Location: Jackson, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
The potential risks for investing in Section 8 housing in ZIP code 38303, located in Unknown, TN, are significant and should be carefully considered before making any decisions. Tenant turnover can be a critical issue, especially when comparing the market rent to the Fair Market Rent (FMR) of $1160 set for FY 2024. The absence of specific data on market rent suggests that there may be discrepancies between what landlords can charge and what the government deems fair, leading to higher turnover rates.
Vacancy exposure is another concern due to the lack of information regarding the Days on Market (DOM) for rental properties in this area. A higher DOM indicates a longer period of time a property remains vacant, which directly impacts cash flow and profitability. Without this data, it's difficult to gauge how quickly a property might fill, particularly if it relies solely on Section 8 vouchers.
Deferred maintenance exposure is also notable. The absence of data on typical home values and median incomes makes it challenging to assess the financial health of the tenants and their ability to maintain the property. This uncertainty can lead to increased costs for repairs and upkeep, which must be factored into the overall investment strategy.
However, these risks are somewhat mitigated by the high concentration of renters in the area, indicated by the N/A% renter share. High renter density typically translates into a greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants who qualify for assistance. Despite the lack of specific figures, the presence of a substantial number of renters suggests that there will likely be a pool of qualified applicants for Section 8 units.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 38303.
Data Sources: FMR data from HUD (2027).
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.