Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $263,021 | 0.5% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 38057 stands at $90,340, which provides a solid financial foundation for many households. However, when it comes to affording the market rate rent of $857, the situation becomes more nuanced. Despite the median income being higher than the market rate, the affordability gap still exists due to other living expenses.
To understand the impact on renters, consider the voucher payment standard set at $990 for fiscal year 2024. This figure exceeds the market rate by $133, indicating that voucher recipients might find it easier to secure housing within this area compared to those paying out-of-pocket at the market rate. The fact that only 21.5% of the 3,563 population are renters suggests a relatively low demand from the renter segment, potentially leading to increased competition among landlords for these tenants.
The disparity between the median income and both the market rate and voucher payment standards highlights a significant challenge for landlords. While the market rate is lower than the voucher payment, the overall rental market in ZIP 38057 is tight, with fewer potential tenants relative to the total population. This means landlords must carefully weigh their options when deciding whether to accept vouchers or focus on cash-paying tenants.
The takeaway for landlords is clear: accepting vouchers can be financially beneficial, given the higher payment standard. However, with a smaller pool of renters, landlords should also consider diversifying their tenant base to include both voucher and cash-paying residents. This strategy will help ensure a steady stream of income while navigating the competitive landscape of the rental market in ZIP 38057.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.