Location: Lawrence 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 | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $286,781 | 0.43% | F |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 38456, it's essential to first grasp the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2026 is $950. This figure represents the maximum amount that the Section 8 program will pay towards the rent of a unit in this area.
The SAFMR is based on the average market rent for the area, but it's important to note that the actual local market rent is currently unavailable. Therefore, we must rely on the SAFMR as our benchmark for assessing the financial viability of participating in the Section 8 program.
A Section 8 voucher is designed to cover a significant portion of the rent, but not all of it. The tenant is responsible for paying 30% of their adjusted income towards rent, and this amount is then supplemented by the voucher to reach the total rent. In ZIP 38456, if the total rent for a two-bedroom unit is $950, the tenant would pay approximately $285 (30% of $950), leaving the voucher to cover the remaining $665.
Additionally, the voucher program includes utility allowances. These allowances vary by location and unit size, but they are intended to help cover the cost of utilities such as electricity, water, and gas. For ZIP 38456, the utility allowance for a two-bedroom unit is not specified in the provided data, so landlords should refer to the local Housing Authority for exact figures.
Once the tenant portion and utility allowances are factored in, landlords can expect the voucher reimbursement to be around $665 for a two-bedroom unit at the $950 SAFMR rate. However, the actual reimbursement may be slightly higher if utility costs are substantial and the allowance adds to the overall payment.
In conclusion, for a two-bedroom rental property in ZIP 38456, the typical reimbursement gap or surplus would be the difference between the SAFMR rate ($950) and the combined tenant payment and voucher reimbursement. Given the $285 tenant contribution, the gap would be about $285 per month, meaning landlords would need to accept a lower rent than the market rate to participate in the Section 8 program.
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.