Location: Henderson County, TN | Metro: Hardin County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
The classification of ZIP code 38370 hinges on analyzing its yield potential and stability metrics. On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, which stands notably above the market rent of $786. This indicates that properties in ZIP 38370 can command higher rents when participating in Section 8 programs, thus offering a significant premium over the local market rate.
To quantify this premium, consider that the FMR is $144 more than the market rent, representing an increase of approximately 18%. For a landlord or investor, this means that a property could generate additional monthly income, specifically $144 more per unit if it qualifies for Section 8 tenancy versus standard market rates. This makes ZIP 38370 a high-yield opportunity, particularly for those willing to navigate the requirements of the Section 8 program.
Moving to the stability axis, ZIP 38370 has a rental market where only 16.7% of residents are renters, suggesting a relatively stable demand for rental units. However, the lack of data on days on market (DOM) introduces some uncertainty about how quickly units might turn over, which is a critical factor for cash flow management. The median household income of $66,218 provides a moderate level of financial security for tenants, assuming that this income level is representative of Section 8 participants in the area.
Combining these factors, ZIP 38370 appears to be a market that leans towards high yield but with lower stability due to the limited percentage of renters and the absence of DOM data. While the income figure suggests a reasonable tenant profile, the overall mix points more towards a flip-style market where quick turnover and maximizing rental income through Section 8 participation are key strategies. Investors should be prepared for potentially higher vacancy rates and focus on properties that can attract Section 8 tenants effectively, leveraging the $144 monthly premium over market rents.
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.