Why This Fast-Growing Community is a Smart Play for Single-Family Home Investors
Welcome to another edition of our Spotlight on Greater Memphis Investment Opportunities series. Today, we focus on Oakland, Tennessee—a rising star just east of Memphis that’s capturing the interest of real estate investors. Thanks to explosive growth, affordable housing, and close proximity to the region’s largest economic projects, Oakland offers incredible value to investors seeking long-term rental property income.
Whether you’re new to real estate investing or looking to expand your portfolio, Oakland deserves your attention.
Why Oakland, TN Is a Hotspot for Real Estate Investors
Location, Location, Location
Oakland is located just 35 miles east of downtown Memphis, providing an ideal balance between small-town comfort and big-city convenience. Commuters enjoy an easy 35–40-minute drive to major Memphis employers, including FedEx headquarters, St. Jude Children's Research Hospital, Baptist Memorial Hospital, and the Amazon fulfillment center in Arlington.
A Surge of Economic Growth: The BlueOval City Effect
Oakland is just a short drive from Ford’s BlueOval City, a $5.6 billion electric vehicle and battery production campus now under construction near Mason, TN. This project is expected to bring over 6,000 new jobs to the region, and many of those workers will be looking for housing in nearby communities like Oakland. The ripple effect from this investment is already being felt across Fayette County, with local businesses, schools, and infrastructure preparing for increased demand.
Oakland's Housing Market: A Decade of Impressive Growth
Investors love Oakland’s real estate market for one key reason—steady appreciation.
2015 Median Home Price: ~$200,000
2025 Median Home Price: ~$372,000
10-Year Growth: 86% increase
This significant appreciation is a strong indicator of Oakland’s potential for continued property value gains.
Average Rent Growth: Strong and Steady
Alongside home prices, rents in Oakland have also grown steadily over the past decade:
2015 Average Rent: ~$1,100/month
2025 Average Rent: ~$1,850/month
10-Year Growth: 68% increase
This trend demonstrates consistent tenant demand and the opportunity for positive monthly cash flow, even after expenses.
Favorable Taxes and Investor-Friendly Policies
Tennessee is well-known as one of the most tax-friendly states in the U.S.—and Oakland is no exception.
- No state income tax on rental income.
- Low property taxes: Fayette County’s effective property tax rate is well below the national average.
- Mortgage interest, maintenance, repairs, property management, and insurance may all be tax-deductible when you own a rental property.
These factors significantly improve your net ROI and make it easier to hold property for the long term.
Schools and Livability: What Tenants Are Looking For
Oakland is served by the Fayette County School District, which includes Oakland Elementary School, West Junior High, and Fayette-Ware High School. These schools are improving and benefit from a supportive, engaged local community.
Families are drawn to the area for its safe neighborhoods, affordable living, and strong community values—making it easier to find and retain quality tenants.
The Financial Benefits of Owning Rental Property
Owning rental property in Oakland offers multiple financial advantages beyond just monthly rent:
- Equity Buildup: Each mortgage payment builds ownership over time.
- Appreciation: Rising home values grow your wealth passively.
- Tax Deductions: Write off nearly all operational costs.
- Depreciation: Even though your property may gain value, you may also be able to depreciate the structure—lowering your taxable income.
- Cash Flow: With Oakland’s rent-to-cost ratio, positive monthly income is very achievable.
- 1031 Exchange Option: When you’re ready to sell, you may be able to defer capital gains taxes by reinvesting in another property.
In short, Oakland checks every box for both short-term income and long-term wealth-building.
Work with Reed & Associates to Maximize Your Investment
At Reed & Associates, we specialize in helping investors find the right single-family properties in high-growth areas like Oakland. Our team handles everything from property selection and acquisition to full-service management, including:
- Tenant screening
- Leasing
- Rent collection
- Maintenance
- Local market expertise
We take the stress out of investing, so you can focus on building your portfolio.
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.
Ready to Explore Oakland?
Now is the time to get in early while Oakland’s market is still affordable and demand is heating up. With BlueOval City coming online, the upward trend is only expected to continue.
Contact Jeremy Snyder, Director of Client Relations, at (901) 287-1411 to learn how Reed & Associates can help you invest with confidence in the Greater Memphis area.
Stay tuned for our next post in the Spotlight on Greater Memphis Investment Opportunities series—where we’ll bring you the inside scoop on another emerging real estate market: Arlington, Tennessee.