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 38175 in the Memphis, TN-MS-AR HUD Metro FMR Area reveals several key points regarding the viability of Section 8 investments.
The rent math does not work effectively due to the lack of available market rent data. The Fair Market Rent (FMR) for the area is set at $1300 for fiscal year 2024, but without comparative market rent figures, it's impossible to determine if this rate adequately covers the costs associated with renting properties under the Section 8 program.
Acquisition affordability is unclear given the absence of specific data on median home values, days on market (DOM), and the percentage of homes that have been subject to price cuts. These metrics are crucial for assessing whether buying properties in ZIP 38175 would be financially feasible for landlords and small-portfolio investors.
Tenant demand is also uncertain because of the unavailability of population data and the percentage of renters in the area. Understanding these factors is essential to gauge the potential occupancy rates and the stability of rental income.
Verdict: Investing in Section 8 properties within ZIP 38175 cannot be recommended with confidence due to insufficient data on market rents, median home values, and days on market. The FMR of $1300 must be scrutinized against actual market conditions to ensure financial sustainability. Without concrete figures on population and renter share, the demand for such properties remains speculative. Further research is necessary to make an informed decision about the potential returns and risks associated with this investment strategy in the specified area.
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.