Section 8 Fair Market Rent (FMR) for ZIP 38313 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 38313, located in West Memphis, Arkansas, offers a unique blend of affordability and accessibility. Situated along the Mississippi River, this area is part of the larger Memphis metropolitan region, which benefits from economic ties to the bustling city across the state line. The mix of residential and commercial properties makes it a viable investment option for both landlords and small-portfolio investors.

• Fair Market Rent (FMR) for ZIP 38313 in fiscal year 2024 is set at $1070. This figure represents the maximum amount that a tenant can be expected to pay for a two-bedroom apartment under the Section 8 program, indicating the government's assessment of rental market values in the area.
• The market rent for a two-bedroom apartment in ZIP 38313 is currently $863 according to the latest Census ACS data. This suggests that there is room for growth in rental rates, as the actual market price is below the FMR, potentially offering opportunities for landlords to increase their rental income over time.
• The median home value in the ZIP code is $223,249. This relatively low median home value can be attractive for investors looking to purchase property without breaking the bank, especially considering the proximity to Memphis, which can offer additional economic benefits.
• Renters make up 14.4% of the population in ZIP 38313. While this percentage is not particularly high, it still indicates a stable demand for rental properties, especially for those who might be priced out of the local housing market but still wish to reside in the area.
• The median household income in the ZIP code is $85,625. This suggests that residents have a reasonable level of disposable income, which could support higher rents or property values if the market were to improve.
• The average days on market (DOM) for properties in ZIP 38313 is not available. However, the lack of specific data here does not necessarily indicate a problem; it could mean that sales occur quickly enough that detailed tracking isn't necessary, or that the data is too sparse to provide reliable averages.

In summary, ZIP 38313 presents a balanced investment opportunity with a Fair Market Rent above current market rates, indicating potential for growth. The median home value remains affordable, supporting acquisition strategies for small-portfolio investors. A stable renter share and median income levels suggest consistent demand and financial stability among tenants. Although the days on market for properties are not quantified, the overall economic indicators point towards a promising area for real estate investment, particularly for rental properties that can capitalize on the gap between market rent and FMR.

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.