Location: Dyer County, TN | Metro: Dyer County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 38047 reveals a significant opportunity for landlords and small-portfolio investors through the Federal Rent Supplement program known as Section 8. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. However, the market rent in this area is currently not available, indicating a potential discrepancy between what the government deems fair and what the open market demands.
Given that 100.0% of the residents are renters and the median household income stands at $58,438, the reliance on rental properties is high. This demographic suggests that many residents will be seeking assistance through housing vouchers, making it essential for landlords to understand the implications of the FMR figure.
In ZIP 38047, the lack of market rent data means we cannot calculate the exact gap in dollars and percentage between the FMR and the actual market rate. However, if the FMR of $930 is higher than the current market rent, this creates a yield play scenario for landlords. Voucher tenants would effectively subsidize rents that might otherwise be too low to cover operating costs and generate a profit, ensuring a steady and reliable income stream.
Conversely, if the market rent is higher than the FMR, landlords accepting Section 8 tenants will have to absorb the difference between the FMR and the market rate. This could mean a loss per unit unless the landlord can manage expenses efficiently or leverage other income sources. For example, if the market rent were hypothetically $1,200, landlords would only receive $930 from the voucher program, resulting in a shortfall of $270 per unit.
Landlords should consider the broader economic context of ZIP 38047, where the median home value is not available, but the high percentage of renters and relatively modest median income of $58,438 suggest a market sensitive to price fluctuations. Accepting Section 8 tenants can provide a stable occupancy rate and predictable cash flow, which are critical for long-term investment strategies.
To make informed decisions, landlords and investors must weigh the benefits of guaranteed tenants against the potential financial constraints posed by the FMR. Understanding these dynamics will help navigate the unique challenges and opportunities presented by the rental market in ZIP 38047.
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.