Section 8 Fair Market Rent (FMR) for ZIP 38240 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$890
2 Bedrooms	$1,170
3 Bedrooms	$1,480
4 Bedrooms	$1,540
5 Bedrooms	$1,786
6 Bedrooms	$2,000
7 Bedrooms	$2,160
8 Bedrooms	$2,268

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,620

Median Household Income

$53,095

Housing Units

883

Renter Percentage

30.9%

Occupancy Rate

86.7%

Renter Occupied

237

ZIP code 38240, located in the heart of West Tennessee, offers a stable and modest real estate market that aligns well with federal housing guidelines. The area is characterized by a mix of residential properties, suitable for both homeowners and renters.

The Fair Market Rent (FMR) for ZIP 38240 is set at $1,120 for the fiscal year 2026, indicating the maximum amount that can be charged for a two-bedroom apartment under the Section 8 program.
The average market rent for the area, according to Census ACS data, is $968, which is below the FMR and suggests potential for rental income growth without exceeding tenant affordability.
The median home value in ZIP 38240 stands at $155,655, reflecting a relatively affordable housing market compared to many urban areas.
Renters make up 30.9% of the population, pointing to a significant demand for rental properties and opportunities for landlords to serve this segment.
The median household income in the area is $53,095, providing insight into the economic conditions and the ability of residents to pay rent or mortgage payments.

Investors in ZIP 38240 can leverage the current market conditions to offer competitive rental rates while staying within the bounds of Section 8 guidelines. With a median home value that is lower than the national average and a substantial portion of the population renting, there is a clear opportunity for landlords to provide affordable housing solutions. Additionally, the gap between the market rent and the FMR presents a chance to adjust rental prices slightly upward to meet market demands without compromising affordability. This area's economic profile supports a steady stream of tenants who can afford the rents, making it a reliable investment for those interested in long-term stability and moderate returns.

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.