1031 Exchange in Jackson Tennessee MSA
The Jackson MSA offers affordable 1031 exchange opportunities with solid cap rates, stable rental demand driven by manufacturing and healthcare sectors, and low property taxes in West Tennessee's regional hub.
Population
130,188
Key Industries
Manufacturing (Toyota, Kellanova), Healthcare, Education
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.87% - 1.0%
Assessment Method
Assessed Value (Tennessee Property Tax Code)
MSA rate (0.87%) vs State average (0.48%)
+81% above state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Local recording fees and title insurance costs apply
Local Tax Incentives
Industrial Development Board Incentives
Tax abatements and incentives for qualifying industrial developments
Eligibility: Manufacturing and industrial projects meeting job creation requirements
Tennessee Job Tax Credit
State tax credits for job creation in qualifying industries
Eligibility: Businesses creating qualifying jobs in targeted industries
Opportunity Zones
Number of Zones
2
Key Locations
- Downtown Jackson
- East Jackson
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
Exchange Timeline Calculator
Plan your exchange with local market considerations
Enter the closing date of your relinquished property to calculate your 1031 exchange deadlines:
Market Profile Dashboard
Economic indicators and market trends
Population
130,188
Growth: +0.5% annually
Median Income
$55,814
Unemployment
3.5%
Job Growth
+1.2% annually
Economic Drivers
Market Trends
Median Home Price
$229,324 - $310,000
Average Rent
$950/mo
Cap Rates
8.0% - 10.0%
Demographics
Median Age
37.2 years
Bachelor's Degree+
23.8%
Owner Occupied
61.4%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by manufacturing and healthcare workers with stable employment base.
Market Metrics
- Cap Rates: 9.2%
- Vacancy Trends: Low vacancy at 6.8% due to stable employment from major manufacturers
- Demand Forecast: Stable demand from Toyota, healthcare, and education employment
Risk Factors
- Dependence on major manufacturing employers
- Limited population growth affecting demand expansion
Opportunities
- Stable manufacturing employment base
- Growing healthcare sector
Single-Family Rental
Popular with manufacturing workers and healthcare professionals seeking affordable housing solutions.
Market Metrics
- Cap Rates: 10.5%
- Vacancy Trends: Very low vacancy at 5.2% with good tenant retention
- Demand Forecast: Strong fundamentals with manufacturing and healthcare employment base
Risk Factors
- Economic dependence on major employers
- Limited appreciation potential due to modest population growth
Opportunities
- High cap rates for cash flow focus
- Stable tenant base with manufacturing jobs
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Jackson
Historic downtown core with government buildings and ongoing revitalization efforts
Investment Thesis
Opportunity zone benefits, low entry costs, and potential for appreciation as downtown revitalization continues with healthcare and government employment support.
Median Price
$185,000
Price Growth
+4.2% YoY
Rental Yield
9.8%
Days on Market
45 days
Key Highlights
Development Pipeline
Downtown revitalization projects and historic preservation initiatives
North Jackson
Established residential area with proximity to Toyota manufacturing and healthcare facilities
Investment Thesis
Stable rental demand from manufacturing and healthcare workers, consistent occupancy rates, and affordable entry points for quality properties.
Median Price
$265,000
Price Growth
+5.8% YoY
Rental Yield
8.2%
Days on Market
38 days
Key Highlights
Development Pipeline
Limited new construction, focus on existing home improvements
West Jackson
Growing suburban area with newer construction and family amenities
Investment Thesis
Family-oriented rental market, newer properties with lower maintenance, appeal to healthcare and education professionals.
Median Price
$285,000
Price Growth
+6.2% YoY
Rental Yield
7.8%
Days on Market
32 days
Key Highlights
Development Pipeline
Continued suburban development and commercial expansion
Find Investment Properties
Discover replacement properties in this market
Ready to Find Your Replacement Property?
Get personalized property recommendations and expert guidance for your 1031 exchange in the Jackson Tennessee market.
Start Property SearchConnect with local specialists who know the Jackson Tennessee market
Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Jackson Tennessee (Current) | Clarksville | Cookeville | Martin |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Jackson Tennessee 1031 exchanges
Jackson offers strong cap rates (8-10%), low property taxes (0.87%), stable rental demand from Toyota manufacturing and healthcare employment, and affordable entry costs with median home prices around $229,000-$310,000.
Toyota Motor Manufacturing employs thousands of workers, providing stable rental demand. Manufacturing workers typically have steady income and longer tenure, making them reliable tenants for single-family and multifamily properties.
Yes, Jackson has two designated Opportunity Zones in downtown and east areas, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by Toyota Motor Manufacturing, West Tennessee Healthcare, Kellanova food manufacturing, Jackson-Madison County School System, and regional government employment, providing stability and consistent rental demand.
Tennessee has no state income tax, low property taxes (0.87% vs. 1.02% national), and business-friendly policies. The state's 25% residential assessment ratio and low overall tax burden create favorable investment conditions.