Location: Henderson County, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $1,030 |
| 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 Section 8 thesis for ZIP code 38345 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $870, while the Census ACS reports a market rent of $900. This creates a $30 gap, representing a 3.45% difference between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of accepting housing voucher tenants who pay below the open-market rate. The FMR acts as a benchmark for the maximum rental amount that can be charged to voucher recipients, ensuring affordability but potentially reducing the landlord's revenue. In ZIP 38345, where 32.6% of residents are renters and the median income stands at $48,333, the lower FMR may reflect the economic realities faced by many households.
However, accepting Section 8 tenants can still be a viable strategy for achieving a stable yield. The median home value in the area is $229,179, indicating a mix of property types and values. Landlords who accept voucher tenants can benefit from guaranteed rent payments and a stable occupancy rate, which can offset the slightly reduced rental income compared to the market rate. Additionally, the federal government covers the difference between the tenant’s contribution and the FMR, providing a reliable source of income.
To summarize, while there is a $30 gap between the FMR and the market rent in ZIP 38345, representing a 3.45% difference, landlords should consider the broader context of the local rental market. With a significant portion of the population renting and median incomes reflecting affordability concerns, the stability offered by Section 8 vouchers can be an attractive option for maintaining consistent cash flow and property occupancy.
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.