Property Tax

The annual tax levied by local government based on the assessed value of the property. Shelby County (Memphis) assesses residential property at 25% of appraised value, then applies the tax rate. On a $150,000 Memphis rental, expect roughly $1,800-$2,400/year in property taxes. These are your second-largest expense after the mortgage and they only go up. Budget for annual increases of 2-5%.