Location: Obion County, TN | Metro: Obion County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38260 in Obion County, Tennessee, reveals key insights for landlords and small-portfolio investors considering investment in this area.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. However, the current market rent, as reported by the Census ACS, stands at $774. This discrepancy means that landlords aiming to charge the FMR will face challenges in maintaining occupancy rates, given the lower market rent. Landlords should consider setting rents closer to the market rate to ensure full occupancy and avoid vacancies.
Moving on to the affordability of acquisition, the median home value in ZIP 38260 is $172,804. While this figure provides a baseline for property values, the lack of data on days on market (DOM) and the percentage of homes that required price cuts indicates that there is limited information available on how quickly properties sell and at what discount. Investors should be cautious and conduct further research into local real estate trends to understand the dynamics of property sales in this area.
The third question concerns tenant demand. With a population of 3,720 and a renter share of 20.4%, there is a modest but present demand for rental properties. This suggests that there is a steady pool of potential tenants, though it is important to note that the relatively low renter share might limit the number of available renters. Additionally, the small population size implies a smaller overall market for rentals, which could affect the scale of investment opportunities.
Verdict: ZIP 38260 offers a viable but modest opportunity for landlords and small-portfolio investors. The gap between the FMR and the actual market rent must be carefully managed to ensure occupancy. Acquisition costs are reasonable, but the limited data on property sales indicate a need for thorough due diligence. Tenant demand is present but constrained by the low renter share and small population. Overall, the area supports a niche investment strategy, focusing on properties priced close to the market rent of $774, and investors should proceed with caution, leveraging the median home value of $172,804 while being mindful of the local market's characteristics.
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.