Location: Hickman County, TN | Metro: Hickman County, TN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $311,340 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 37098 are significant. Tenant turnover is a major concern, especially when considering the market rent of $823 compared to the Federal Market Rent (FMR) of $930 for the fiscal year 2026 in the metropolitan area. This indicates that tenants might be more likely to leave once their vouchers expire, seeking higher rental subsidies elsewhere. Landlords should prepare for frequent changes in occupancy.
Vacancy exposure is another issue. The Days on Market (DOM) for the area is not available, which suggests a lack of data on how quickly homes are rented out. This uncertainty can lead to extended periods of vacancy, during which landlords will not receive rental income. While the exact rate of vacancy cannot be determined without DOM data, it's prudent for investors to consider the possibility of prolonged vacancies.
Deferred maintenance is also a risk factor. With a typical home value of $265,178 and a median income of $63,371, there is a notable disparity between property values and residents' ability to afford upkeep. This could result in higher maintenance costs for landlords who must ensure their properties meet the standards required by the Section 8 program.
However, these risks are offset by the high concentration of renters in the area, with 29.7% of the population being renters. High renter density often translates into increased demand for housing vouchers, making ZIP 37098 a prime location for landlords willing to participate in the Section 8 program. The combination of these factors suggests that while there are challenges, the potential for steady tenant demand exists.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.