Location: Perry County, TN | Metro: Hickman County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 37097 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,040, whereas the Census ACS reports the average market rent at $782. This creates a gap of $258, which is approximately 33% of the FMR.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors should consider voucher tenants as a strategic yield play. The higher guaranteed income from the Section 8 program can offset the lower rental rates found in the open market, providing a consistent revenue stream that is less susceptible to vacancy risks.
The ZIP code 37097 has 21.0% of its residents as renters, indicating a moderate demand for rental properties. With a median home value of $165,960 and a median income of $50,658, the financial landscape suggests that many residents may find it challenging to afford homeownership, making them prime candidates for the rental market, particularly those relying on housing vouchers.
While the FMR provides a benchmark for rental rates, it's important to note that accepting voucher tenants below the open-market rate can introduce operational challenges. Landlords must ensure they comply with HUD standards and maintain the property to meet voucher requirements. However, the trade-off is a stable tenant base with reduced turnover, which can be beneficial for long-term investment strategies.
To summarize, the $258 or 33% gap between FMR and market rent makes ZIP 37097 an attractive location for landlords looking to leverage the Section 8 program. Despite the operational considerations, the potential for a steady yield and a reliable tenant pool can outweigh the initial costs and efforts required to participate in the voucher system.
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.