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 | $1,510 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $313,451 | 0.75% | D |
| 4BR | $2,720 | $377,171 | 0.72% | D |
| 5BR | $3,155 | $431,374 | 0.73% | D |
U.S. Census Bureau data (2024)
The ZIP code 38060, with a population of 12,552, has 13.8% of its residents classified as renters. The median household income stands at $92,338, which places it in a relatively high-income bracket. However, this ZIP code is not heavily dominated by renters; rather, it leans towards being a homeowner-dominated area.
The market rent for properties in this ZIP is $2,048, which represents approximately 22.2% of the median household income. This suggests that the typical rent eats a significant portion of the average income, indicating that rental affordability could be a concern for some tenants.
To further analyze the rental market dynamics, we compare the market rent to the Fair Market Rent (FMR), which is set at $1,850 for FY 2024. The current market rent exceeds the FMR by about $198, or roughly 10.7%, suggesting that rents in this area are higher than what is considered fair market value based on HUD standards.
The scarcity of vouchers in this ZIP can be inferred from the relatively low percentage of renters and the higher-than-FMR market rent. Landlords in 38060 should anticipate a tenant pool that is likely to include individuals who have stable employment and can afford the higher rent without relying heavily on housing vouchers. These tenants will generally be seeking higher-quality accommodations and may prioritize amenities and location over price.
In summary, ZIP 38060 is better suited for landlords looking to attract tenants with higher incomes and less dependence on housing vouchers. The expected tenant profile includes individuals capable of paying a substantial portion of their income towards rent, reflecting a market where premium features and quality can justify the higher costs.
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.