Location: McNairy County, TN | Metro: Hardin County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 38376, located in McNairy County, TN, presents an opportunity for investors seeking stable cash flow. The HUD Fair Market Rent (FMR) for the area, set at $1,060 for the fiscal year 2026, serves as a benchmark for rental rates. However, the absence of current market rent data makes it challenging to provide a direct comparison. Assuming the HUD FMR accurately reflects market conditions, voucher tenants would cashflow at this rate, meaning they can afford the rent without additional financial strain.
To derive the rent-to-price ratio, we use the median home value of $158,407. This ratio indicates how much of the property's value is recovered through monthly rents. With an FMR of $1,060, the annual rent is approximately $12,720, leading to a rent-to-price ratio of about 8%. This suggests that the rental income covers a significant portion of the property's value, making it attractive for buy-and-hold investors looking for steady cash flow.
The lack of specific data on the median days on market (DOM) and the percentage of homes that experience price cuts further complicates a detailed analysis of the rent-versus-buy dynamics. However, given the stable nature of the housing market in rural areas like McNairy County, it is reasonable to assume that the market is relatively stable, with little fluctuation in home values and rental rates.
The strongest investor angle in ZIP 38376 is likely stability. With a reliable rent-to-price ratio and the assumption of stable market conditions, investors can expect consistent returns on their investment without the volatility often seen in larger metropolitan areas.
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.