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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $281,806 | 0.5% | F |
| 3BR | $1,860 | $463,848 | 0.4% | F |
| 4BR | $2,150 | $645,847 | 0.33% | F |
| 5BR | $2,494 | $893,242 | 0.28% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 38028, Eads, Tennessee, is set at $1530 for fiscal year 2024. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 program, meaning it's the maximum amount HUD will pay landlords for renting units to eligible tenants. However, this is not the rent you'll charge your tenants directly.
In comparison, the average rent for the area, according to Census American Community Survey (ACS) data, is $1,253. This indicates that the FMR is higher than the typical market rate, providing landlords with a competitive edge when participating in the Section 8 program. The difference between the FMR and the local average can help cover maintenance costs and provide a buffer against potential delays in payments.
With a 5.3% renter share in Eads, there is a moderate demand for rental properties. To put this into perspective, if we consider the total number of households in the area, roughly 5.3% of these households are likely to be interested in renting through the Section 8 program. This translates to a significant pool of potential tenants, ensuring steady occupancy rates.
The total acquisition cost for a Section 8 rental property in ZIP 38028 is approximately $604,316. This figure represents the average value of homes in the area, which can help you estimate the budget needed to purchase a property suitable for Section 8 tenancy. Keep in mind that this is an average; actual costs can vary depending on the condition and location of the property.
Before proceeding with your first Section 8 rental in Eads, it is crucial to verify that the property meets all local housing quality standards. HUD requires that all units rented under the Section 8 program must pass a thorough inspection to ensure they are safe, decent, and sanitary. This step is essential to avoid any future complications and to ensure compliance with federal regulations.
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.