Section 8 Fair Market Rent (FMR) for ZIP 38053 - 2027

Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area

Investment Score for ZIP 38053

Monthly Rent (2BR)

$1,250

Median Price (2BR)

$150,293

1% Rule

0.83%

Annual Yield

9.98%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,050
1 Bedroom	$1,140
2 Bedrooms	$1,250
3 Bedrooms	$1,650
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,250	$150,293	0.83%	C
3BR	$1,650	$223,678	0.74%	D
4BR	$1,900	$327,821	0.58%	F
5BR	$2,204	$437,984	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,303

Median Household Income

$58,194

Housing Units

10,900

Renter Percentage

33.1%

Occupancy Rate

91.9%

Renter Occupied

3,316

In Millington, Tennessee (ZIP 38053), the real estate landscape is signaling a nuanced balance between stability and cautious optimism. The median home value stands at $243,112, indicating a relatively affordable market that has seen minimal downward pressure, with only 0.2% of listings having been reduced in price. This low reduction rate suggests that sellers are maintaining their asking prices, which is a strong indicator of pricing power in the short term.

The 30-day median Days on Market (DOM) further supports this assessment. A shorter DOM can imply that homes are selling quickly, often at or near the asking price. This dynamic, combined with the stable median home value, points to a market where landlords and small-portfolio investors can maintain competitive rental rates without significant risk of vacancy.

On the rental side, the Fair Market Rent (FMR) for FY 2024 is projected at $1,320, while the current market rent, as measured by ZORI, is $1,538. This discrepancy indicates that there is room for rental rates to potentially decrease towards the FMR, but it also highlights the current premium tenants are willing to pay. Landlords should be cautious about overpricing their units, given the trend towards FMR levels, but the current market suggests they have some flexibility.

For long-term investors, the setup in Millington signals a market with limited potential for rapid appreciation. The median home value and low reduction rate suggest a stable housing market rather than one experiencing significant growth. However, the current rental premiums offer a steady income stream that can offset any lack of appreciation in property values. Long-term investors should focus on the cash flow generated from rentals, rather than expecting substantial capital gains.

To summarize:

A median home value of $243,112 with minimal price reductions indicates a seller's market with pricing power.
The quick sale times reflected in the 30-day median DOM support the ability to command higher rents.
The gap between the FMR ($1,320) and the current market rent ($1,538) suggests a need for caution in setting rental rates but also an opportunity for steady income.
The overall market conditions imply limited potential for rapid appreciation, making it essential for investors to prioritize rental income over capital gains.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.