Section 8 Fair Market Rent (FMR) for ZIP 38135 - 2027

Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area

Investment Score for ZIP 38135

Monthly Rent (2BR)

$1,830

Median Price (2BR)

$181,279

1% Rule

1.01%

Annual Yield

12.11%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,670
2 Bedrooms	$1,830
3 Bedrooms	$2,420
4 Bedrooms	$2,790
5 Bedrooms	$3,236
6 Bedrooms	$3,624
7 Bedrooms	$3,914
8 Bedrooms	$4,110

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,830	$181,279	1.01%	B
3BR	$2,420	$258,144	0.94%	C
4BR	$2,790	$354,240	0.79%	D
5BR	$3,236	$397,154	0.81%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,317

Median Household Income

$97,282

Housing Units

11,068

Renter Percentage

18.6%

Occupancy Rate

98.0%

Renter Occupied

2,014

To determine if a landlord should invest in ZIP 38135 (Bartlett, TN) for Section 8 properties, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1820 cover the debt service on a property valued at $298,453?

No: The FMR does not sufficiently cover the debt service on a property of that value. Landlords should consider properties with lower purchase prices or seek areas where the FMR is higher.
Yes: Proceed to Step 2.

Step 2: How does the Zillow Observed Rent Index (ZORI) of $1,816 compare to the FMR?

ZORI is below FMR: This indicates that market rents are lower than the FMR, which means landlords can expect to receive the higher FMR rate from Section 8 tenants. Proceed to Step 3.
ZORI is equal to or above FMR: The market rent is competitive or exceeds the FMR, making it less advantageous for landlords to rely solely on Section 8 tenants. Consider diversifying your tenant mix or look into other ZIP codes.

Step 3: Are the 18.6% of renters combined with a 32-day Days on Market (DOM) sufficient to meet demand?

It depends: With 18.6% of the population renting and an average DOM of 32 days, there is moderate demand. However, the decision hinges on the landlord's risk tolerance and investment strategy. If the landlord is willing to accept a slightly longer time to find tenants, then the ZIP code could be viable. Otherwise, the landlord might prefer areas with higher rental demand and shorter DOM times.

The analysis of ZIP 38135 shows that while the FMR covers debt service and is higher than the ZORI, the rental demand is only moderately strong. Therefore, landlords must weigh their tolerance for slightly longer vacancy periods against the benefits of receiving the FMR rate from Section 8 tenants.

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.