Location: McNairy County, TN | Metro: Jackson, TN HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The rental market in ZIP code 38332 presents a unique challenge for both renters and landlords alike. The market rate for rent stands at $641 according to recent Census ACS data. However, the median income figure is not available, which makes it difficult to accurately assess whether the average household can comfortably afford this rate. Despite this lack of income data, it is evident that the market rate is significantly lower than the Fair Market Rent (FMR) standard set for voucher payments, which is $860 for the fiscal year 2024.
This disparity between the market rate and the voucher payment standard highlights an important opportunity for landlords. With only 16.5% of the 1,188 residents being renters, the competition among landlords is relatively low. This means that properties in ZIP 38332 that accept Section 8 vouchers could potentially attract tenants who might otherwise be priced out of the area due to the higher FMR standard.
The affordability gap, represented by the difference between the $641 market rate and the $860 voucher payment, suggests that there are many units that could be rented at the higher voucher rate without pricing out the majority of potential tenants. This gap could be particularly advantageous for landlords willing to participate in the voucher program, as it provides a buffer against the lower market rate while ensuring steady and government-backed income.
For landlords considering their strategy, the key takeaway is that accepting Section 8 vouchers can be a viable option in ZIP 38332. It offers a guaranteed income stream that exceeds the current market rate, making it a safer bet in terms of financial stability. Additionally, given the low competition and the fact that the voucher payment is above the local market rate, landlords who accept vouchers are likely to have a steady occupancy rate, reducing the risk of vacancy and associated losses.
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.