Location: Henry County, TN | Metro: Henry County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
37.9% of residents in ZIP code 38236 are renters, indicating a significant demand for rental properties. The $990 Fair Market Rent (FMR) for the metro area in fiscal year 2026 suggests that landlords can charge close to this amount for Section 8 eligible units. However, the actual market rent, as reported by the Census ACS, stands at $526, which is notably lower than the FMR. This discrepancy highlights potential challenges in attracting tenants willing to pay the higher FMR rate.
The median home value in the area is $253,565, providing a solid foundation for property investment. With a median income of $63,598, there is a substantial population that could qualify for housing assistance programs, such as Section 8. Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the lower market rent compared to the FMR indicates that landlords might face competition from non-assisted rental properties offering more affordable rates.
Investors should consider the dynamics between the FMR and market rent when setting their expectations for rental income. While the $990 FMR provides a benchmark for what the government will subsidize, the prevailing market conditions suggest that landlords must be prepared to compete with lower-priced options. The high renter share also points to a robust tenant pool, but it does not guarantee that all tenants will be able to afford the higher FMR rates without significant financial assistance.
A final consideration is the overall economic landscape of the area. The median income figure of $63,598 implies that many households may require some form of subsidy to afford housing. Therefore, the availability of Section 8 vouchers and the willingness of tenants to use them are critical factors for landlords looking to maximize their rental income.
Verdict: Section 8 remains a viable option in ZIP 38236, given the high renter share and median income levels, but landlords must be aware of the gap between FMR and market rents.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.