Location: Humphreys County, TN | Metro: Hickman County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 37078 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,440, while the Census ACS data indicates that the market rent stands at $1,692. This creates a significant gap of $252, or approximately 17.3%, between what landlords can charge and what the government will subsidize through the Section 8 program.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the financial implications of accepting Section 8 tenants. The difference of $252 per unit represents a reduction in potential rental income compared to the open market. However, this does not necessarily mean a loss, as the stability of government-backed payments can offset the lower rent rate.
In ZIP 37078, where 44.5% of residents are renters, the demand for affordable housing is high. The median home value is $329,237, which is beyond the reach of many households given the median income of $54,219. Therefore, Section 8 vouchers serve as a critical lifeline for these families, enabling them to afford decent housing despite their income constraints.
The cost of housing voucher tenants below open-market rates means that landlords must weigh the benefits of guaranteed, consistent rent against the opportunity cost of higher market rents. In a scenario where vacancy rates are low and the competition for tenants is fierce, the predictability of Section 8 payments can be an attractive option. Additionally, the government's role in covering the rent ensures a steady stream of income, which is particularly beneficial in a volatile market.
To summarize, the gap between the FMR and market rent in ZIP 37078 presents a clear challenge for landlords. While the FMR is $1,440, market conditions suggest a rent of $1,692, creating a shortfall of $252 per unit. This shortfall represents a 17.3% reduction in potential income. Landlords should consider the broader context of high rental demand and limited affordability when deciding whether to accept Section 8 tenants.
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.