Location: Dyer County, TN | Metro: Crockett County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 38034 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $860, while the Census ACS reports the average market rent at $683. This discrepancy amounts to a difference of $177, or approximately 26%.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the gap to increase their rental yields. The higher FMR means that voucher holders can afford to pay more than the current market rate, which benefits property owners by providing an opportunity to raise rents closer to the FMR without losing tenants. Given the relatively low percentage of renters at 16.2%, there is less competition for rental units, making it easier to attract voucher tenants who are willing to pay the higher rates.
The median home value in the area is $180,378, and the median household income is $47,241. These figures suggest that while homeownership is accessible, many residents still rely on rental properties due to financial constraints. The higher FMR thus serves as a buffer, allowing landlords to potentially charge more than the typical market rent without pricing out a significant portion of the tenant pool.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. Landlords must ensure that their properties meet HUD standards, which can involve additional maintenance costs. Moreover, the payment process for vouchers can be slower compared to collecting rent directly from tenants paying market rates. Despite these challenges, the financial incentive of closing the $177 gap makes the acceptance of voucher tenants a strategic choice for maximizing returns.
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.