Location: Hardeman County, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 38356 are significant and should be carefully considered. Firstly, tenant turnover is a critical issue. The market rent stands at $684, which is notably lower than the Fair Market Rent (FMR) of $860 for fiscal year 2024. This discrepancy suggests that tenants might be more inclined to leave once their voucher period ends, leading to higher turnover rates. Secondly, vacancy exposure is a concern. With no data available on days on market (DOM), it's difficult to predict how long a property might remain vacant between tenancies. Lastly, there is an increased risk of deferred maintenance. Given the typical home value of $217,846 and a median income of $60,594, homeowners may struggle to keep up with maintenance costs, potentially leading to substandard living conditions that do not meet HUD requirements.
Despite these challenges, the high renter share of 23.0% in ZIP 38356 indicates a strong demand for rental properties, which typically translates into higher voucher demand. This can be advantageous for landlords who are willing to comply with Section 8 regulations, as it ensures a steady stream of potential tenants. Additionally, the concentration of renters often correlates with a higher likelihood of finding tenants who are both qualified and eager to secure housing through the Section 8 program.
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.