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 economics of Section 8 housing in ZIP code 38183, located in Memphis County, Tennessee, operate under specific guidelines that affect both landlords and tenants. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1300 per month. This SAFMR figure is crucial because it is specifically tailored to reflect the rental market conditions of this particular ZIP code, ensuring that the rates are as accurate as possible to the local market.
A common misconception among landlords is that they will receive the full SAFMR amount from the Housing Choice Voucher program. However, the actual reimbursement is calculated based on the tenant's portion of the rent plus any applicable utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a household eligible for Section 8 assistance, the tenant's contribution would be around $390 per month, which is 30% of the SAFMR. The remaining 70%, or $910 per month, would be covered by the federal government.
In addition to the base rent, utility allowances can also be included in the total reimbursement. These allowances vary but generally cover costs such as electricity, water, and gas. For ZIP 38183, the utility allowance might bring the total reimbursement closer to the SAFMR, depending on the specifics of the voucher and the tenant's situation.
Given the SAFMR of $1300 and the typical reimbursement breakdown, landlords should expect to receive a total reimbursement close to the SAFMR, minus any additional costs that exceed the utility allowance. If the local market rent were higher than the SAFMR, landlords would face a reimbursement gap, meaning they would have to subsidize the difference between the market rate and the voucher reimbursement. Conversely, if the market rent is lower than the SAFMR, landlords could benefit from a surplus, where the voucher covers more than the market rate.
Since the local market rent data for ZIP 38183 is currently unavailable, it's important for landlords to research and compare the SAFMR with the prevailing market rents in their area to determine whether there will be a reimbursement gap or surplus. In ZIP 38183, the SAFMR of $1300 provides a benchmark for landlords to assess the financial viability of accepting Section 8 vouchers for their two-bedroom units.
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.