Location: Hardeman County, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,340 |
| 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 ZIP code 38039 is situated in a modest-sized neighborhood with a population of 1,305 residents. It has a rental market presence of 22.6%, indicating a smaller but still significant portion of the community relies on renting their homes. The median household income here stands at $39,020, which is relatively low compared to national averages, suggesting a primarily middle to lower-middle class demographic. The median home value in the area is $151,643, reflecting an affordable housing market.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 38039 for fiscal year 2024 is set at $950. This figure is notably higher than the reported market rent of $806, based on Census ACS data. The disparity between the FMR and the actual market rent presents a unique opportunity for landlords and investors, as it suggests that there is potential for increasing rents without significantly deterring tenants who qualify for Section 8 vouchers.
Given these conditions, ZIP 38039 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's lower median income aligns closely with the Section 8 program's target demographic, ensuring a stable tenant base with government-subsidized rent payments. Meanwhile, value-add buyers can leverage the gap between the FMR and current market rents to improve properties and command higher rental rates, all while remaining within the bounds of the Section 8 payment standards.
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.