DeKalb (TN) Investor Pulse Report (2026-Q1)

In DeKalb County, investors hold a significant 32.8% of the single-family housing market, totaling 2,430 properties. This demonstrates a high level of real estate investing activity relative to the total market size of 7,411 SFR homes.

The ownership structure is overwhelmingly dominated by individuals rather than corporations. Individual landlords own 2,132 properties, accounting for 87.7% of the investor-owned portfolio, compared to just 347 properties (14.3%) owned by companies.

This individual dominance extends to the entity level, where 2,716 of the 2,969 landlords (91.5%) are individuals. This highlights a market characterized by local, small-scale investment, not large-scale corporate ownership.

A strong indicator of financial health or a specific investment strategy is the method of ownership. A vast majority of investor properties, 1,996 in total, are owned outright (cash), while only 434 are financed. This high ratio of cash-to-financed properties suggests many investors are operating without debt leverage.

The primary use for these properties is clear, with 2,419 of the 2,430 investor-owned homes identified as rented. This near-total rental concentration underscores the role of these investors as housing providers in the local market.

Contrary to common market assumptions, landlords in DeKalb County paid a premium for properties in the most recent quarter. In Q1 2026, the average landlord acquisition price was $348,969, which is $23,989, or 7.4%, higher than the average price of $324,980 paid by traditional homeowners.

This trend of paying a premium is not an isolated event. Landlords also paid more than homeowners in Q3 2025 (a 5.4% premium) and Q1 2025 (an 18.6% premium), indicating a competitive market where investors are willing to outbid other buyers for desirable properties.

The relationship between landlord and homeowner pricing has been notably volatile. The significant premiums stand in stark contrast to Q2 2025, when landlords secured a deep 26.5% discount, paying on average $93,168 less than homeowners. This swing from a major discount to a major premium in a matter of months points to a dynamic and inconsistent market.

Historical pricing data shows a steady appreciation in the market. The average landlord acquisition price during the 2020-2023 period was $311,938, rising to an average of $347,308 for the full year 2024. The Q1 2026 price of $348,969 continues this upward trend.

Investor activity was a major force in the DeKalb County housing market in Q4 2025, with landlords purchasing 37 of the 93 total SFRs sold, a market share of 39.8%. This high purchase rate underscores their significant impact on local housing demand.

The activity was overwhelmingly driven by small-scale investors. Mom-and-pop landlords (owning 1-10 properties) acquired 38 properties, representing 95.0% of all landlord acquisitions during the quarter. In contrast, institutional investors (1000+ properties) made no purchases.

A notable trend is the entry of new landlords into the market. The single-property tier saw 36 distinct entities purchase 28 properties, signaling a healthy influx of first-time investors. This grassroots activity is the primary driver of market growth.

The concentration of buying power is at the smallest end of the spectrum. The single-property (Tier 01) and two-property (Tier 02) categories combined for 34 of the 40 total investor purchases (85.0%), reaffirming that the market is defined by small, independent operators.

The investor landscape in DeKalb County is definitively controlled by small landlords. An overwhelming 93.5% of the 2,430 investor-owned SFRs belong to mom-and-pop investors in Tiers 01-04 (1-10 properties).

The backbone of this market is the single-property landlord. This tier alone accounts for 2,021 properties, representing 80.7% of all investor-owned housing. This signifies a market built on individual investments rather than large-scale portfolios.

In stark contrast, the presence of large-scale institutional investors is virtually nonexistent. The 1,000+ property tier (Tier 09) contains only a single property, accounting for 0.0% of the market share. This finding challenges the narrative of large corporations dominating local housing markets.

Ownership remains highly concentrated at the smaller end of the scale even when expanding to mid-size landlords. Investors with 1-100 properties collectively own 97.9% of all investor-held SFRs, leaving very little room for larger players.

This distribution reveals a highly fragmented and decentralized rental market, where the vast majority of rental homes are managed by thousands of small, local operators.

Individual investors overwhelmingly dominate ownership across nearly every portfolio size in DeKalb County. The only exception is the 'Small-medium' tier of 11-20 properties, where companies hold 41 properties, or 89.1% of the assets in that specific bracket.

This crossover point at the 11-20 property tier suggests it may be a strategic threshold where investors choose to formalize their operations under a corporate structure for liability or financial reasons.

Outside of that single tier, individual ownership is the standard. In the entry-level single-property tier, individuals own 1,875 properties (91.1%). This individual control surprisingly extends to the largest portfolios as well.

In the 'Large' tier (101-1000 properties), individual investors own 52 of the 53 properties, a staggering 98.1% share. This indicates that even the largest portfolios in the county are managed by individuals or family trusts rather than large corporations.

This pattern reinforces that the entire investor ecosystem in DeKalb County, from first-time landlords to the largest local players, is fundamentally driven by individual capital.

Geographic analysis reveals a hyper-concentration of investor ownership within DeKalb County. The 37166 zip code is the undisputed center of activity, containing 1,551 investor-owned properties, which alone accounts for 63.8% of all investor-held SFRs in the county.

However, the areas with the highest raw count of investor properties are not necessarily those with the highest market penetration. The 38569 zip code has the highest investor ownership rate at 61.7%, followed by 38582 at 58.1%. This indicates smaller, more saturated pockets of investment outside the main volume hub.

The concentration among the top regions is stark. The top five zip codes by property count (37166, 37059, 38582, 38583, and 37012) collectively contain 2,133 properties, representing 87.8% of the entire investor portfolio in the county.

This clustering suggests that investors are targeting specific neighborhoods with desirable characteristics, leading to dense pockets of rental properties rather than an even distribution across the county.

Understanding this geographic distribution is key, as market dynamics in high-saturation areas like 38569 may differ significantly from those in high-volume areas like 37166.

Transaction data reveals a clear and consistent trend of accumulation among landlords in DeKalb County. In Q1 2026, they were strong net buyers, purchasing 50 SFRs while selling only 10, resulting in a net gain of 40 properties and a 5-to-1 buy/sell ratio.

This aggressive acquisition strategy is not new. For the full year of 2025, landlords bought 157 properties and sold just 31, a net increase of 126 properties. The activity in 2024 was similar, with 165 buys and 36 sells for a net gain of 129 properties.

A critical divergence in strategy appears when segmenting by size. While the overall landlord pool is expanding its portfolio, the institutional tier (1000+ properties) is divesting. This tier was a net seller in 2024 (1 buy, 2 sells) and neutral in 2025 (2 buys, 2 sells), signaling a retreat from the market.

This creates a powerful market dynamic: small, local landlords are actively absorbing housing inventory, while the largest player is either reducing its holdings or remaining stagnant. The growth in DeKalb County's rental market is entirely fueled by smaller investors.

In Q1 2026, landlords played a crucial role in market liquidity, participating in 35.5% of all SFR transactions with 50 purchases. This level of activity highlights their importance as a consistent source of demand in DeKalb County.

The transaction volume was heavily concentrated among new and small investors. Entities in the single-property tier were responsible for 36 of the 50 landlord purchases (72%). Combined, mom-and-pop landlords (Tiers 01-04) conducted 48 transactions, or 96% of all investor buying activity.

Investors are primarily acquiring properties from the general housing market, not from each other. For the most active tier of single-property buyers, only 8.3% of their purchases (3 out of 36) were from an existing landlord. This indicates they are buying from homeowners or from new construction, adding to the overall rental housing stock.

Purchase prices varied significantly by tier, defying the expectation that larger buyers get better prices. The highest average price was paid by small landlords in the 3-5 property tier ($471,933), while the single purchase in the 'Large' tier was the lowest at $195,000. New landlords in Tier 01 paid a moderate average of $354,473.