Location: Memphis, TN | Metro: Memphis, TN-MS-AR 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 | $860 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $146,410 | 0.7% | D |
| 3BR | $1,350 | $219,066 | 0.62% | D |
| 4BR | $1,550 | $285,014 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 38019, located in Covington, TN, stands out within Tipton County due to its unique demographic and economic profile. With a population of 15,760 residents, 39.1% of whom rent their homes, it reflects a moderate demand for rental properties. The median income in the area is $61,826, which is relatively stable and indicates a middle-class community. The median home value of $208,720 suggests that homeownership is accessible but not overly common, given the high percentage of renters.
Turning to the voucher economics, the Fair Market Rent (FMR) for ZIP 38019 for fiscal year 2024 is set at $1,030. This figure closely aligns with the market rent, known as ZORI (Zillow Observed Rent Index), which is $1,038. For landlords and small-portfolio investors, this means that Section 8 vouchers can effectively cover the cost of renting a property in this area without significant financial strain. However, it also implies that there is little room for substantial profit margins beyond the voucher amount, as the market rent is only slightly higher.
Based on the data signature of ZIP 38019, the area reads as stable. The slight gap between the FMR and market rent suggests a balanced market where the housing needs of low-income residents are met, and landlords receive fair compensation through the voucher program. The moderate rental rate and median home value indicate a community that is neither experiencing rapid growth nor decline, making it a reliable investment option for those looking to enter or remain in the rental market in Covington, TN.
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.