Location: Henry County, TN | Metro: Carroll County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
In ZIP code 38231, potential pitfalls for Section 8 landlords include significant tenant turnover due to the disparity between the market rent of $759 and the Federal Market Rent (FMR) of $960 for the fiscal year 2026. This gap can lead to dissatisfaction among tenants who might find it difficult to secure housing at the higher FMR rate, thus increasing the likelihood of frequent moves. Additionally, vacancy exposure is a concern, as the days on market (DOM) data is currently unavailable, which makes it hard to predict how long properties might remain unoccupied. The typical home value of $200,689 combined with a median income of $37,188 suggests that many homeowners might be reluctant to invest in necessary maintenance, leading to deferred-maintenance exposure. Such conditions can result in higher repair costs and lower property values over time.
Despite these challenges, there are mitigating factors that reduce the overall risk. With a 29.7% renter share, the area boasts a high concentration of renters, which typically translates into robust demand for rental housing. This high demand often includes a substantial number of voucher holders looking for affordable accommodation, making it easier for landlords to fill vacancies and maintain occupancy rates.
The combination of these factors presents a moderate risk for a first-time Section 8 landlord in ZIP 38231. While the risks are notable, the strong demand for rental properties provides a buffer against some of the potential downsides.
Data Sources: FMR data from HUD (2027). 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.