Location: Obion County, TN | Metro: Dyer County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 38080 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $940 per month for FY 2026. This figure represents the maximum amount that the housing authority will pay to landlords participating in the program. However, it's important to understand how this payment is structured.
The local market rent for a two-bedroom unit, based on Census ACS data, is $583 per month. This indicates that the SAFMR is significantly higher than the average market rent, which can be beneficial for landlords.
A Section 8 voucher is designed to cover the difference between the market rent and the tenant's portion of the rent. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If the tenant's portion plus the utility allowances does not reach the SAFMR of $940, the housing authority will make up the difference to ensure the landlord receives the full SAFMR amount.
To illustrate, let's assume a tenant's portion of the rent is $200 and the utility allowance is $100. In this case, the total subsidy would be $640 ($940 - $300), making the landlord's total monthly income $940. This means that even if the market rent is lower, the landlord still receives the SAFMR amount.
The utility allowance is an additional payment made directly to the landlord to help cover the cost of utilities. It is determined by the size of the unit and the number of occupants. For a two-bedroom unit, this allowance can range but is typically around $100 to $150 per month.
In ZIP code 38080, the SAFMR is higher than the local market rent, leading to a surplus for landlords. Specifically, the typical surplus for a two-bedroom voucher reimbursement is $357 per month ($940 - $583).
This economic structure ensures that landlords receive a stable and often higher-than-market rental income when renting to tenants with Section 8 vouchers. It also means that landlords do not need to worry about the fluctuating market rents, as they are guaranteed the SAFMR amount for the duration of the lease.
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.