Memphis Housing Market — 2026 Reality Check
The median home price in Memphis is $195,000. At today's rates (6.9%), an 80% conventional loan on that home costs $1,027/month in principal and interest alone — before taxes, insurance, and HOA.
To qualify under standard bank underwriting (28% front-end DTI), you need a gross income of at least $41,000/year. The median household income in Memphis is approximately $57,000/year — putting the price-to-income ratio at 3.4×.
Median Home Price$195,000
20% Down Payment$39,000
3.5% FHA Down Payment$6,825
Est. Monthly Payment (80% LTV)$1,027/mo
Salary Needed (28% DTI)$41K+/year
Price-to-Income Ratio3.4× median income
FRC Buyer Demand ScoreCOLD
Current Mortgage Rate Est.6.9%
Frequently Asked Questions
What salary do I need to buy a home in Memphis?
Based on the median Memphis home price of $195,000 and standard 28% front-end DTI ratio, you need a gross income of at least $41,000/year to qualify for a conventional mortgage. With existing debt obligations (car payments, student loans), you may need more.
Is Memphis a buyer's or seller's market in 2026?
Based on FRC Buyer Demand data from active listings, Memphis is currently showing COLD demand. This means buyers have significant negotiating leverage — homes are sitting longer and sellers are reducing prices.
What is the down payment for a home in Memphis?
For the median Memphis home ($195,000): 20% conventional down payment = $39,000. FHA minimum 3.5% down = $6,825. FHA requires a credit score of 580+. Conventional loans typically require 620+.