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Daycare Centers Market: ZIP 38120

Opportunity Score

73 / 100 Good

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

Market Summary

ZIP 38120 is an urban area with moderate foot traffic. with a population of 13,249 and household incomes well above the national median ($119,309). There are 6 daycare centers operations in ZIP 38120.

Area Profile

13,249

Population

$119,309

Median Income

+60% vs. national

Urban

Area Type

13.6/20

Foot Traffic

Walkable

Median Age: 45.0 — older demographic, may prefer sit-down options.

College-Educated: 53.9% — strong appetite for artisan/specialty food.

Competition

Daycare Centers and related businesses in ZIP 38120.

Daycare Centers

Moderate — proven market

4.5 per 10K residents

Schools

2.3 per 10K residents

What this means: Daycare Centers are 66.7% of the relevant market in ZIP 38120 (6 vs. 3 related businesses). Well-established market — differentiation is non-negotiable.

Operating Costs

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

$1,680

2BR Fair Market Rent

$1,552

Median Gross Rent

$420 K

Median Home Value

Bank Branches

$2.9 M deposits

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.
The median income here is $119,309. That gives you pricing room most markets don't offer. Don't underprice.