Location: Lincoln County, TN | Metro: Giles County, TN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $267,315 | 0.59% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 38449 for a Section 8 investment must follow a structured decision-making process. Begin with the first critical question:
1) Does the Fair Market Rent (FMR) of $1,230 cover the debt service on a property valued at $266,334?
If the answer is yes, proceed to the next question. To determine this, calculate the monthly mortgage payment based on the property value and prevailing interest rates. Assuming a typical interest rate and loan terms, the monthly mortgage payment would need to be less than or equal to $1,230 to be covered by the FMR.
2) Is the market rent of $891 above, at, or below the FMR?
If the market rent is below the FMR, then the Section 8 program can potentially provide a higher rental income. This makes the investment more attractive if the FMR sufficiently covers the debt service. If the market rent is at or above the FMR, the property's rental income might already meet or exceed what a Section 8 tenant would pay, which could make the decision depend on other factors such as the availability of Section 8 vouchers.
3) Are 21.6% renters combined with the unknown days on market (DOM) indicative of sufficient demand?
The 21.6% of renters suggests that there is some demand for rental properties in the area. However, the lack of data on days on market (DOM) means we cannot fully assess how quickly properties are being rented out. This uncertainty introduces a variable into the decision-making process.
Yes: If the FMR covers the debt service and the market rent is below the FMR, and assuming the DOM indicates quick turnover, then buying in ZIP 38449 for Section 8 is advisable.
No: If the FMR does not cover the debt service, or if the market rent is at or above the FMR, and the DOM suggests slow rental turnovers, then purchasing a property for Section 8 in this ZIP code is not recommended.
It Depends: If the FMR is adequate for covering debt service but the market rent is at or above the FMR, the decision hinges on whether Section 8 vouchers are readily available and if the landlord prefers the stability of government-backed tenants over market-rate fluctuations. Additionally, if the DOM were known and indicated high demand, this would strengthen the case for investing in Section 8 properties here.
Note: The analysis assumes standard financing conditions and does not account for additional costs such as maintenance, insurance, and property taxes. These should also be considered in the final decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.