Section 8 Fair Market Rent (FMR) for ZIP 38237 - 2027

Location: Weakley County, TN | Metro: Obion County, TN

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$800
2 Bedrooms	$1,050
3 Bedrooms	$1,260
4 Bedrooms	$1,750
5 Bedrooms	$2,030
6 Bedrooms	$2,274
7 Bedrooms	$2,456
8 Bedrooms	$2,579

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,627

Median Household Income

$51,670

Housing Units

6,952

Renter Percentage

44.6%

Occupancy Rate

89.3%

Renter Occupied

2,768

A landlord considering investing in ZIP code 38237 for Section 8 properties should follow this decision tree:

1) Does FMR $980 (metro FY 2026) clear debt service on a $214,010 property?

If the landlord's debt service is less than $980 per month, then the answer is yes. The Fair Market Rent (FMR) of $980 is sufficient to cover the monthly mortgage payments and other expenses associated with owning a property valued at $214,010.

If the landlord's debt service exceeds $980 per month, then the answer is no. The FMR would not be adequate to clear the total monthly debt service costs, making the investment unprofitable under Section 8 guidelines.

2) Is market rent $1,004 (ZORI) above, at, or below FMR?

The Zillow Observed Rent Index (ZORI) indicates that the average market rent in ZIP 38237 is $1,004. This is higher than the FMR of $980. If the landlord can charge market rates, then the answer is yes. The difference between the market rent and FMR provides an additional buffer for profit margins.

If the landlord must rely solely on Section 8 vouchers, which cap rent at the FMR, then the answer is no. The landlord would miss out on the potential to earn more than the FMR by renting to non-Section 8 tenants.

3) Are 44.6% renters + N/A-day DOM enough demand?

The percentage of renters in ZIP 38237 is 44.6%. However, the Days on Market (DOM) figure is not available. If the landlord can assume a reasonable DOM based on similar areas, they should proceed with caution.

If the DOM is low, indicating quick turnover and high demand, then the answer is yes. There is enough rental demand to support a Section 8 property in this area.
If the DOM is high, suggesting slow turnover and low demand, then the answer is no. The landlord might struggle to find tenants willing to pay the FMR.
If the DOM is moderate, then the answer is it depends. The landlord should consider other factors such as vacancy rates, job growth, and population trends to make a final decision.

Note that without a specific DOM figure, the third question cannot be definitively answered. The landlord must evaluate local market conditions to determine if there is sufficient demand for rental properties.

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.