Franklin (TN) Investor Pulse Report (2025-Q4)

Individual investors overwhelmingly dominate Franklin County's SFR rental market, owning 3,839 properties which constitute 90.6% of all landlord-held SFR units. This significantly dwarfs company ownership, which stands at just 449 properties (10.6%), reinforcing the prevalence of smaller-scale investors.

The landlord portfolio in Franklin County is almost entirely rental-focused, with 4,188 properties classified as rented, representing 98.8% of all investor-owned SFR. This high percentage underscores that investors in the county are primarily active landlords rather than holding properties vacant or for other non-rental purposes.

A striking trend in landlord acquisitions is the strong preference for cash purchases over financed deals. Cash-owned properties total 3,265, more than 3.3 times the 972 properties that are financed, suggesting a high level of capital liquidity or a preference for avoiding debt among Franklin County landlords.

The sheer number of individual landlords, totaling 5,105 entities, far surpasses the 376 company landlords, indicating that the vast majority of rental property providers are individuals or small partnerships. This 13.57:1 ratio of individual to company entities challenges perceptions of corporate dominance in the local rental market.

The minimal proportion of company-owned SFR properties (10.6%) despite a notable number of overall investor properties (4,237) highlights that Franklin County's investor landscape is predominantly driven by local, individual endeavors rather than large corporate strategies.

In a notable shift, landlords in Franklin County secured a substantial 10.1% discount on SFR properties in Q4 2025, paying an average of $307,413 compared to homeowners' $341,989. This $34,576 price difference signals a strong advantage for investors in the recent quarter.

The acquisition price differential between landlords and homeowners has been highly volatile throughout 2025. After landlords paid premiums of 4.2% ($15,438) in Q1 and 4.5% ($17,303) in Q2, and an even higher 29.4% ($106,864) premium in Q3, the sharp reversal to a 10.1% discount in Q4 highlights dynamic market conditions and shifting leverage.

Landlord average acquisition prices in Q4 2025 ($307,413) mark a significant decrease compared to both the full year 2025 average of $388,719 and the 2020-2023 period average of $389,388. This indicates a downward trend in acquisition costs for landlords, potentially reflecting a more favorable buying environment or a focus on lower-priced properties.

The swing from landlords paying substantial premiums in earlier 2025 quarters to a notable discount in Q4 suggests either a more disciplined investment strategy, or increased market distress creating opportunities for investor buyers. The $106,864 premium in Q3 stands as the highest recorded for the year, making the subsequent Q4 discount particularly impactful.

Despite the lack of explicit data on the number of landlord acquisitions for specific prior quarters, the consistent reporting of average prices for landlords vs. homeowners throughout 2025 provides clear insights into the evolving pricing dynamics within Franklin County.

Landlords in Franklin County accounted for a significant portion of Q4 2025 SFR purchases, acquiring 66 properties, which represents 36.1% of the total 183 SFR properties sold in the quarter. This strong market share demonstrates landlords' continued influence in the local housing market.

The vast majority of landlord purchasing activity was driven by mom-and-pop investors (Tiers 01-04), who bought 66 properties, comprising an impressive 95.7% of all landlord acquisitions in Q4 2025. This indicates that small-scale investors are the primary force behind current investor purchasing trends.

In stark contrast to the mom-and-pop dominance, institutional investors (Tier 09, 1000+ properties) made only a single purchase in Q4 2025, representing a mere 1.4% of total landlord acquisitions. This minimal activity suggests a limited or cautious presence of large-scale corporate buyers in Franklin County.

The single-property landlord tier (Tier 01) was particularly vibrant in Q4, with 79 distinct entities acquiring 49 properties. This high number of new, small-scale investors signals continued entry into the rental market and underscores the fragmented nature of local investor activity.

Looking at the average properties per entity for Q4 purchases, Tier 11-20 shows the highest buying intensity with 1 entity acquiring 2 properties, while Tier 01 (0.62 properties per entity) reflects individual new entrants. Overall, the Q4 purchase landscape is heavily skewed towards smaller investors, with little to no impact from institutional players.

Mom-and-pop landlords, encompassing those owning 1 to 10 properties (Tiers 01-04), collectively control a commanding 98.0% of all investor-owned SFR properties in Franklin County. This overwhelming concentration highlights their foundational role in the local rental housing market.

The single-property landlord tier (Tier 01) alone accounts for 80.9% of all investor-owned SFR, totaling 3,533 properties. This demonstrates that first-time and smallest-scale investors are not just numerous but are the dominant owners of rental housing.

In stark contrast to the mom-and-pop prevalence, institutional investors (Tier 09, 1000+ properties) maintain a nearly non-existent footprint, owning only 4 properties which constitutes a mere 0.1% of the total investor-owned SFR in the county. This figure significantly counters any perception of large corporate takeover in the Franklin County market.

The distribution reveals a steep drop-off in ownership share as portfolio size increases. After Tier 01, Tier 03-05 is the next largest segment at 7.4% (324 properties), followed by Tier 02 at 6.5% (286 properties). This signifies that while there are some landlords with a few properties, the market quickly becomes diluted beyond the single-property owner.

While specific 'All Time' acquisition prices by tier are not available within this section, the dominant ownership by mom-and-pop landlords suggests that local dynamics and smaller investment strategies drive the majority of the market's value and activity.

Individual investors consistently maintain majority ownership across all reported landlord tiers in Franklin County, defying any notion of corporate takeover within specific portfolio sizes. Even in the 'Small landlord (6-10 properties)' tier, individuals own 59.3% of properties (83 out of 140), showing their pervasive market presence.

The dominance of individual investors is particularly pronounced in the smallest tier, where they own 3,300 properties, representing 92.3% of the 'Single-property' (Tier 01) segment. This underscores the fragmented and individual-driven nature of new market entrants and small-scale landlords.

Although individual investors dominate, company ownership does see its highest relative concentration in the 'Small landlord (6-10 properties)' tier, where they account for 57 properties or 40.7% of that segment. This tier represents the closest point of competition for ownership types.

Beyond the 6-10 property tier, individual investor dominance strengthens again, notably in the 'Small-medium (11-20)' tier where they hold 63.8% of properties (30 out of 47), and in the 'Small-medium (21-50)' tier, where they control an even higher 92.6% (25 out of 27 properties).

The data clearly indicates that for Franklin County, the narrative of individual investors as the backbone of the rental market holds true across the spectrum of portfolio sizes, with no discernible 'crossover point' where companies become the majority owners in any given tier.

Within Franklin County, the 37330 zip code stands out as having the highest concentration of investor-owned SFR properties, totaling 659 units, which represents 25.2% of its total SFR market. This makes it the primary hub for investor activity by volume.

While 37330 leads in sheer numbers, the 37356 zip code demonstrates the highest investor ownership rate at an impressive 51.2%, indicating that over half of the SFR properties in this area are landlord-owned. This high penetration suggests a highly attractive or accessible market for investors, despite not being a leader in total property count.

The geographic distribution reveals distinct patterns: zip codes with the most investor-owned properties (e.g., 37330, 37324) do not necessarily have the highest investor ownership rates. For instance, 37324 ranks second in properties (454) but fifth in rate (27.5%), demonstrating different market structures.

Zip codes like 37375 (44.8% investor-owned) and 37352 (37.5% investor-owned) also show significant investor penetration rates, suggesting that smaller markets within the county can be highly attractive to landlords, potentially due to specific local market conditions or property characteristics.

The contrast between leading regions by count and by percentage highlights the importance of analyzing both metrics to understand local market dynamics. Some areas attract a large volume of investor properties, while others demonstrate a higher saturation of investor ownership within their existing housing stock.

Landlords in Franklin County are firmly in a net buying position, actively accumulating properties with a robust 5.37x buy-to-sell ratio in Q4 2025, where they purchased 102 properties while selling only 19. This aggressive acquisition trend signals strong confidence or opportunity in the market.

The overall net buying trend for landlords is consistent, with 390 properties bought versus 91 sold in Year 2025 (a 4.29x ratio), and 326 bought versus 79 sold in Year 2024 (a 4.13x ratio). This sustained pattern indicates a long-term strategy of portfolio expansion among local investors.

In stark contrast to the overall landlord activity, institutional investors (1000+ tier) exhibited very limited transaction volume. In Q4 2025, they completed 1 buy and 1 sell, resulting in a net neutral position, reinforcing their minimal direct market impact in this specific geography.

The quarterly buy/sell ratios demonstrate a dynamic market. While Q4 2025 shows aggressive buying, Q3 2025 was even more intense with a 5.67x buy/sell ratio (102 buys vs 18 sells), indicating periods of accelerated acquisition. Q2 2025 had a lower but still strong 3.03x ratio (103 buys vs 34 sells).

Despite the lack of detailed inter-landlord transaction percentages and average buy/sell prices within this section, the clear pattern of continuous net buying by the broad landlord community, coupled with the minimal institutional presence, paints a picture of a market driven by smaller, growing portfolios.

Landlords in Franklin County were involved in a notable 35.1% of all SFR transactions in Q4 2025, totaling 102 transactions out of 291. This robust activity confirms their significant role in market liquidity and property turnover.

The vast majority of Q4 landlord transactions were attributed to single-property investors (Tier 01), who completed 79 transactions, representing 77.5% of all landlord-involved deals. This highlights their continued dominance not just in ownership but also in market activity.

A striking pricing pattern emerged: institutional investors (Tier 1000+) paid an average purchase price of just $88,400, a dramatic 68.7% less than the $282,373 average paid by single-property landlords. This suggests institutional buyers are targeting significantly different and much lower-priced segments of the market.

Inter-landlord trading activity was very low; only 14 of the 79 transactions by single-property landlords (17.7%) involved buying from another landlord, while all other tiers reported 0% of their purchases from fellow landlords. This indicates that most landlord acquisitions are from traditional homeowners or other non-landlord sellers.

While Tier 02 landlords paid the highest average price at $382,056 in Q4, the overall price distribution shows smaller landlords (Tiers 03-10) paying less, in the range of $202,000 to $210,629. This varied pricing strategy across tiers signals diverse investment objectives and property targets within the landlord community.