Invest In Apartment Buildings In Morristown, TN

Where Morristown's Apartment Demand Comes From

About 45.1% of households in Morristown, TN rent their home. That's 5,537 renter households, according to the Census Bureau's ACS 2020–2024 estimates. The number of renter households fell 4.6% over five years, while population was up 5.9%. That can happen when renters buy homes or rentals are sold to owner-occupants, and it's something we check before assuming rents will keep rising.

The typical Morristown household earns $47,917 a year, 48.8% more than in the 2015–2019 survey. The number of employed residents rose 11.2% over the same period, and unemployment stood at 7.1%. Income growth of 48.8% has outrun rent growth of 20.7%, so rents here are more affordable relative to earnings than they were.

Morristown has a sizable renter base without being a renter-majority market. Location inside the city matters a lot, since demand tends to cluster near jobs, transit and schools.

Morristown Rent Trends And Supply

Median gross rent in Morristown, TN is $882 a month, up 20.7% from $731 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's solid growth, broadly in line with many U.S. markets over the same years.

The rental vacancy rate of 8.8% is on the high side, so we'd budget for longer lease-ups and more marketing. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 44.9% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 14.6% of homes in Morristown are in buildings with 5 or more units, roughly 1,982 homes. That count was down 4.6% over five years, so new apartment supply has been limited. The median home was built in 1976, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

Where Morristown Stands Among Its Peers

We track 30 Tennessee cities. Morristown places 29th for median gross rent, 11th for renter share and 28th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Morristown now has about 1,745 more residents, 267 fewer renter households and 96 fewer homes in buildings with 5 or more units. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

Morristown Compared With Tennessee

Morristown's median gross rent of $882 is below the Tennessee median of $1,189, and its renter share is 45.1% compared with 33.1% statewide.

Morristown Rent Affordability In Dollars

At $882 a month, the median Morristown rent adds up to $10,584 a year, or roughly 22.1% of what the median household earns. Under the common 30% guideline, a household needs about $35,300 a year to cover that rent comfortably. That's a heavier load than the Tennessee average of 20.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Morristown rent climbed $151 a month over five years and household income climbed $15,715 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago.

Quick Facts: Morristown Rental Market

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Morristown, TN has 31,527 residents, up 5.9% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Morristown, TN is $47,917, up 48.8% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Morristown, TN is $882 a month, up 20.7% over five years (U.S. Census ACS 2020–2024).
• 45.1% of households in Morristown, TN rent, about 5,537 renter households (U.S. Census ACS 2020–2024).
• 14.6% of homes in Morristown, TN are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Morristown, TN is 8.8%, and 44.9% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Morristown, TN was built in 1976 (U.S. Census ACS 2020–2024).

What We Look For In A Morristown Apartment Building

Our buy box in Morristown is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Tennessee has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Tennessee has no statewide rent control law, though local rules on notices, fees and deposits still apply. We get an insurance quote before we make an offer, because premiums have risen in most states.

Higher vacancy means we put more weight on a building's own leasing history than on the market average.

Due Diligence For Apartment Syndications In Morristown

The data on this page turns into a short checklist for evaluating an apartment syndication in Morristown.

• What vacancy does the plan assume? Rental vacancy in Morristown is 8.8%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 20.7% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Morristown was built in 1976, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Morristown fell 4.6%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Morristown Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Morristown, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

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