Location: Henderson County, 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)
A landlord considering purchasing a property in ZIP code 38368 for Section 8 investment must evaluate several factors. The first step is to determine if the Fair Market Rent (FMR) of $910 for the fiscal year 2024 can cover the debt service on a property valued at $157,594. This involves calculating the monthly mortgage payment and comparing it to the FMR. If the FMR does not clear the debt service, the answer is a firm No.
If the FMR does cover the debt service, the next question is whether the market rent of $609 (as per the Census ACS data) is above, at, or below the FMR. If the market rent is below the FMR, the landlord will be able to receive a higher subsidy from the government, making the investment more attractive. In this case, the answer is Yes. However, if the market rent is above the FMR, the landlord might struggle to find tenants willing to pay the lower FMR rate, leading to a potential vacancy issue. Here, the answer is No.
In the scenario where the market rent is equal to the FMR, the landlord's decision hinges on the demand for rental properties. With 15.3% of the population being renters, there is a notable demand for rentals. However, the lack of data on days on market (DOM) means that the speed at which properties are rented cannot be accurately assessed. Despite this gap, the presence of a significant portion of renters suggests a steady demand. Therefore, the answer is It Depends. Landlords must consider other local factors such as employment rates, economic stability, and competition among rental properties.
To summarize:
The decision to invest in ZIP 38368 for Section 8 properties is thus contingent upon these key metrics and requires a thorough analysis of local market conditions beyond the provided data points.
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.