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Daycare Centers Market: ZIP 38106

Opportunity Score

46 / 100 Fair

Based on walkability, population density, income levels, and local business competition.

Market Summary

ZIP 38106 is an urban area with moderate foot traffic. with a population of 21,827 and household incomes below the national median ($29,818). There are 5 daycare centers operations in ZIP 38106.

Area Profile

21,827

Population

$29,818

Median Income

-60% vs. national

Urban

Area Type

13.1/20

Foot Traffic

Walkable

Median Age: 42.2 — older demographic, may prefer sit-down options.

College-Educated: 8.4% — value-focused market, keep prices competitive.

Competition

Daycare Centers and related businesses in ZIP 38106.

Daycare Centers

Low competition — room to establish

2.3 per 10K residents

Schools

2.3 per 10K residents

What this means: Daycare Centers are 50.0% of the relevant market in ZIP 38106 (5 vs. 5 related businesses). Well-established market — differentiation is non-negotiable.

Operating Costs

Local cost levels affect space, labor, and operating expenses.

$1,180

2BR Fair Market Rent

$915

Median Gross Rent

$66 K

Median Home Value

Tips for Starting a Daycare Business in Tennessee

Licensing comes first. State childcare licensing takes 3-6 months in most states. Start that paperwork before you sign a lease.
Staff-to-child ratios are set by law and they dictate your entire cost structure. Know your state's ratios before building a financial model.
Location matters more than marketing. Parents pick daycares within 10 minutes of home or work. Proximity to commuter routes beats a nice website.
Insurance costs $3,000-$10,000/year depending on your state and capacity. Get quotes early. Some carriers won't cover home-based operations.
Median income sits at $29,818. Price sensitivity is real. Build your model around volume or keep overhead minimal.