancy rates of 10+ months per year for well-maintained properties, investors in Southaven enjoy both stability and upside.

At Reed & Associates, we help ensure that stability through our industry-leading tenant screening process, which results in one of the lowest delinquency rates in the region. By placing the best-qualified tenants into your homes, we protect your investment from risk and turnover.

DeSoto County Schools and Community Involvement

Tenants are drawn to Southaven not just for affordability and location, but also for the DeSoto County School District — consistently rated among the top public schools in Mississippi.

Community events like:
- Springfest at Snowden Grove
- Southaven Christmas Parade
- Youth baseball tournaments and concerts
- Seasonal events at Tanger Outlets and Landers Center

...all help foster a strong sense of belonging, boosting tenant satisfaction and retention.

This blog post is intended to provide general information with regard to real estate investing. The information provided herein is for informational purposes only and should not be construed as tax advice. Please consult your tax advisor for guidance specific to your financial situation and current tax laws.

Work With the Experts at Reed & Associates

At Reed & Associates, we specialize in identifying, acquiring, and managing high-performing single-family rental homes across Greater Memphis. We bring investors fully vetted opportunities in top markets like Southaven and handle everything from leasing to maintenance and compliance.
Contact Jeremy Snyder, Director of Client Relations, at (901) 287-1411 to schedule a free consultation and discover the right investment for you.
Whether you're local or out-of-state, you can count on Reed & Associates to make your investment stress-free, strategic, and successful.

Next in Our Spotlight Series: Lakeland, Tennessee

Stay tuned as we explore this thriving east Memphis suburb, known for its excellent schools, rapid growth, and emerging opportunities for real estate investors.