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 | $1,230 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,340 | $120,200 | 1.11% | B |
| 2BR | $1,460 | $148,584 | 0.98% | C |
| 3BR | $1,930 | $255,034 | 0.76% | D |
| 4BR | $2,220 | $340,284 | 0.65% | D |
| 5BR | $2,575 | $465,328 | 0.55% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP 38119, located in Memphis, TN, reveal a market in motion, characterized by a balance between supply and demand, though leaning slightly towards demand. The Fair Market Rent (FMR) for the area, set at $1,470 for fiscal year 2024, exceeds the Zillow Observed Rental Index (ZORI) of $1,393. This suggests that rental prices in the area are below the federal benchmark, indicating potential upward pressure on rents due to government-subsidized programs like Section 8.
A low price-cut share of 0.3% signals that property owners are generally not having to reduce their asking prices to attract buyers, which could indicate a relatively stable market. The days on market (DOM) statistic of 54 days falls within a normal range, suggesting that homes are selling without significant delays. However, the median home value of $293,078 provides insight into the affordability of the area, potentially attracting more buyers and further supporting demand-side pressures.
The 39.9% renter share in ZIP 38119 highlights the importance of rental properties in the area. A higher proportion of renters can exert long-term housing pressure, driving up demand for rental units and potentially leading to increased rental rates over time. Landlords and small-portfolio investors should take note of these dynamics, as they suggest a market where rental properties can be particularly valuable assets.
In summary, ZIP 38119 presents a market where demand is robust, supported by a significant renter population and government rental benchmarks. While the current supply meets demand, the potential for rising rental rates due to the high renter share and the proximity to FMR levels indicates a dynamic environment ripe with opportunities for those who understand the local housing landscape.
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.