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 |
To classify ZIP code 38182 in Unknown, TN, we must consider both the yield potential and the stability factors of the real estate market there. The primary figure available for analysis is the Fair Market Rent (FMR), which for the fiscal year 2024 is set at $1300. This indicates the maximum amount that a landlord can charge for a rental property under the Section 8 program. However, without specific data on the local market rent and home values, it's challenging to make a direct comparison for yield analysis.
Given the FMR of $1300, landlords participating in the Section 8 program can expect a stable source of rental income, assuming they meet all the eligibility requirements and manage their properties effectively. This suggests a moderate level of stability due to the government-backed rental payments, which typically provide consistent cash flow.
The absence of other critical data points such as the percentage of renters, days on market (DOM), and median household income makes it difficult to fully assess the stability of the market. These metrics would help understand how competitive the rental market is, how quickly properties are rented out, and whether the local population has the financial means to sustain rental demand.
In the context of the limited information provided, ZIP 38182 appears to be a steady-cashflow zone for Section 8 properties. The guaranteed rental income at $1300 per month offers a reliable yield. However, the lack of additional data prevents a comprehensive evaluation of the overall market stability, which could otherwise indicate if there are risks associated with tenant turnover or economic fluctuations.
To make a more informed decision, further research into local market conditions is advised. This includes gathering data on local rental prices, the rate of property appreciation, and the economic health of the area, which would provide a clearer picture of whether this zone leans towards higher yields or greater stability.
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.