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 ZIP code 38137 in Tennessee lacks comprehensive demographic data, including population size, percentage of renters, and median household income. This absence makes it challenging to provide a precise analysis of the tenant pool's characteristics. However, we can infer some aspects based on the available information.
The absence of specific rental percentages suggests that the ZIP code might not be predominantly renter-heavy, but without concrete figures, this remains speculative. The lack of data on median household income complicates the assessment of how typical rents compare to local incomes. Nevertheless, we can use the Fair Market Rent (FMR) as a benchmark for understanding the rental landscape in 38137.
The FMR for ZIP 38137 is set at $1300 for fiscal year 2024. This figure represents the maximum amount a Section 8 voucher holder can pay towards their rent. If the typical market rent in the area is close to or below this figure, it indicates that there could be a significant number of Section 8 tenants who can afford the rent without much strain on their income.
Without the exact market rent figures, we cannot calculate the precise percentage of local income that goes towards rent. However, if we assume that the typical market rent is around the FMR, then it suggests that rents consume a substantial portion of the average tenant's income, which is a common scenario in areas where voucher usage is prevalent.
A landlord in ZIP 38137 should anticipate a tenant pool that includes a significant number of individuals relying on Section 8 vouchers. These tenants will likely have their rent capped at or near the $1300 FMR, making it essential for landlords to ensure that their properties are up to code and competitively priced to attract these voucher holders.
To make informed decisions, landlords and small-portfolio investors must seek out additional local data to fill in the gaps regarding the rental market and tenant demographics in ZIP 38137. This will allow them to better understand the financial capabilities of potential tenants and adjust their rental strategies accordingly.
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.