Section 8 Fair Market Rent (FMR) for ZIP 38238 - 2027

FY 2027 Fair Market Rent Rates

To profile ZIP code 38238 as a Section 8 tenant pool, it's essential to understand the dynamics of the rental market and the availability of housing vouchers. Unfortunately, the specific population and percentage of renters in ZIP 38238 are not available, which makes it challenging to determine whether it is a renter-heavy area or dominated by homeowners.

The median household income for this ZIP code is also unspecified, making it difficult to provide a precise analysis of how much of the local income is consumed by typical market rents. However, we can still make some general observations based on the Fair Market Rent (FMR) figures.

The FMR for the metro area including ZIP 38238 is set at $930 for fiscal year 2026. This figure represents the maximum amount that HUD will pay for a voucher in this area, assuming that the voucher holder pays 30% of their adjusted income towards rent.

Given the lack of specific data on market rents in ZIP 38238, landlords should prepare for a tenant pool that is likely to be heavily reliant on housing vouchers due to the low FMR. The scarcity of income data suggests that the area might have a significant portion of lower-income households, who would benefit most from Section 8 vouchers.

A landlord in this ZIP code should expect tenants who are part of the federal housing assistance program. These tenants will typically have a steady source of income to cover their rent through the voucher system, but the overall income level of these tenants is expected to be modest, aligning with the FMR of $930. This implies that the majority of tenants' incomes will be below the threshold required to afford market rents without assistance, highlighting the importance of the Section 8 program in this area.

In summary, ZIP 38238 appears to be an area with a strong dependency on housing vouchers, given the low FMR and the likely presence of many lower-income households. Landlords should anticipate working with tenants who are part of the Section 8 program, ensuring they meet all requirements and manage their properties to attract and retain such tenants effectively.

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.