Location: Henry County, TN | Metro: Henry County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 38251 include significant tenant turnover due to the disparity between the market rent of $679 and the Federal Market Rent (FMR) of $930 for fiscal year 2026. This gap suggests that tenants might be attracted by the higher subsidy rates but could also move frequently if they find better opportunities, leading to increased administrative costs and vacancies.
Vacancy exposure is another concern, especially since the days on market (DOM) data is not available. In markets with high vacancy rates, landlords can face prolonged periods without rental income, which can strain cash flows and reduce profitability.
Deferred maintenance poses a risk as well, particularly when considering the typical home value of $214,702 and the median income of $54,449. Lower incomes may limit residents' ability to contribute to necessary repairs and upgrades, placing the burden on landlords to maintain property standards while receiving limited funds from tenants.
However, these risks are offset by the high renter share of 12.1%, indicating a dense population of renters who are likely to have a higher demand for housing vouchers. This scenario typically translates into a stable tenant pool, as voucher holders often prioritize long-term residency over frequent moves.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 38251 is moderate.
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.