Section 8 Fair Market Rent (FMR) for ZIP 38079 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP code 38079 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these objections with the available data.

• Will FMR $950 (metro FY 2026) cover the mortgage on a $115,586 home? The Fair Market Rent (FMR) for ZIP 38079 is set at $950 for FY 2026. To determine if this will sufficiently cover the mortgage on a property priced at $115,586, we must consider the prevailing interest rates and typical loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a $115,586 home would be approximately $550. This figure does not include property taxes, insurance, and maintenance costs, which can add significantly to the total monthly expenses. However, it's clear that the $950 FMR provides a substantial buffer above the principal and interest payments, potentially allowing for profit even after accounting for additional costs.
• Is there enough renter demand at 49.5%? With 49.5% of households renting in ZIP 38079, there is a notable presence of renters. This percentage suggests a moderate level of demand but also implies a significant portion of homeownership. The challenge for landlords and small-portfolio investors is to ensure that their properties are attractive to renters, which includes maintaining competitive rental prices and keeping up with property standards. While the data indicates a healthy level of rental activity, it's important to monitor local trends and adjust strategies accordingly to meet the needs of the rental market.
• Will vouchers keep pace with $510 market rents? The average market rent in ZIP 38079 is $510. The Section 8 voucher program aims to cover a significant portion of this cost, but whether it keeps pace depends on the specifics of the voucher amount and any adjustments made by the housing authority. As of now, the FMR of $950 should provide sufficient funds to cover the average market rent, leaving room for landlords to negotiate the remaining balance with tenants. However, it's crucial to stay informed about any changes in voucher policies and to regularly review rental agreements to ensure compliance with both market conditions and government guidelines.

The data offers insights into the potential challenges and opportunities in ZIP 38079. While there is a moderate level of renter demand and the FMR provides a reasonable cushion over market rents, investors must remain vigilant about local economic conditions and policy changes that could impact the rental market.

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.