Location: Carroll County, TN | Metro: Benton County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 38387 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,020. This figure represents the maximum amount that the housing authority will pay towards a tenant's rent under the Section 8 program. However, it's important to note that the local market rent data for this ZIP code is currently unavailable, which can make direct comparisons challenging.
To understand what a voucher actually pays, landlords need to consider the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If the tenant's income is low, their contribution might be minimal, but it must still be considered when calculating the total rent covered by the voucher.
Utility allowances are also factored into the equation. These allowances vary based on the number of bedrooms and the season, but they do not directly increase the SAFMR. Instead, they cover a portion of the tenant's utility expenses, reducing the out-of-pocket costs for the tenant.
The reimbursement process works as follows: the housing authority pays the difference between the tenant's contribution and the SAFMR, up to the limit of $1,020 for a two-bedroom unit. For example, if a tenant's portion is $300, the housing authority would pay the remaining $720. This ensures that the total rent does not exceed the SAFMR.
Given the SAFMR of $1,020, landlords should expect a reimbursement gap or surplus depending on the actual market conditions and the rent they charge. Since the local market rent data is not available, landlords must assess whether the SAFMR is sufficient to cover their costs and provide a reasonable profit margin. If the market rent is higher than $1,020, there will be a gap that the landlord must absorb. Conversely, if the market rent is lower, the landlord will receive a surplus above the typical market rates.
In summary, landlords in ZIP 38387 should be aware that the SAFMR for a two-bedroom apartment is $1,020, and this will be the maximum reimbursement from the housing authority. To determine the actual financial impact, they must know the tenant's portion and their own costs. Without specific local market rent data, it's impossible to state definitively whether this will result in a surplus or a gap, but the SAFMR provides a clear benchmark for economic planning.
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.