Location: McNairy County, TN | Metro: McNairy 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 | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $128,482 | 0.78% | D |
| 3BR | $1,380 | $195,018 | 0.71% | D |
| 4BR | $1,440 | $277,326 | 0.52% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 38375, encompassing Selmer, TN, and the McNairy County metro area, does not align favorably. The Federal Market Rent (FMR) for the fiscal year 2026 is set at $930, whereas the actual market rent, according to Census ACS data, is only $670. This discrepancy suggests that landlords might struggle to cover costs and generate profit if they rely on the current market rates.
Acquisition in this area appears affordable, with a median home value of $156,861. However, the lack of data on days on market (DOM) and the fact that 0.2% of homes have been listed with a price cut indicate a potentially sluggish market for property purchases. Landlords should proceed with caution, considering these factors before making investment decisions.
Tenant demand in ZIP 38375 is relatively low. With a total population of 8,475, only 23.4% are renters. This means there are approximately 1,986 potential tenants in the area, which could limit the pool of prospective renters and affect occupancy rates.
In conclusion, while the acquisition cost in ZIP 38375 is reasonable, the mismatch between FMR and market rent, combined with the limited tenant base, makes it a challenging investment opportunity for landlords and small-portfolio investors. The current market conditions suggest that generating a consistent profit through rental income will be difficult without increasing rents beyond the current market rate, which could further diminish tenant demand.
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.