Location: McNairy 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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $199,830 | 0.76% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 38315 presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $151,386, which is a foundational metric for understanding the local market's valuation. However, the absence of data on the percentage of listings that have been reduced and the median days on market (DOM) indicates a stable market with little fluctuation in recent times.
This stability suggests that pricing power will remain relatively unchanged over the next 12-24 months. Landlords and investors can expect to maintain current rental rates without significant adjustments due to property values or market conditions. The Federal Market Rent (FMR) for ZIP 38315 is set at $860 for fiscal year 2024, compared to the current market rate of $729 based on Census ACS data. This disparity signals an opportunity for landlords to gradually increase rents towards the FMR level, aligning with federal guidelines while ensuring affordability for tenants.
For long-term hold investors, the appreciation thesis is less robust. The lack of specific data on listing reductions and DOM points to a market that is neither overheating nor cooling rapidly. While there is potential for modest appreciation, driven by factors such as economic growth and demographic shifts, it is unlikely to be substantial enough to significantly impact overall portfolio value in the short term. Investors should focus on steady cash flows and strategic improvements to properties to enhance their value over time.
The setup implied by the available data suggests a balanced approach for landlords and small-portfolio investors. They should aim to stabilize their income through consistent rental pricing, keeping an eye on the FMR as a benchmark for future increases. Additionally, long-term investors must be prepared for a slower pace of capital appreciation, emphasizing the importance of property management and tenant relations in maintaining a successful investment strategy.
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.