Location: Jackson County, TN | Metro: Smith County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 37030 (Carthage, TN) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $860 cover the debt service on a $274,798 property?
Yes. If your property's debt service is less than $860 per month, then the FMR will cover it. Debt service includes mortgage payments, property taxes, insurance, and maintenance costs. For example, if the monthly debt service on a $274,798 property is $750, the FMR comfortably covers it, making the investment viable.
No. If your property's debt service exceeds $860 per month, the FMR will not fully cover your expenses. In such a case, unless you can find additional sources of income or reduce your debt service, investing in Carthage, TN, under Section 8 would be financially unwise.
2) How does the market rent of $962 compare to the FMR?
Above FMR. The market rent of $962 is higher than the FMR of $860, indicating that there is potential to earn more from private tenants than what is guaranteed by Section 8. This suggests that while Section 8 could be an option, it might be more profitable to target non-Section 8 tenants.
At or Below FMR. If the market rent were equal to or lower than the FMR, it would mean that Section 8 rates are competitive or better than what you could expect from the broader rental market. This scenario makes Section 8 a more attractive option for securing steady, government-backed rental income.
3) Is the rental demand sufficient given that 29.6% of residents are renters and the days on market (DOM) is not available?
It depends. With 29.6% of residents renting, there is a moderate level of demand. However, the lack of DOM data means we cannot assess how quickly properties are rented out. To make a definitive decision, consider the following:
If you can verify that rental listings in Carthage, TN, are typically filled within a reasonable timeframe (e.g., 30 days), the demand is likely sufficient to support your investment.
If properties take longer to rent (e.g., over 60 days), it indicates a slower market, which could affect your ability to secure tenants promptly and maintain consistent cash flow.
In conclusion, the viability of a Section 8 investment in ZIP 37030 hinges on whether the FMR of $860 can cover your debt service and if the market rent of $962 makes Section 8 rates less attractive. The rental demand is moderate but requires further investigation into the speed at which properties are rented to confirm its adequacy.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.