Location: Gibson County, TN | Metro: Gibson County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 38316, located in the HUD Metro FMR Area of Gibson County, TN, reveals a competitive but manageable landscape. The HUD Fair Market Rent (FMR) for this area is set at $860 for the fiscal year 2024. In comparison, the market rent based on Census ACS data is slightly higher at $880. This indicates that voucher tenants will generally cashflow at the FMR, though with a marginal buffer given the slight difference between the FMR and market rent.
To further understand the investment potential, consider the median home value in ZIP 38316, which stands at $169,555. Using this figure, we can calculate the rent-to-price ratio, an important metric for evaluating the relative cost of renting versus buying. A quick calculation shows that the annual rent of $10,560 (based on the FMR) represents approximately 6.2% of the median home value. This suggests a relatively low rent-to-price ratio, indicating that the rental market is less expensive compared to the housing market, which could be a positive factor for investors looking to maximize their returns through rental income.
Regarding the days on market (DOM) and the percentage of homes that have experienced price cuts, these figures are currently not available (N/A). However, these metrics would be crucial in understanding the rent-versus-buy dynamics. If the DOM is high and a significant percentage of homes are experiencing price cuts, it might indicate a buyer's market where the rental option could be more attractive to tenants, thus stabilizing the rental demand.
The strongest angle for investors in this market is likely to be stability. With the HUD FMR closely aligning with market rents, there is a reduced risk of significant rent fluctuations. Additionally, the low rent-to-price ratio suggests that the rental market remains affordable relative to homeownership, which can help maintain a steady stream of tenants and reduce vacancy rates. Stability is key for landlords and small-portfolio investors, ensuring consistent cash flow and predictable long-term returns.
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.