Location: Weakley County, TN | Metro: Henry County, TN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $237,117 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP code 38242, located within Weakley County, TN, presents an interesting snapshot when compared to typical ZIP codes in the same county. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960. However, the actual market rent in ZIP 38242 is lower at $782, indicating that it is slightly below the metro average in terms of rental costs.
The median home value in ZIP 38242 stands at $214,244, which is relatively low compared to the metro's FMR. This suggests that property owners in this ZIP code might find themselves with homes that are undervalued relative to the rental market potential, especially considering the FMR is higher than the current market rent.
A key factor in evaluating ZIP 38242 is its 32.9% renter share, which is notably higher than the typical share in other Weakley County ZIPs. High renter share can be indicative of areas where there is a significant presence of rental assistance programs such as Section 8. This makes ZIP 38242 potentially attractive for landlords looking to capitalize on government subsidies, as the higher renter share combined with below-metro home values could signal a sweet spot for Section 8 properties.
To summarize, ZIP 38242 appears to be a value pocket within the Weakley County, TN metro. It offers lower market rents than the metro average, a median home value that is also below the metro average, and a significantly higher renter share. These factors collectively suggest that it is a favorable location for landlords and small-portfolio investors interested in leveraging Section 8 programs, given the potential for subsidized rents without the need to invest in premium-priced properties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.