Location: Jackson, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38391 reveals a balance between yield and stability that leans towards providing steady cash flow rather than being a high-yield, low-stability market suitable for flipping properties. This conclusion is driven by several key figures.
Firstly, let's consider the yield. The Fair Market Rent (FMR) for ZIP 38391 is set at $1,000 for fiscal year 2024. In contrast, the market rent stands at $1,288, indicating a premium of $288 over the FMR. Given the median home value of $195,587, the rental income provides a reasonable return on investment without the volatility associated with flipping markets. A steady increase in rental income above the FMR suggests a market where landlords can expect consistent growth in their property investments.
Moving on to stability, the percentage of renters at 23.6% indicates a moderate level of tenant turnover risk. While not as stable as areas with higher percentages of renters, it is not alarmingly low either. The absence of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, but the median household income of $77,153 offers insight into the financial health of potential tenants. This income level supports the ability of residents to pay market rents, thereby contributing to the stability of rental cash flows.
To summarize, ZIP 38391 is best classified as a steady-cashflow zone. The combination of a market rent that exceeds the FMR by $288 and a median household income of $77,153 creates an environment where landlords can expect reliable returns. Although the renter population is not overwhelmingly high, the financial capacity of the residents to sustain rental payments is strong, making it a viable option for small-portfolio investors looking for stability alongside a decent yield.
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.