Location: Henderson County, TN | Metro: Decatur County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The median income in ZIP code 38374 stands at $38,389, which contrasts sharply with the market rate rent of $742 per month. This indicates that many households may struggle to meet their housing costs without financial assistance.
Comparatively, the Fair Market Rent (FMR) set by HUD for the fiscal year 2026 is $930. This figure represents the amount that Section 8 vouchers will cover, significantly exceeding the current market rate. Landlords should be aware that voucher holders can pay up to $930, which is higher than what most tenants are currently paying in the area.
With 30.0% of the population being renters and a total population of 1,815, the competition among landlords is likely to be intense. The affordability gap means that there is a significant portion of the rental market where tenants cannot afford the rent without assistance. This creates an opportunity for landlords who accept Section 8 vouchers to secure long-term, stable tenants.
The takeaway for landlords considering their strategy between accepting vouchers versus relying on cash-paying tenants is clear: given the high voucher payment standard relative to the median income and market rates, accepting Section 8 vouchers can provide a more reliable source of income. It also allows landlords to tap into a segment of the market that might otherwise be unable to afford the rent, thereby reducing vacancy rates and increasing occupancy stability.
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.