Location: Haywood County, TN | Metro: Jackson, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 38392 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1160 per month for fiscal year 2024. This SAFMR rate is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than broader county or metropolitan averages.
Section 8 vouchers operate under a shared responsibility model between the tenant and the government. Tenants are expected to contribute a portion of their income towards rent, typically 30% of their adjusted monthly income. For example, if a tenant's adjusted monthly income is $1000, they would pay $300 toward the rent. The remaining amount is subsidized by the federal government up to the SAFMR limit. In the case of a $1160 SAFMR, the government would cover the difference between the tenant’s contribution and the SAFMR rate, up to $860.
In addition to covering part of the rent, the Section 8 program also provides utility allowances. These vary based on the size of the household and the type of unit but generally range from $200 to $400 per month. For a two-bedroom apartment, the utility allowance can be around $300, depending on the household size. This allowance is separate from the rent subsidy and directly benefits the tenant, reducing their overall living expenses.
To illustrate, consider a two-bedroom apartment rented at the SAFMR rate of $1160. If the tenant pays $300 (30% of their income), the government would reimburse the landlord $860. With an additional utility allowance of approximately $300, the total reimbursement to the landlord could reach $1160. However, the exact reimbursement depends on the tenant's income and the specific utility allowance granted.
The typical reimbursement gap or surplus occurs when comparing the SAFMR rate to the actual market rent. Since the local market rent data for ZIP 38392 is currently unavailable, it is important to note that if the market rent exceeds the SAFMR, landlords may face a reimbursement gap. Conversely, if the market rent is below the SAFMR, landlords might receive a surplus. Given the SAFMR rate of $1160, landlords should monitor local rental trends to determine whether they will be compensated adequately or if there will be a shortfall or surplus.
Landlords in ZIP 38392 can expect consistent payments from the Section 8 program, provided the rent does not exceed the SAFMR. This predictability can be advantageous in managing cash flow and budgeting. However, the economic viability of renting to Section 8 tenants ultimately hinges on the local rental market dynamics relative to the SAFMR.
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.