Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 38076, located within the Memphis, TN-MS-AR HUD Metro FMR Area, presents a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1140 per month for fiscal year 2024. This amount is significantly higher than the reported market rent of $738, based on Census ACS data.
Voucher tenants in this region will cashflow positively at the HUD FMR, meaning landlords can expect a steady income without financial strain. Even when considering standard operating costs, the difference between the FMR and the actual market rent provides a buffer that ensures profitability. The median home value in the area stands at $365,022, which gives a rent-to-price ratio of approximately 0.31%. This ratio indicates that rental income is relatively low compared to the cost of homeownership, suggesting that buying a property might be more attractive than renting for those seeking to maximize returns on investment.
While the median days on market (DOM) and the percentage of homes that experience price cuts are currently unavailable, these metrics would typically influence the decision-making process regarding whether to invest in rental properties or purchase homes for long-term ownership. In the absence of these figures, it's important to focus on other key indicators such as vacancy rates and local economic trends to gauge the stability and potential growth of the market.
The strongest angle for investors in this market is cashflow. Given the disparity between the HUD FMR and the market rent, landlords can secure reliable income streams while maintaining a competitive edge over the local rental market. This positive cashflow scenario is particularly appealing in an environment where the rent-to-price ratio suggests homeownership may not offer immediate financial benefits over rental investments.
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.