Location: Benton County, TN | Metro: Benton County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
In ZIP code 38333, there are several potential risks for landlords considering participation in the Section 8 program. Firstly, tenant turnover could be an issue due to the disparity between market rents and the Fair Market Rent (FMR) of $960 set for fiscal year 2026. This discrepancy might make it challenging to attract tenants who can afford market rates, leading to higher turnover among those seeking subsidized housing.
Vacancy exposure is another concern. With no data available on the average days on market (DOM), it's difficult to predict how long properties might remain vacant. High vacancy rates can significantly impact cash flow and profitability, especially when market conditions favor renters over landlords.
The deferred-maintenance exposure is also noteworthy. Given the typical home value of $175,289 and a median income of $40,417, landlords must be prepared for the possibility that tenants may not have the financial capacity to cover maintenance costs beyond their rental contribution. This could result in additional expenses for the landlord, particularly if the property requires significant upkeep.
However, these risks are balanced by a high renter share of 13.9%. High renter density often correlates with increased demand for housing vouchers, which can provide a steady stream of tenants willing to pay the government-subsidized rate. This demand stability can mitigate some of the risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP code 38333.
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.