Section 8 Fair Market Rent (FMR) for ZIP 38036 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 38036, located in Shelby County, Tennessee, is a suburban area that offers a mix of residential and commercial properties. It is characterized by a relatively low median home value and a significant portion of renters, making it an interesting market for real estate investors focusing on rental properties.

• Fair Market Rent (FMR) for ZIP 38036 is set at $930 per month for FY 2024. This figure reflects the government's assessment of the average rent for a two-bedroom apartment, which can serve as a benchmark for setting rents for similar units in the area.
• The market rent for the area is $686 per month according to the Census American Community Survey. This indicates that the actual rents being charged in the market are below the FMR, suggesting there might be opportunities for landlords to increase rents without pricing out potential tenants.
• Renters make up 40.7% of the population in ZIP 38036. With nearly half of the residents renting their homes, the demand for rental properties remains strong, which is beneficial for landlords and small-portfolio investors looking to capitalize on this trend.
• The median home value is not available for ZIP 38036. This lack of data could indicate a variety of factors, including a high renter occupancy rate or limited sales activity, but it does not necessarily mean the market is weak.
• The median income for the area is also not available. Without this figure, it's challenging to gauge the economic health of the residents and their ability to afford higher rents, though the FMR and market rent figures provide some insight into the affordability range.
• The Days on Market (DOM) is not available for ZIP 38036. This metric would typically give an indication of how quickly properties are being rented or sold, but its absence means we must rely on other indicators to assess the speed of the rental market.

Investors in ZIP 38036 should focus on rental properties given the strong demand from renters. The discrepancy between the Fair Market Rent and the actual market rent presents a window for increasing rental prices. However, the lack of data on median home values and median income suggests a need for further research to fully understand the financial capabilities of the local population. Overall, the area shows promise for those interested in the rental market segment, particularly in two-bedroom units where the gap between FMR and market rent is most pronounced.

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.