Location: Hardeman 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $239,562 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 38340 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent based on Census ACS data. For fiscal year 2024, the FMR stands at $940, while the average market rent is recorded at $785. This represents a difference of $155, or approximately 19.5%, indicating that the FMR is higher than the market rent.
This scenario makes ZIP 38340 an attractive yield play for landlords and small-portfolio investors who can accept Section 8 housing vouchers. The higher FMR means that voucher holders can cover a rental price that exceeds the current market rate, potentially leading to better financial returns. Landlords can set their rents closer to the FMR without the risk of being too high for the local market, as voucher payments will bridge the gap.
In ZIP 38340, 25.9% of residents are renters, with a median home value of $176,168 and a median household income of $63,700. Given these conditions, the discrepancy between FMR and market rent suggests a strong demand for affordable housing options. Accepting Section 8 vouchers allows landlords to tap into this demand, ensuring a steady stream of tenants who can pay a fixed amount regardless of market fluctuations.
However, it's important to note that the benefits come with certain considerations. Voucher tenants often require additional administrative work and may have different expectations regarding property maintenance and management. Despite these factors, the financial advantage of receiving a higher rent payment through vouchers can outweigh the costs, especially when compared to the potential vacancy risks at lower market rates.
To summarize, the gap between the FMR and market rent in ZIP 38340 presents a compelling opportunity for landlords and investors to increase their yields by accepting Section 8 housing vouchers. This strategy leverages the local economic context to maximize returns while providing stable housing for low-income families.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.