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

In Union County, TN, investors hold a substantial 27.5% of the Single-Family Residential (SFR) market, totaling 1,633 properties out of a total of 5,937.

The market is overwhelmingly characterized by individual ownership. Individual investors own 1,529 properties, accounting for 93.6% of the investor portfolio, while company-owned properties number only 124, or 7.6%.

This individual dominance extends to entity counts, where 1,961 individual landlords operate in the market compared to just 119 company landlords. This highlights a landscape defined by small-scale real estate investing rather than large corporate presence.

Cash is the preferred acquisition method for investors in this region. Of the properties held, 1,377 were acquired with cash, dwarfing the 256 properties that are financed. This indicates a well-capitalized investor base that is less reliant on traditional lending.

The portfolio is clearly focused on rental income, with 1,618 of the 1,633 investor-owned properties identified as rented, underscoring the primary strategy of these asset holders.

Investor acquisition pricing in Union County shows a dramatic and counter-intuitive trend. In the first quarter of 2026, landlords paid an average of $494,200, a staggering $115,535 (or 30.5%) premium compared to the $378,665 paid by traditional homeowners.

This pattern of paying a premium is a recent development. In three of the last four recorded quarters, landlords have paid more than homeowners, including a 23.2% premium in Q2 2025 and a 6.7% premium in Q3 2025. This suggests investors are targeting specific, higher-value properties not pursued by typical buyers.

The current trend marks a significant reversal from early 2025. In Q1 2025, landlords achieved a deep discount of 57.2%, paying just $152,801 on average compared to homeowners at $356,971. The market has since inverted, with investors now leading on price.

Despite a lack of recent acquisitions, historical price appreciation is evident. The average acquisition price during the 2020-2023 period was $317,815, significantly lower than the prices observed in late 2025 and early 2026.

During Q4 2025, investor activity accounted for 16.3% of the SFR market in Union County, with landlords acquiring 8 of the 49 total properties sold.

The entirety of this purchasing activity was driven by small-scale investors. Mom-and-pop landlords, defined as those owning 1-10 properties, made up 100% of investor acquisitions, purchasing a total of 9 properties in the quarter.

New investors entering the market were the most active segment. Landlords in the single-property tier acquired 6 properties, representing 66.7% of all investor purchases, and were represented by 11 different entities.

Mid-size and institutional investors were completely absent from the market. No purchases were made by landlords owning more than 5 properties, reinforcing the local, small-investor character of Union County's real estate landscape.

The data clearly shows that the growth in investor ownership is fueled by new and small landlords, not by the expansion of large portfolios. Two-property landlords acquired 2 homes (22.2%) and those with 3-5 properties acquired just one (11.1%).

The investor landscape in Union County is unequivocally dominated by small landlords. Those owning 1-10 properties (Tiers 01-04) control a combined 99.3% of all investor-owned SFRs.

Single-property landlords form the bedrock of the rental market, owning 1,491 properties. This single tier accounts for 90.0% of all investor-owned housing, demonstrating that the market is driven by individuals with small-scale holdings.

In stark contrast, institutional investors with portfolios of 1,000 or more properties have a minimal presence. They own just 4 properties in the county, representing a mere 0.2% of the investor market share.

The ownership concentration at the small end of the spectrum is extreme. The first four tiers combined (1-10 properties) represent nearly the entire market, with mid-size investors (11-1000 properties) also holding a very small share.

This distribution challenges the common narrative of large corporations controlling residential housing. In Union County, the rental market is almost exclusively in the hands of local, mom-and-pop operators.

Individual investors are the dominant force across nearly all small portfolio tiers in Union County. For single-property landlords, individuals own 1,423 homes (94.5%) compared to just 83 for companies (5.5%).

This individual dominance continues as portfolios grow. In the two-property tier, individuals own 89.2% of the properties, and in the 3-5 property tier, they still hold a strong majority at 81.2%.

The transition point where corporate ownership gains a significant foothold is in the 6-10 property tier. Here, companies own 13 properties, a 40.6% share, indicating a strategic shift toward formal business structures as portfolios scale.

Even with this increase, individual owners still represent the majority (59.4%) in the 6-10 property tier. A full crossover to majority-company ownership does not occur within the most common landlord tiers in this county.

This pattern suggests that while some successful landlords incorporate as their portfolios grow, the vast majority of rental properties in the region remain under personal ownership.

Investor ownership in Union County is highly concentrated in specific zip codes. The 37807 area leads by volume, with 758 investor-owned SFRs, representing 24.8% of its housing stock.

While 37807 has the highest count, other areas show much higher saturation. The 37870 zip code has the highest investor ownership rate at 63.0%, meaning nearly two-thirds of its SFR properties are investor-owned.

High-concentration areas are common. The zip codes of 37866 (40.8% rate), 37825 (41.4% rate), and 37705 (30.8% rate) all show investor ownership rates well above the county average of 27.5%.

The top five zip codes by property count (37807, 37866, 37779, 37705, 37870) together account for a significant majority of the investor-owned properties in the county.

This geographic clustering indicates that investors are targeting very specific neighborhoods, likely driven by factors such as rental demand, property values, and local economic conditions.

Across all recent timeframes, landlords in Union County have consistently been net buyers, signaling confidence in the local market. In Q1 2026, they purchased 14 SFRs while selling only 6.

This trend of accumulation was even more pronounced in 2025. For the full year, investors added a net 75 properties to their portfolios, with 95 buys versus 20 sells.

The buying momentum has been consistent, with a net gain of 84 properties in 2024 (102 buys vs. 18 sells), indicating a multi-year period of portfolio growth for landlords in the area.

Even the small contingent of institutional investors (1,000+ properties) has been in acquisition mode. In 2025, they were net buyers, adding 3 properties to their holdings (5 buys vs. 2 sells), a contrast to their neutral position in 2024.

The sustained net buying activity from all investor segments points to a robust and growing rental market where investors are actively increasing their footprint rather than divesting.

In Q1 2026, landlords participated in 14 of the 83 total SFR transactions, capturing a 16.9% share of market activity in Union County.

Activity was exclusively concentrated among mom-and-pop landlords, who accounted for all 14 investor transactions. Institutional investors made no transactions during the quarter.

A significant pricing disparity emerged among tiers. New, single-property investors paid the highest average price at $565,982. This is substantially higher than the prices paid by two-property landlords ($146,500) and small landlords with 3-5 properties ($400,000).

This premium pricing from new entrants suggests they may be competing for more desirable, move-in ready properties, possibly against traditional homeowners, which aligns with the overall trend of landlords paying more in Q1.

Intra-investor sales were also a factor for the most active tier. Among single-property landlords, 18.2% of their acquisitions (2 of 11 transactions) were purchased from other landlords, indicating a fluid market for existing rental properties.