Location: Haywood County, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 38069 reveals a significant gap between the Fair Market Rent (FMR) set at $930 and the actual market rent of $1,032, as reported by the Census Bureau's American Community Survey (ACS). This discrepancy amounts to a difference of $102, or approximately 11%, which underscores the financial dynamics at play for landlords and small-portfolio investors.
Given that the FMR is lower than the market rent, landlords who accept housing vouchers face the challenge of renting properties below the open-market rate. The $102 shortfall per month means that voucher tenants might not cover the full cost of maintaining and operating rental units. However, this does not necessarily translate into a loss scenario for all property owners. The decision to participate in the Section 8 program should be weighed against the local economic context: ZIP 38069 has a 28.8% renter population, indicating a steady demand for affordable housing. Additionally, the median home value stands at $188,435, while the median income is $60,989, suggesting that many residents could benefit from subsidized housing options.
In this environment, accepting Section 8 vouchers can still be a viable strategy. While the monthly rent may be slightly below market rates, the stability and security provided by the government-backed payments can offset the risk associated with finding and keeping reliable tenants. Moreover, the consistent flow of rental income can contribute to a positive cash flow and potentially higher yields over time, especially when compared to the costs of vacancy and non-payment from market-rate tenants.
To summarize, the gap between the FMR and market rent in ZIP 38069 highlights the trade-offs involved in participating in the Section 8 program. Despite the lower rent, the benefits of stable occupancy and government-backed payments can still present an attractive investment opportunity for landlords and small- portfolio investors.
Data Sources: FMR data from HUD (2027). 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.