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

In Johnson County, investors hold a significant 34.9% of the single-family residential market, totaling 1,817 properties. This demonstrates a high level of real estate investing activity relative to the total market size of 5,209 SFRs.

The ownership structure is overwhelmingly dominated by 2,357 individual landlords, who control 1,711 properties, or 94.2% of the investor-owned portfolio. In contrast, 123 company landlords own just 127 properties, making up the remaining 7.0%, which underscores the market's grassroots, mom-and-pop character.

A strong preference for cash transactions is evident, with 1,448 properties (79.7% of the portfolio) owned free and clear. Financed properties are far less common, with only 369 properties carrying a mortgage, suggesting that many local investors operate with low leverage.

The portfolio is almost entirely focused on rental income, with 1,802 of the 1,817 properties classified as non-owner-occupied. This near-100% rental rate confirms that these properties are active investments rather than secondary homes or other non-rental uses.

The ratio of landlords to properties reveals a highly fragmented market. With 2,480 total landlords and 1,817 properties, the average portfolio size is less than one property per entity, indicating a large number of co-ownerships and a market defined by small-scale participants rather than large consolidators.

In a notable market shift during Q1 2026, landlords paid an average price of $336,556, which was $41,074, or 13.9%, more than traditional homeowners who paid $295,482. This premium suggests heightened competition among investors for limited inventory, forcing them to outbid owner-occupant buyers.

This trend represents a dramatic reversal from the preceding year. For example, in Q2 2025, landlords enjoyed a substantial 30.9% discount, paying $209,214 while homeowners paid $302,662. The shift from a deep discount to a significant premium in less than a year points to rapidly changing market dynamics and increased investor demand.

The pricing volatility is a key characteristic of the Johnson County market. The landlord-homeowner price gap swung from a $94,908 landlord discount in Q1 2025 to a $41,074 landlord premium in Q1 2026, a total swing of over $135,000 in relative purchasing power.

Despite the recent Q1 premium, long-term acquisition data shows a general upward trend in prices for all buyers. The average landlord purchase price during the 2020-2023 period was $236,829, which rose to $271,654 in 2024, indicating consistent market appreciation over the past several years.

Landlords captured a significant portion of the market in Q4 2025, purchasing 12 of the 35 total SFR properties sold, a market share of 34.3%. This high rate of acquisition shows that investors remain a powerful force in Johnson County's housing market.

The most striking trend in Q4 was that 100% of landlord acquisitions were made by mom-and-pop investors in the smallest tiers. Specifically, all 12 properties were purchased by single-property landlords (Tier 01), indicating that market growth is fueled by new investors or existing ones adding their very first rental property.

These 12 properties were acquired by 16 distinct entities, pointing to co-ownership arrangements among new investors. This pattern suggests a collaborative, small-scale approach to market entry rather than purchases by single, larger entities.

The purchasing data reveals a complete absence of larger investors. Mid-size landlords (Tiers 05-08) and institutional investors (Tier 09) both recorded zero purchases in Q4. This reinforces the narrative that Johnson County is not a target for large-scale corporate investment but rather a haven for local, individual landlords.

The concentration of activity in Tier 01 signifies a healthy pipeline of new rental housing stock being created by grassroots investors. This contrasts sharply with national headlines that often focus on acquisitions by large corporate entities.

The ownership structure in Johnson County is defined by the absolute dominance of small landlords. Investors with 1-10 properties (Tiers 01-04) collectively own 99.8% of all investor-held SFRs, leaving virtually no market share for larger players.

Single-property landlords (Tier 01) form the backbone of the rental market, owning 1,648 properties. This represents 89.3% of all investor-owned housing, making the first-time or single-home investor the most critical participant in the local market.

The market shows a steep drop-off in ownership as portfolio sizes increase. After the single-property tier, two-property landlords hold just 5.1% of the market (95 properties), and those with 3-5 properties hold 4.7% (87 properties).

There is no institutional investor footprint in Johnson County. The 1,000+ property tier (Tier 09) holds 0.0% of the market, challenging the common narrative of large corporations buying up residential housing. Even mid-size and large landlords are statistical anomalies, with portfolios over 10 properties accounting for just 0.2% of the total.

This distribution indicates a highly fragmented and decentralized rental market. The reliance on thousands of individual small landlords, rather than a few large ones, shapes the local housing landscape, potentially leading to more direct landlord-tenant relationships and a market that is less susceptible to national corporate strategies.

In Johnson County, individual investors are the primary owners not just overall, but within every distinct portfolio tier. In the largest single-property tier, individuals own 1,569 of the 1,648 properties (94.1%).

This pattern of individual dominance continues even as portfolio sizes grow. In the two-property tier, individuals own 90.5% of homes, and in the 3-5 property tier, they own 83.9%. This demonstrates a strong local preference for personal ownership over corporate structures for rental properties.

A key finding is the complete absence of a 'crossover point' where company ownership surpasses individual ownership. This is highly unusual, as most markets see companies become the majority owners in tiers above 10 or 20 properties. Here, individuals remain the clear majority in all meaningful tiers.

Even in the small 6-10 property tier, companies own only 3 of the 12 properties (25.0%). The data shows only one company in the 21-50 property tier, which is co-owned with an individual, further cementing the market's non-corporate nature.

This ownership structure suggests that the local property ownership landscape is driven by local capital and personal investment strategies rather than institutional or out-of-state corporate interests. The rental housing supply is managed almost exclusively by individuals who live in or have strong ties to the community.

Geographic analysis reveals a significant concentration of investor-owned properties in Johnson County. The zip code 37683 is the clear epicenter of activity, containing 1,110 investor-owned SFRs, which accounts for over 61% of the entire investor portfolio in the county.

While 37683 leads in raw count, other zip codes show even higher market penetration. In 37640, investors own 44.0% of the 407 SFRs, making it the most investor-saturated area by percentage. This highlights that certain neighborhoods are particularly attractive to rental property owners.

High investor ownership is a widespread characteristic of the county, not just an isolated phenomenon. The top five zip codes by ownership rate all have investor penetration above 30%, including 37691 (40.2%), 37680 (37.8%), and 37688 (35.0%).

The top regions for investor ownership by count and by percentage are largely the same, indicating a strong correlation between where investors are active and where they constitute a major part of the market. This suggests targeted, concentrated investment strategies rather than a diffuse, county-wide approach.

This level of concentration can have significant impacts on local housing markets, influencing rental availability, home prices, and the balance between owner-occupants and renters in specific communities.

Transaction data shows that landlords in Johnson County are consistently and aggressively accumulating properties. In the first quarter of 2026, they demonstrated a 4-to-1 buy-to-sell ratio, with 16 purchases and only 4 sales, resulting in a net gain of 12 properties for the investor community.

This behavior is not new; it follows a strong historical pattern. Throughout 2025, landlords purchased 133 properties while selling just 14, and in 2024, they bought 96 and sold 13. This sustained net-buying activity signals long-term confidence in the local rental market.

In a direct contrast to the broader market, the sole data point for institutional investors (1,000+ tier) shows them as net sellers. In 2024, they sold two properties while only acquiring one, indicating divestment from the market, albeit on a very small scale.

The wide gap between the behavior of small, local landlords (accumulating) and the institutional tier (divesting) highlights two completely different market strategies at play. The growth in Johnson County's rental market is being driven from the bottom up by mom-and-pop investors.

The high volume of acquisitions compared to dispositions suggests that investors are employing a buy-and-hold strategy, contributing to the long-term rental housing supply rather than engaging in short-term flipping.

In Q1 2026, landlords were a significant force in the transaction market, participating in 16 of the 58 total SFR transactions, a share of 27.6%. This level of activity underscores their role in driving market liquidity.

All landlord transaction activity was concentrated at the entry level of the market. The 16 purchases were all made by single-property (Tier 01) investors, reaffirming that market growth is coming from new entrants rather than portfolio expansion by established players.

These Tier 01 investors paid an average purchase price of $336,556 in Q1. This price point, which was higher than the homeowner average for the quarter, suggests these new landlords are competing aggressively for available properties.

A notable pattern is the degree of inter-landlord trading. Of the 16 properties purchased by investors, 3 were bought from other landlords. This 18.8% rate of landlord-to-landlord sales points to a mature and active secondary market where investors can efficiently trade assets among themselves.

The complete lack of transaction activity from mid-size or institutional tiers in Q1 further solidifies Johnson County as a market defined by small, independent investors making strategic, one-off purchases.