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 | $451,149 | 0.29% | F |
| 4BR | $1,510 | $607,969 | 0.25% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 38066 reveal a market where demand slightly outpaces supply. This inference is drawn from the snapshot of the Fair Market Rent (FMR) at $930 for the fiscal year 2024, which is notably higher than the market rent reported by the Census American Community Survey (ACS) at $825. The difference between these two figures suggests that there is upward pressure on rental rates, indicative of strong tenant demand relative to available units.
The low price-cut share of 0.3% further supports this view, as it indicates that landlords are not frequently having to reduce rents to attract tenants. In a market where supply exceeds demand, one would expect to see a higher percentage of price cuts to entice renters. Additionally, the median home value of $522,886 provides context on the overall economic profile of the area, suggesting that homeownership is relatively expensive and may contribute to the high renter share.
The 11.9% renter share is a critical metric for understanding long-term housing pressures. A lower-than-average renter share implies that fewer residents are choosing or able to afford renting over owning. This can translate into sustained demand for rental properties, as potential buyers may be priced out of the homeownership market. Landlords and small-portfolio investors should take note of this trend, as it suggests that rental properties will continue to be sought after in the foreseeable future.
In summary, the interplay between the FMR and market rent, alongside the low price-cut share and median home value, paints a picture of a market in motion where demand for rentals is robust. This makes ZIP 38066 an attractive location for those looking to invest in rental properties, with the potential for steady occupancy and rental income.
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.