Location: Henderson County, TN | Metro: Benton County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The potential risks for becoming a Section 8 landlord in ZIP code 38341 are significant and must be carefully considered. First, tenant turnover poses a challenge due to the disparity between the market rent of $819 and the Fair Market Rent (FMR) of $930 for the fiscal year 2026. This gap indicates that tenants might struggle to cover the additional costs required beyond the government subsidy, leading to higher turnover rates and associated costs such as legal fees, cleaning, and repairs.
Vacancy exposure is another concern. The data shows an average number of days on the market (DOM) as N/A, which suggests a lack of consistent rental activity. This uncertainty can result in periods where properties remain unoccupied, reducing cash flow and increasing the financial burden on landlords.
Deferred maintenance is also a critical issue. With a typical home value of $179,660 and a median household income of $48,944, many residents may not have the financial resources to keep their homes in optimal condition. Landlords should anticipate the need for substantial investments in property upkeep and renovations to meet the standards required by the Section 8 program.
Despite these challenges, the high renter share of 11.4% in ZIP code 38341 presents an opportunity. High renter density often translates into greater demand for rental housing, including those who rely on Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.