Shelby County (Memphis), TN Metro · Tennessee County Underwriting Brief

Shelby County (Memphis), TN DSCR Property Tax, Windstorm & Transfer Tax Guide

In Shelby County (Memphis), Tennessee (Shelby County (Memphis), TN metro), 1–4 unit investment properties carry an average effective property tax rate of 1.42% and landlord hazard insurance averaging $640 per $100K of coverage. At a median 1–4 unit acquisition price of $235,000 and Form 1007 market rent of $1,950/mo, a 75% LTV DSCR loan models at 1.26x DSCR ($1,546/mo total PITIA).

Effective Property Tax
1.42%
Est. $278/mo at median
Landlord Ins / $100K
$640/yr
Est. $125/mo DP-3
Median 1–4 Unit Price
$235,000
75% LTV: $176,250
Modeled 75% LTV DSCR
1.26x
$1,950 rent / $1,546 PITIA

Shelby County (Memphis) Escrow & Closing-Cost Underwriting Rules

1. Post-Acquisition Tax Reassessment

Statutory county assessor periodic revaluation; underwriters use post-acquisition projected tax bill (typically 85%–100% of purchase price × county millage rate).

2. Windstorm, Flood & Hazard Tier

Memphis High-Yield SFR Turnkey Rental Hub

3. Transfer & Mortgage Recording Taxes

Standard county deed recording & nominal transfer fee ($50–$350 flat or ≤0.20% of consideration).

4. CEMA / Doc-Stamp Optimization Strategy

Underwrite post-acquisition tax bill using county millage calculator to prevent Year-2 escrow shortage.

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Shelby County (Memphis), TN DSCR Underwriting, Property Tax & Insurance Guide (2026) | Stephen R. Mannenbach | Stephen Mannenbach