Location: Lauderdale County, TN | Metro: Haywood County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
ZIP Code 38037, located in Gates, TN within Lauderdale County, is an ideal candidate for inclusion in a Section 8 portfolio strategy. The median home value here stands at $88,700, which is significantly below the metropolitan Fair Market Rent (FMR) of $930 for FY 2026. The difference between the FMR and the median home value indicates a strong potential for cash flow generation.
The median income for residents in ZIP Code 38037 is $51,976, making it a suitable location for properties that cater to low-income tenants who qualify for Section 8 assistance. With 35.9% of households being renters, there is a substantial demand for rental properties in this area.
Given the spread between the FMR and the market rent, ZIP Code 38037 serves best as a cash-flow anchor. The FMR of $930 for FY 2026 is considerably higher than the market rent, allowing landlords to maintain positive cash flow even when relying on Section 8 vouchers. Additionally, the median home value is much lower than the FMR, providing a buffer against potential increases in rental costs.
While there is limited data on appreciation potential and diversification benefits, the strong cash flow generation makes ZIP Code 38037 a reliable choice for landlords and small-portfolio investors looking to secure steady income streams through Section 8 properties.
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.