Market Profile

• Population: 130,188
• Median Household Income: $55,814
• Unemployment Rate: 3.5%
• Job Growth: +1.2% annually
• Population Growth: +0.5% annually

Economic Drivers

• Manufacturing (Toyota, Kellanova)
• Healthcare
• Education
• Government
• Distribution

Market Trends

• Median Home Price: $229,324 - $310,000 (+0.4% to +6.5% YoY, up)
• Average Rent: $950/mo (+2.8% YoY, stable)
• Cap Rates: 8.0% - 10.0% (Unchanged, stable)

Tax Considerations

• Property Tax Rate: 0.87% - 1.0%
• Transfer Tax Rate: No state transfer tax
• Assessment Method: Assessed Value (Tennessee Property Tax Code)
• Opportunity Zones: 2 designated zones

Neighborhoods

Downtown Jackson

Historic downtown core with government buildings and ongoing revitalization efforts

• Median Price: $185,000
• Price Growth: +4.2% YoY
• Rental Yield: 9.8%
• Days on Market: 45 days

Investment Thesis: Opportunity zone benefits, low entry costs, and potential for appreciation as downtown revitalization continues with healthcare and government employment support.

North Jackson

Established residential area with proximity to Toyota manufacturing and healthcare facilities

• Median Price: $265,000
• Price Growth: +5.8% YoY
• Rental Yield: 8.2%
• Days on Market: 38 days

Investment Thesis: Stable rental demand from manufacturing and healthcare workers, consistent occupancy rates, and affordable entry points for quality properties.

West Jackson

Growing suburban area with newer construction and family amenities

• Median Price: $285,000
• Price Growth: +6.2% YoY
• Rental Yield: 7.8%
• Days on Market: 32 days

Investment Thesis: Family-oriented rental market, newer properties with lower maintenance, appeal to healthcare and education professionals.

Frequently Asked Questions

What makes Jackson attractive for 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.

How does Toyota’s presence affect the rental market?

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.

Are there opportunity zone benefits in Jackson?

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.

What are the main economic drivers supporting the market?

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.

How do Tennessee’s tax advantages benefit investors?

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.

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This information is for educational purposes only and is not legal or tax advice. Consult with qualified professionals regarding your specific situation.

More Tennessee metro guides

See the full Tennessee 1031 exchange guide for state tax rules, deadlines, and clawback status.

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