Location: Henderson County, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $910 |
| 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)
ZIP 38351, located in Henderson County, TN, can serve as an anchor for cash flow within a Section 8 portfolio strategy. With a Fair Market Rent (FMR) for FY 2024 set at $1160, the spread between the FMR and the market rent of $739 is significant. This gap allows for a higher rental income compared to the local market rates, ensuring a steady cash flow.
The median home value in ZIP 38351 is $218,676, which is relatively low, making it easier for landlords to acquire properties without a substantial upfront investment. Additionally, the low market rent suggests that maintenance and operational costs might also be lower, further enhancing the cash flow potential.
ZIP 38351 is not a strong candidate for an appreciation play. The data indicates a 0.2% price-cut share, suggesting that while there may be some fluctuation in property values, the overall growth is minimal. Furthermore, the N/A-day Days on Market (DOM) implies that properties may not sell quickly, reducing the likelihood of rapid capital gains.
However, ZIP 38351 can act as a diversifier within a portfolio due to its 32.0% renter share. This high percentage of renters ensures a consistent demand for rental properties, reducing the risk of vacancies. Moreover, the median income of $54,709 provides insight into the financial stability of potential tenants, although it should be noted that this figure alone does not guarantee tenant reliability.
In conclusion, ZIP 38351 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The significant spread between the FMR and the market rent ensures higher rental income, while the low median home value and likely lower operational costs contribute to a robust cash flow position.
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.