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 | $1,030 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $274,701 | 0.59% | F |
| 4BR | $1,860 | $358,651 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 38058 is situated in a predominantly suburban neighborhood with a population of 10,303. The area has a relatively low percentage of renters at 15.2%, indicating a community where homeownership is prevalent. The median household income stands at $83,750, reflecting a middle to upper-middle-class demographic. The median home value in this ZIP is $286,104, which suggests a stable and potentially growing housing market.
Transitioning to the economic realities of renting in this area, the Fair Market Rent (FMR) for ZIP 38058 as of the fiscal year 2024 is set at $1,330. In contrast, the actual market rent based on Census ACS data is lower at $1,109. This discrepancy between the FMR and the market rent can be advantageous for landlords and investors who participate in the Section 8 program, as it allows them to potentially charge rents closer to the FMR while still being attractive to tenants.
Given these figures, ZIP 38058 would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means they can receive a subsidy that covers a significant portion of their rental income without having to actively manage the property beyond compliance with HUD standards. For value-add buyers, the opportunity exists to improve properties and charge rents closer to the FMR, thereby increasing profitability over time. Both strategies benefit from the strong underlying economic indicators of the area, including its median income and home values.
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.