ZIP reports / TN / 38125
ZIP rental intelligence · 2026-06

ZIP 38125, Memphis, TN

Asking rent, household capacity, housing stock and local context—kept at their original geographic and measurement scopes.

Direct local rent answer

What does rent cost in ZIP 38125?

The latest Zillow ZORI for ZIP 38125 is $1,502 per month in 2026-06. It is a typical observed asking-rent index across rental types—not an arithmetic average, signed lease or quote for one property.

Zillow asking-rent index$1,5022026-06 · up 0.6% year over year
ACS median gross rent$1,581ACS 2024 5-year survey · ±$85 margin of error
HUD two-bedroom standard$1,550Administrative FMR/SAFMR · not asking rent
Bedroom-level rent benchmarks in ZIP 38125
BedroomsModelled asking-rent lensHUD standardHow to use it
Studio$1,250ZORI scaled by the local HUD bedroom ladder$1,290HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
1 bedroom$1,357ZORI scaled by the local HUD bedroom ladder$1,400HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
2 bedrooms$1,502ZORI scaled by the local HUD bedroom ladder$1,550HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
3 bedrooms$1,987ZORI scaled by the local HUD bedroom ladder$2,050HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.
4 bedrooms$2,306ZORI scaled by the local HUD bedroom ladder$2,380HUD FMR/SAFMR administrative benchmarkCompare with current same-bedroom listings; do not average these two measures.

Bedroom estimates are modelled, not observed rents. Zillow, Census ACS and HUD describe different housing universes and remain separate throughout this report.Zillow pulled 2026-08-08

Median household income$86,162ACS 2024 5-year · ±$5,175 MOE
Renter share46.5%7,382 renter households
Rent burden 30%+38.5%2,845 observed households
Housing vacancy5.0%844 of 16,732 units
Six views · one local decision

Read the measures together, without merging them

ZORI tracks observed asking rent, ACS describes occupied renter homes, and HUD publishes an administrative benchmark. The charts preserve those differences and add wider context only where the geography is named.

Three definitions of rent

Useful as a spread, not interchangeable observations.

Three rent measures for ZIP 38125Zillow asking-rent index$1,502ACS median gross rent$1,581HUD two-bedroom standard$1,550

Affordability screen

Annual income implied by 30% of the current ZIP ZORI.

Income screen for ZIP 38125ACS median household income$86,162Income at 30% of ZIP ZORI$60,080

Bedroom ladder

Modelled from ZIP ZORI using the local HUD ladder.

Modelled bedroom rent ladder for ZIP 38125Studio$1,250One bedroom$1,357Two bedrooms$1,502Three bedrooms$1,987Four bedrooms$2,306

Observed renter burden

ACS ZCTA households with computable gross-rent burden.

Observed renter cost burden in ZCTA 3812530% or more of income2,845 householdsBelow 30%4,537 households

ZIP versus wider rent context

Each bar retains its own ZIP, city, county or metro scope.

Asking-rent context for ZIP 38125ZIP 38125$1,502Memphis city$1,280Shelby County county$1,389Memphis, TN-MS-AR metro$1,435

Monthly asking-rent history

Direct Zillow ZORI observations over the latest five years. Missing months remain visible gaps.

Five-year direct Zillow asking-rent history for ZIP 38125; missing months remain gaps$1,552$1,467$1,383$1,2982021-062023-122026-06
Five-year change
12.5%exact same-month endpoints
Largest observed drawdown
2.9%peak to a later observed month
Annualized monthly variability
2.8%133 consecutive returns
Monthly coverage
100.0%134 of 134 months
Decision brief

What the evidence says for ZIP 38125

The first tension is that current asking rent sits above its broader rental contexts while its latest pace is muted. For the five-digit label 38125, June 2026 Zillow ZORI is $1,502 per month. This ZIP-level figure is a typical observed asking-rent index blended across rental types, rather than a quote for one available dwelling or a final signed lease. The five-digit label is both the Zillow ZIP market identifier and the matching Census ZCTA. A ZCTA is a statistical area and is not identical to a USPS delivery ZIP, so its survey evidence should not be treated as a delivery-boundary count.

Zillow’s direct ZIP history through that endpoint is backward-looking, not a forecast or an investment recommendation. Exact same-month annualized change was 0.58% over one year, 1.30% over three years, and 2.38% over five years. The latest reading therefore breaks from, rather than confirms, the stronger multi-year path: rent is still higher than a year earlier, but its recent rate is below both longer annualized measures. Coverage is 100% across the direct history. The return series had 2.79% annualized variability from monthly changes, which supports more confidence in a single current snapshot than a highly erratic series would, while still leaving movement around the point estimate. At its maximum drawdown, the index sat 2.90% below its prior peak, a limited but real historical setback. Transparent national discovery ranks place momentum at 2,056, stability at 1,226, and balance at 1,923; lower ranks are higher within history-eligible ZIPs.

The matched ACS 2024 five-year ZCTA estimate describes a different evidence universe. Median gross rent was $1,581 for occupied renter homes, and that survey measure includes selected utilities rather than only a current asking amount. Zillow’s $1,502 asking-rent index and the ACS gross-rent median therefore should not be read as interchangeable prices or as proof of a discount in either direction. The same ZCTA reports median household income of $86,162, with reported margins of error applying to the survey estimates. Applying the structural 30% screen to current ZORI produces $60,080 in annual income and places the asking-rent index at 20.9% of ZCTA median household income. That screen is arithmetic, not advice and not an applicant qualification rule.

Distributional survey results complicate any simple area-income reading. The matched ZCTA has 7,382 renter-occupied homes, representing 46.46% of occupied units, and 2,845 renter households are reported at or above the 30% rent-burden threshold, a 38.54% share. The housing stock is concentrated in single-family units, with large multifamily buildings a smaller component. The ZCTA vacancy rate is 5.04%, and 546 units were classified as vacant for rent. Those vacancy and burden aggregates are not proof that a particular dwelling is available, affordable to a particular household, or likely to command the index rent.

The bedroom view is modelled rather than observed. This packet’s FY2026 HUD FMR/SAFMR ladder, supplied as ZIP SAFMR or county-derived, is an administrative bedroom-specific standard, not asking rent; its studio and four-bedroom ends are $1,290 and $2,380. Scaling Zillow ZORI with that local HUD ladder produces modelled ZIP estimates of $1,250 for a studio, $1,357 for one bedroom, $1,502 for two bedrooms, $1,987 for three bedrooms, and $2,306 for four bedrooms. These are modelled estimates, never measured bedroom rents. They provide a consistent size-based translation of the blended index but do not establish what an individual unit of any size is currently advertised for.

Against wider geography only, the City of Memphis rental context is $1,279.69, the Shelby County rental context is $1,389, and the Memphis, TN-MS-AR metro rental context is $1,435. Each is a city, county, or metro comparison rather than ZIP-level unit evidence, and none should be substituted for the direct ZIP index, the matched ZCTA survey, or the HUD bedroom standard. The current ZIP index exceeds all three wider-area rent contexts. That level comparison reinforces the central tension: the ZIP stands above these broader benchmarks even though its own one-year rent movement has decelerated relative to its longer history.

Redfin’s direct rolling-three-month ZIP resale observation belongs exclusively to the for-sale market, not rental transactions. Median sold price was $299,932, up 1.67% year over year; 55 homes sold and median marketing time was 34 days. Inventory measured 62 homes and months of supply measured 3.5. The average sale-to-list ratio was 98.51%, while 15.11% of sold homes went above list price; those are resale-only signals. The 34-day figure describes observed marketing time in the ZIP resale sample, not rental lease-up speed. Resale price growth alongside slower asking-rent growth is a meaningful cross-market tension, not causal evidence. Annualized ZIP ZORI divided by median sold price is 6.01%, but it is only a cross-source screening ratio, not a cap rate, net return, expected return, or property yield.

No source here identifies a property’s lease outcome, physical condition, concessions, exact utility responsibilities, or final buyer terms. Concrete property-level checks needed to translate these area figures are the advertised monthly amount, bedroom count, rental type, lease length, utilities, concessions, and live availability; a sale listing additionally requires its own list price, marketing history, and sale record. The ACS vacancy and burden readings cannot prove that a particular unit is available or affordable, and the history and resale series are backward-looking measurements rather than forecasts, recommendations, or causal evidence. Does the specific listing’s documented all-in arrangement actually match the comparison being made?

Decision signals

What deserves a closer property-level check

Asking-rent growth has slowed

Zillow reports a $1,502 June 2026 ZIP ZORI, a blended typical asking-rent index rather than a signed-lease observation. Its 0.58% exact same-month one-year rise trails the 1.30% three-year and 2.38% five-year annualized changes. That sequence shows current rent direction has slowed relative to the longer historical path; it neither forecasts future rents nor identifies the rent of a particular home.

Area income screen and renter burden diverge

The matched ACS 2024 five-year ZCTA reports a $1,581 median gross rent for occupied renter homes, including selected utilities, while Zillow measures current asking rents. At $86,162 median household income, the ZIP ZORI produces a $60,080 annual 30% arithmetic screen, but 38.54% of surveyed renter households report spending at least 30% of income on rent. Those measures do not qualify or disqualify anyone.

Bedroom figures are HUD-scaled models

HUD’s FY2026 FMR/SAFMR figures are administrative standards by bedroom, not asking rents. Scaling the ZIP ZORI using the local HUD ladder produces modelled estimates of $1,250 for a studio, $1,357 for one bedroom, $1,502 for two bedrooms, $1,987 for three bedrooms, and $2,306 for four bedrooms. These are modelled estimates, not measured rents for units of those sizes.

Resale indicators do not become rental comparables

Redfin’s rolling-three-month ZIP result is a resale observation only: the $299,932 median sold price was up 1.67% year over year, 55 homes sold, and median marketing time was 34 days. Supply measured 3.5 months, while the 98.51% average sale-to-list ratio and 15.11% sold-above-list share are also for-sale signals. They cannot serve as rental comparables or establish property economics.

  • ZORI blends rental types and does not report a particular unit’s signed lease, concessions, condition, included utilities, or actual days available. Applying the index directly to a listing risks a false comparison.
  • ACS estimates come from the matched ZCTA’s five-year survey of occupied renter homes and carry sampling uncertainty. Its gross-rent concept includes selected utilities, so it cannot verify a current advertised asking rent.
  • Area vacancy and rent-burden figures are aggregate classifications, not evidence that any named unit is vacant, affordable to a particular household, or likely to lease at the ZORI level.
  • Redfin’s price, supply, marketing, and sale-to-list figures are direct ZIP resale evidence only. Combining them with Zillow rent creates a screening ratio, not a property-level operating result or forecast.
Direct ZIP resale evidence

For-sale liquidity inside ZIP 38125

Redfin reports these as a rolling three-month ZIP observation through 2026-06-30. They describe the for-sale market, not rental vacancy or the rent of a particular property.

Median sale price$299,932+1.7% year over year
Homes sold55rolling three-month observation
Median days on market34 daysfor-sale listing absorption
Months of supply3.5resale inventory relative to sales pace

Activity and available supply

Direct ZIP counts remain separate because each describes a different stage of the resale funnel.

Direct resale activity for ZIP 38125Active listings130Inventory62Pending sales71Homes sold55

Counter-signals before underwriting

A price alone does not reveal how quickly buyers are absorbing available homes.

Inventory direction

62 observed inventory · -6.9% year over year.

Price realization

98.5% average sale-to-list ratio · 15.1% sold above original list.

Early absorption

33.9% went off market within two weeks; compare this with 34 median days on market.

Measurement boundary

Small ZIP samples can move sharply. This rolling period smooths monthly noise but does not replace current address-level sale and rent comparables.

Redfin Data Center · updated 2026-07-03 · exact five-digit ZIP key. Implausible source values are withheld as n/a rather than repaired or inherited from a broader geography.

Wider market evidence

Listing and rental liquidity around the ZIP

These measures are not ZIP observations. They are labelled county or metro context so they can challenge the local story without being copied into it.

Shelby County listing conditions

n/a active Realtor.com listings · n/a · n/a price-reduced share · 2026-06.

Memphis, TN-MS-AR resale supply

4.0 months of supply · 37 median days on market · 30.8% listings with price drops · Redfin 2026-05-01.

Apartment List metro liquidity

8.3% reported apartment vacancy · n/a. These are direct metro observations and do not describe a particular ZIP unit.

Property-level next step

Compare live same-bedroom listings, concessions, utilities, condition and days listed inside ZIP 38125. The report frames the market; it does not replace a rent roll, lease review or address-level comparable set.

Questions this report can answer

Scope-aware answers

What exactly does the current $1,502 rent measure capture?

It is Zillow’s ZIP-level ZORI for June 2026: a typical observed asking-rent index blended across rental types. It is not a recorded signed lease, a bedroom-specific market rent, or an offer for an individual address. The ZIP label matches a Census ZCTA, but the ZCTA is a statistical geography rather than the same thing as a USPS delivery ZIP.

Why can Zillow asking rent and ACS gross rent differ?

They describe different universes. Zillow ZORI is a current ZIP asking-rent index blended across rental types, whereas ACS is a five-year survey of occupied renter homes in the matched statistical ZCTA and includes selected utilities in gross rent. Their values can be compared for context, but their difference does not demonstrate a discount, premium, or change in any particular lease.

How should the bedroom estimates and income screen be interpreted?

HUD’s FY2026 FMR/SAFMR is an administrative standard by bedroom. The reported studio through four-bedroom values are modelled estimates produced by scaling ZORI with that local HUD ladder; they are not observed bedroom rents. Separately, the $60,080 income figure applies a 30% arithmetic screen to current ZORI. It is neither affordability advice nor an applicant qualification requirement.

How should Redfin resale evidence be used next to the rent figures?

The Redfin block is a direct rolling-three-month ZIP for-sale and resale observation. Its 34-day median marketing time describes the pace of that resale sample, while sold prices, inventory, supply, and sale-to-list measures remain for-sale indicators. The annualized ZORI-to-price figure is useful only as a cross-source screening ratio and cannot be converted into a cap rate, expected return, or property yield.