Location: Lawrence County, TN | Metro: Lawrence County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 38457 reveals several potential challenges that a landlord or small-portfolio investor should be aware of when considering Section 8 properties. Tenant turnover is a significant concern, as the Fair Market Rent (FMR) for the area stands at $1,090 for fiscal year 2026, which is likely below the market rent. This disparity can lead to higher turnover rates as tenants seek better rental options.
Vacancy exposure is another issue to consider. The Days on Market (DOM) for the area is not available, but a lack of timely data can indicate difficulty in accurately predicting how long a property might remain vacant. High vacancy periods can strain cash flow and reduce profitability.
Deferred maintenance is also a risk factor. With a typical home value of $230,764 and a median income of $53,333, residents may struggle to afford necessary repairs and maintenance, leading to potential deterioration of the property over time. Landlords must be prepared to manage these issues proactively to maintain property standards.
Despite these risks, there are factors that mitigate them. The renter share in ZIP 38457 is 31.5%, indicating a high concentration of renters. This high density typically correlates with increased demand for housing vouchers, such as Section 8, which can provide a steady stream of qualified tenants. While the exact number of voucher holders is not specified, the high renter population suggests a robust market for subsidized rentals.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP 38457 are moderate. The combination of potential tenant turnover, vacancy exposure, and deferred maintenance must be balanced against the high renter density and likely strong demand for subsidized housing.
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.