Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $188,032 | 0.85% | C |
| 2BR | $1,750 | $303,166 | 0.58% | F |
| 3BR | $2,310 | $383,411 | 0.6% | D |
| 4BR | $2,660 | $594,794 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 38103 is situated in a vibrant part of Memphis, Tennessee, characterized by a diverse and dynamic community. With a total population of 14,534, it is predominantly a rental market where 68.3% of residents are tenants. The median household income stands at $76,278, indicating a middle-class area that supports various economic activities. The median home value in the neighborhood is $324,353, reflecting a mix of affordable and moderate-priced housing options.
In terms of rent economics, the Fair Market Rent (FMR) for ZIP 38103 in fiscal year 2024 is set at $1,950. This is notably higher than the market rent, which is measured at $1,513 (ZORI). This discrepancy suggests that there is potential for landlords to increase their rental income through participation in the Section 8 program, given that the government subsidy aims to cover the gap between the market rate and the FMR.
The characteristics of ZIP 38103 make it suitable for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a passive investment approach, the strong tenant demand and the availability of Section 8 vouchers can ensure steady cash flow without the need for extensive property management. On the other hand, for investors interested in actively improving their properties to command higher rents, the area's median income levels and median home values indicate a market where such investments could be rewarded.
Summary:
The data points towards a thriving neighborhood with a significant portion of renters, making it an attractive location for Section 8 investors. Whether you're looking for a low-maintenance investment or a more active role in property enhancement, ZIP 38103 offers opportunities to capitalize on its economic dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.