38109
Memphis, Tennessee

ZIP code 38109 in Memphis shows moderate price appreciation with a median sale price of $102,000, up 7.4% year-over-year as of February 2026. Homes are moving at a measured pace, averaging 60 days on market, while only 12% of properties sell above asking price. This sub-$110K median positions the area in Memphis's lower price tier, where demand remains present but competitive pressure is limited compared to higher-priced segments where multiple offers are more common.

The market structure favors value-focused investors seeking cash-flowing rental properties and first-time buyers with limited capital. The 12% above-list rate indicates minimal bidding wars, giving buyers negotiating leverage that's absent in hotter Memphis submarkets. Sellers with equity built from the 7.4% annual gain can exit successfully, though the 60-day absorption period requires realistic pricing expectations. Buy-and-hold investors benefit from the entry price point, assuming rental fundamentals support projected returns at this valuation level.

The PropIQ score of 65 signals caution, suggesting underlying friction despite positive price momentum. This divergence between appreciation and the intelligence rating warrants scrutiny of inventory trends, demographic shifts, or employment patterns that may pressure future values. Buyers should verify that the 7.4% growth reflects sustainable demand rather than low-volume statistical noise. Monitor whether days-on-market extends beyond 60 or if the above-list percentage drops below 12%, as either would confirm weakening conditions implied by the caution-level score.