Section 8 Fair Market Rent (FMR) for ZIP 38393 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$810
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

The specific data required for ZIP code 38393, particularly regarding median home value, median income, and the percentage of renters, was not directly available from the search results. However, the analysis can still proceed based on the given Fair Market Rent (FMR) and the lack of market rent data.

The Section 8 thesis for ZIP code 38393 in Chewalla, Tennessee, is built around the Fair Market Rent (FMR) figure of $930 for the fiscal year 2026. Given that the market rent data is unavailable, we must rely on the FMR as a benchmark for assessing rental yields.

When the FMR exceeds the market rent, it signals a potential yield play for landlords and small-portfolio investors. This is because voucher tenants can cover a portion of the rent that might otherwise be unattainable by typical market-rate tenants. For instance, if the actual market rent were lower than $930, the difference would represent a subsidy from the government, effectively boosting the landlord's income.

Conversely, if the FMR is less than the market rent, which is currently unknown, it would mean that landlords accepting housing vouchers are foregoing income to provide affordable housing. The cost of housing voucher tenants below open-market rates can be significant. If the market rent were higher than $930, landlords would need to consider whether the guaranteed income from vouchers outweighs the risk of vacancies or the loss of higher-paying tenants.

Without precise figures for the percentage of renters, median home value, and median income in ZIP code 38393, it's challenging to anchor the analysis fully in the local context. However, the absence of these figures suggests that the area may not have comprehensive data available, possibly indicating a smaller or less economically diverse community. This could affect the demand for rental properties and the willingness of landlords to participate in the Section 8 program.

To conclude, the key metric is the FMR of $930. Whether this represents a yield opportunity or a cost depends entirely on the actual market rent, which remains undefined. Investors should seek additional local data to make informed decisions about participating in the Section 8 program in ZIP code 38393.

Data Sources: FMR data from HUD (2027).

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.