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 | $1,050 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,650 | $275,634 | 0.6% | F |
| 4BR | $1,900 | $364,997 | 0.52% | F |
U.S. Census Bureau data (2024)
15.1% of residents in ZIP code 38023 are renters, indicating a moderate demand for rental properties. The $1,076 market rent, as reported by the Census ACS, is a key figure for landlords to consider when setting their own rental prices. However, it's important to note that the Fair Market Rent (FMR) for the area, set at $1300 for zip FY 2024, represents a higher benchmark that can be used to gauge the potential rental value of properties. This discrepancy suggests there might be opportunities for landlords to increase their rents closer to the FMR without losing tenants.
The median home value in ZIP 38023 stands at $274,916, which provides a baseline for property values in the area. For small-portfolio investors looking to purchase properties, this figure can help assess whether the investment aligns with their financial goals and risk tolerance. Additionally, the median income of $78,568 gives insight into the economic status of the area's residents, suggesting that most households can afford the FMR for a one-bedroom unit.
Despite the lack of specific data on days on market (DOM) and the percentage of homes that have had their prices cut, the overall economic indicators paint a picture of a stable market. Landlords should focus on maintaining properties to meet or exceed the FMR while ensuring they remain competitive with the market rent. Small-portfolio investors should consider the median home value and median income when evaluating potential returns on investment.
For those interested in Section 8 participation, the gap between the FMR and market rent suggests that properties meeting the FMR criteria could attract tenants with vouchers. The verdict on Section 8 participation in ZIP 38023 is positive, given the economic stability and the potential to serve a significant portion of the local rental market.
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.