Location: Haywood County, TN | Metro: Jackson, TN HUD Metro FMR Area
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 | $910 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,650 | $185,105 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 rental market analysis for ZIP code 38301 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, known as the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR stands at $1050, while the ZORI indicates a market rent of $1,212. This means that the FMR is $162 lower than the market rent, representing a 13.4% discount.
In this scenario, where the FMR is less than the market rent, landlords who accept housing vouchers are essentially providing a service below the open-market rate. This can be costly, as it means they are foregoing potential higher rents that could be charged to non-voucher tenants. However, there are strategic benefits to consider. The ZIP code has a robust 48.9% of its population renting, indicating a strong demand for rental properties. Additionally, the median home value in the area is $137,536, suggesting that homeownership is not out of reach but is still significantly higher than the median income of $43,227. These factors imply that many residents rely on affordable housing options, making Section 8 a viable and necessary component of the local rental market.
Despite the lower rent compared to the market, landlords benefit from the stability and reliability of Section 8 payments. Voucher holders typically have their rent subsidized up to the FMR level, which ensures consistent income and reduces the risk of vacancy. Moreover, the federal government guarantees timely payments, which can be more predictable than those from traditional tenants. Therefore, while accepting housing vouchers may mean accepting a lower rent, the overall yield and financial security can outweigh the initial cost, especially in a market where the majority of residents are already renters.
To summarize, the $162 or 13.4% difference between the FMR and market rent in ZIP 38301 presents a challenge for landlords accepting housing vouchers. However, the high percentage of renters and the gap between median income and home values support the importance of Section 8 in the local rental landscape, offering a stable and secure investment opportunity.
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.