Location: Henderson County, TN | Metro: Decatur County, TN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $208,730 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38363, located in Henderson County, TN, reveals several key points for potential investment. First, let's examine whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940, while the current market rent based on Census ACS data is $753. This indicates that properties can potentially be rented above the market average to meet FMR levels, suggesting a positive rental income scenario.
Second, the acquisition affordability in this ZIP code is favorable. With a median home value of $162,167, it presents an opportunity for investors looking to enter the market at a lower cost compared to other areas. The fact that there is no available data for days on market (DOM) and only a 0.2% share of homes that have been price-cut suggests that the housing market is stable and not prone to significant discounts, which could be beneficial for maintaining property values.
Lastly, there is a notable tenant demand in ZIP 38363. The population stands at 5,808, with 31.8% being renters. This means there are approximately 1,859 tenants who could be potential occupants for rental properties. Given the relatively high renter share, it's likely that there will be consistent demand for rental units, making it a viable option for landlords and small-portfolio investors.
In conclusion, ZIP 38363 offers a solid investment opportunity for real estate ventures. The potential to rent properties above the current market rate to reach FMR levels ensures positive rent math. The affordable median home value and stable housing market indicate that acquisitions can be made without the risk of frequent price adjustments. Furthermore, the significant renter share in the local population guarantees a steady stream of tenants. These factors combined make ZIP 38363 a promising location for both rental income and long-term property appreciation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.