Location: Henderson County, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $920 |
| 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)
In ZIP code 38352, which is located in Shelby County, Tennessee, the Section 8 economics can be quite straightforward if you understand the components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $870. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant receiving rental assistance under the Section 8 program.
The SAFMR is a critical number because it's tailored to the local rental market conditions of ZIP 38352. Unlike broader metro or county-level FMRs, which apply uniformly across larger areas, the SAFMR reflects the unique economic situation of this particular ZIP code, ensuring that the subsidy matches the local cost of living and rental rates.
A landlord participating in the Section 8 program should know that the total rent is split between the tenant and the government. The tenant is responsible for paying 30% of their adjusted income towards rent, while the government covers the remainder up to the SAFMR limit. For example, if a tenant's adjusted income is $1,000 per month, they would pay $300 toward rent. If the total rent is $870, the government would cover the difference, which in this case is $570.
Additionally, there are utility allowances that can vary based on the type of unit and the location. In ZIP 38352, these allowances might not directly affect the rent calculation but can influence the overall financial arrangement between the landlord and the tenant. The utility allowance is meant to help cover the costs of electricity, gas, water, and other utilities. It's important to note that the total rent cannot exceed the SAFMR even when including utilities.
To illustrate the reimbursement gap or surplus, let’s consider a scenario where the market rent for a two-bedroom apartment is higher than the SAFMR. If the market rent is $1,000, and the tenant contributes $300, the government would only reimburse $570, leaving a gap of $130. Conversely, if the market rent is lower, say $700, and the tenant contributes $300, the government would still reimburse $570, leading to a surplus of $70 for the landlord.
Typically, landlords in ZIP 38352 can expect a reimbursement gap of about $130 per month for a two-bedroom apartment if they price at the market rate, assuming it aligns with the example given above. However, since the local market rent is listed as N/A, it’s crucial to research current market rates to determine the actual gap or surplus.
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.