Location: Giles 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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $227,513 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP code 38460, located within the Giles County, TN metro area, exhibits several distinct characteristics when compared to typical ZIP codes in Giles County. The Fair Market Rent (FMR) for ZIP 38460 is set at $930 for fiscal year 2026, which is notably higher than the market rent of $744. This suggests that the area is slightly overpriced relative to what tenants might be willing to pay, but it aligns with the federal guidelines for rental assistance.
The median home value in ZIP 38460 stands at $228,618, which is a critical figure for landlords and small-portfolio investors. This value indicates that the housing stock in this ZIP is relatively affordable compared to other areas within the Giles County metro. However, it's important to note that the home value can vary significantly based on the condition and location of individual properties.
The renter share in ZIP 38460 is 13.6%, which is a moderate percentage. A higher renter share often correlates with a greater reliance on rental assistance programs such as Section 8. In ZIP 38460, the gap between the FMR and the market rent could signal an opportunity for landlords who participate in Section 8, as they would receive a subsidy closer to the $930 mark, which is above the average market rate.
To determine if ZIP 38460 is a value pocket, a mid-tier neighborhood, or a premium sub-market, we must consider the interplay between its FMR, market rent, and renter share. Given that the FMR exceeds the market rent, and the renter share is moderate, ZIP 38460 appears to be a mid-tier neighborhood within its metro. It offers a balance between affordability and the potential for rental assistance income.
A key observation is the disparity between the FMR and the market rent. While the FMR is $930, the market rent is $744, indicating that landlords participating in Section 8 could see a significant increase in their rental income compared to the local market. This makes ZIP 38460 particularly attractive for those looking to enter the Section 8 market, as it provides a margin above the typical rent levels.
In summary, ZIP 38460 is a mid-tier neighborhood within the Giles County, TN metro, characterized by a reasonable home value and a moderate renter share. Its alignment with higher FMR subsidies makes it an advantageous area for landlords interested in Section 8, offering a clear path to better rental yields than the local market average.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.