Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
The analysis of ZIP code 38083 in Memphis, TN, reveals several key points that are crucial for landlords and small-portfolio investors.
The Federal Market Rent (FMR) for ZIP 38083 in fiscal year 2024 is set at $1300. This figure is essential for determining if the rent math works favorably for Section 8 properties. However, without specific data on the market rent, it's challenging to directly compare these values. The FMR provides a baseline for what the government considers reasonable for housing assistance, but the actual viability of this rent level depends on local market conditions.
Regarding property acquisition affordability, the lack of data on median home value, days on market (DOM), and the percentage of price reductions (price-cut share) makes it difficult to provide a precise assessment. These metrics would typically indicate how easy or hard it is to purchase a property within the area at a price that allows for profitable Section 8 tenancy. Without this information, potential investors cannot accurately gauge the cost and time required for acquiring a suitable property.
Tenant demand is another critical factor. With no specific population data or the percentage of renters in ZIP 38083, it's unclear how many potential tenants might be interested in Section 8 properties. Tenant demand is vital because it ensures that there will be occupants willing to pay the subsidized rent, which is necessary for maintaining a steady income stream from the property.
Verdict: Investing in Section 8 properties in ZIP 38083 is possible given the established FMR of $1300, but without comprehensive local market data, including median home values, days on market, price-cut shares, and tenant demographics, making an informed decision is challenging. Landlords and investors should seek out detailed local real estate and demographic reports to fully understand the financial feasibility and demand for such investments.
Data Sources: FMR data from HUD (2027).
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.