Location: Jackson, 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 ZIP code 38347, located in Jackson, TN, presents a unique opportunity for inclusion in a Section 8 portfolio strategy, particularly as a cash-flow anchor. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market conditions observed in the area.
In fiscal year 2024, the HUD-set FMR for ZIP 38347 is $900. However, the lack of specific market rent data for comparison underscores the potential stability and predictability of cash flow that Section 8 properties can provide. Given the median home value in the area stands at $152,087, it suggests that rental properties could be acquired at relatively lower costs, enhancing the attractiveness of the FMR subsidy.
The median income of $58,189 in ZIP 38347 indicates a moderate economic environment where the demand for affordable housing is likely strong. With a 13.8% renter share, there is a notable segment of the population relying on rentals, which supports the idea that Section 8 tenants would be a reliable source of consistent income. The absence of data on price-cut share and days on market (DOM) further emphasizes the need to rely on the steady income provided by Section 8 contracts, especially in an area where market dynamics are less clear.
While ZIP 38347 might not offer immediate opportunities for appreciation or rapid diversification due to limited market data, its suitability as a cash-flow anchor is undeniable. Landlords and small-portfolio investors can leverage the guaranteed rental income from Section 8 to stabilize their financial performance and reduce the risk associated with fluctuating market rents. This makes ZIP 38347 an ideal choice for those looking to secure a predictable revenue stream, backed by the federal government's commitment to support affordable housing initiatives.
To summarize, ZIP 38347 should be considered as a cash-flow anchor within a Section 8 portfolio strategy. Its HUD-set FMR of $900 provides a clear benchmark for rental income, and the median home value of $152,087 suggests a reasonable acquisition cost for rental properties. The moderate median income and significant renter share further bolster the case for stable occupancy rates and predictable returns.
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.