1st Advantage MortgageA DSCR loan in Jackson turns on rent versus payment. Citywide medians from the Census are $1,145 a month for rent, $217,800 for home value and $1,527 a year for real estate taxes.
Local data for Jackson investors
The Census Bureau's 2020 to 2024 American Community Survey puts median gross rent in Jackson at $1,145, close to the Tennessee median of $1,189. Median home value sits at $217,800, which is about 24% below the Tennessee median of $286,700. By the simple measure of annual rent over home value, Jackson sits at 6.3%, neither especially thin nor especially rich. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Tennessee | Jackson | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 5.6% | 13.6% | +144% |
| Share of homes detached | 68.3% | 63.7% | -7% |
| Long commuters, 45 min plus | 15.2% | 8.2% | -46% |
| Degree holders, age 25+ | 31.1% | 27.8% | -11% |
| Workers on their own account | 9.8% | 8.1% | -18% |
| Renters paying 30%+ of income | 48.8% | 56.0% | +15% |
| Units sitting vacant | 10.2% | 9.2% | -10% |
| Typical construction year | 1987 | 1985 | |
| Annual rent divided by value | 5.0% | 6.3% | +27% |
| Households that rent | 33.1% | 48.8% | +48% |
| Tax as a share of home value | 0.50% | 0.70% | +39% |
| Annual property tax bill, median | $1,442 | $1,527 | +6% |
| Household income, median | $69,595 | $53,032 | -24% |
| Typical owner-occupied value | $286,700 | $217,800 | -24% |
| Residents (Census estimate) | 7,066,383 | 68,435 |
Renters make up 48.8% of households in Jackson (well above the Tennessee median of 33%), so rental demand is real but not overwhelming. The median household brings in $53,032 (about 24% below the Tennessee median of $69,595), with 56% of renters paying 30 percent or more of income toward rent.
The kind of housing in Jackson
Detached single-family homes make up 64% of the housing units in Jackson, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. The median home was built in 1985, a middle-aged stock where roofs, HVAC and water heaters are the main repair items.
About 9% of Jackson's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 5.5%.
Investor takeaways for Jackson
Jackson's 6.3% yield is workable. Expect most single-family rentals to land near the lender's minimum ratio, so details like taxes after reassessment matter. Median build year 1985 puts the typical Jackson rental in its second set of major systems. With about 49% of households renting, Jackson has enough tenants to support investors without being dominated by them.
What costs can do to a Jackson ratio
The Census reports median real estate taxes paid of $1,527 in Jackson, close to the Tennessee median of $1,442. Against the median value that is an effective rate of roughly 0.70%, compared with 0.50% for Tennessee as a whole. Compared with annual median rent, the tax line is about 11%.
For hazards, FEMA's National Risk Index puts Madison County at a relatively moderate overall rating, and its top-ranked hazards are earthquakes (relatively high), tornadoes (relatively high) and cold waves (relatively high).
| Hazard in Madison County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Earthquakes exposure | Relatively High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Jackson exclusions before trusting a premium estimate.
Running the numbers in Jackson
For a rough fit test, treat $1,145 as the rent and $127 as the monthly tax. The payment cannot exceed $1,145 at a 1.00 ratio, so $1,018 is left after taxes for interest, principal, insurance and any association dues, shrinking to $789 if the lender wants 1.25.
Registration, deposits and nightly stays in Jackson
We have not confirmed a city-specific rental registration or nightly-stay permit program for Jackson, so check with the city and with Madison County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. Guests who book by the night in Jackson are taxed under state law as follows. Tennessee charges sales tax on short-term rentals and a local occupancy tax on stays of 30 consecutive days or fewer, and platforms such as Airbnb collect both on bookings they process, while owners still handle business tax and direct bookings.
On deposits, Tennessee law (Tenn. Code Ann. § 66-28-301) says: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). That figure belongs in your Jackson pro forma as cash you hold, never as rent. For month-to-month tenants in Tennessee, the landlord's termination notice is 30 days written notice before the periodic rental date (10 days for week-to-week). Tennessee rent regulation summary: No; local governments may not control rent (Tenn. Code Ann. 66-35-102).
Other Tennessee cities for context
Across the Tennessee cities listed, Knoxville has the lowest median value ($239,700) and Franklin the highest ($705,400), against $217,800 for Jackson.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Knoxville | 53% | $1,527 | $239,700 | 195,185 | $1,191 |
| Hendersonville | 28% | $2,458 | $430,700 | 63,091 | $1,653 |
| Franklin | 36% | $3,011 | $705,400 | 87,133 | $1,923 |
| Jackson | 49% | $1,527 | $217,800 | 68,435 | $1,145 |
Employers and institutions near Jackson rentals
8.1% of employed residents work for themselves, which matters here because DSCR lending does not ask for tax returns or pay stubs. On the workforce side, government workers are about 13% of employment, 28% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
Higher education in and around Jackson includes Union University, Jackson State Community College, Lambuth University and University of Tennessee at Martin, which feeds demand for student, staff and faculty housing near campus. Access runs through interstate access via I-40 and air service through McKellar-Sipes Regional Airport, which shapes where commuters want to live and how long a showing takes.
Before you make an offer in Jackson
Ready to test a Jackson deal? Use the calculator for the ratio, then start your application or send us the scenario.
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Where these facts come from
- Tennessee short-term rental tax manual (Tennessee)
- Tennessee tax source: Tennessee local occupancy tax
- Census ACS profile behind the Jackson figures
- FEMA risk data used for Jackson
- Encyclopedia entry for Jackson
- Tennessee security deposit statute (Tenn. Code Ann. § 66-28-301)
Numbers for Jackson come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. Tennessee landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Reviewed in October 2026, with no promise that rules have stayed put.
Quick file checklist
Ask the seller for twelve months of utility bills and any lease on the Jackson property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Jackson rental?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Jackson median is $1,145.
What payment can a Jackson rent support?
The denominator is the whole housing payment. Using Jackson's median rent of $1,145, a ratio of 1.25 allows $916, and a ratio of 1.00 allows all $1,145.
What tax bill should I expect on a Jackson rental?
The Census reports a median of $1,527 a year for Jackson owners, about 0.70% of median value against 0.50% for Tennessee. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Can nightly stays at a Jackson property support a DSCR file?
It depends on the program and on local law. A Jackson owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
How much deposit can a Jackson landlord collect?
Tennessee limits deposits this way: No statutory cap (Tenn. Code Ann. § 66-28-301 sets none). The governing section is Tenn. Code Ann. § 66-28-301.
What hazard risk does Jackson carry for investors?
At the county level FEMA calls overall risk relatively moderate. Insurance, not the index, shows up in the ratio, so price a policy for the Jackson address.
Should a Jackson rental be bought in an LLC?
Many Jackson investors do, though no rule forces it. The loan is secured by the property either way, and the lender will check who controls the company.