Location: Wayne County, TN | Metro: Hickman County, TN HUD Metro FMR Area
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 | $830 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $193,847 | 0.56% | F |
| 3BR | $1,500 | $277,855 | 0.54% | F |
| 4BR | $1,810 | $345,025 | 0.52% | F |
U.S. Census Bureau data (2024)
The market in ZIP 38462, centered around Hohenwald, TN, reflects a dynamic equilibrium between supply and demand, though recent data points towards a slight lean towards demand outpacing supply. The Fair Market Rent (FMR) set at $970 for the metro area in fiscal year 2026, alongside the current market rent of $678 based on Census ACS data, suggests a steady upward trend in rental values, indicative of tenant interest.
A price-cut share of only 0.3% indicates that landlords are largely able to maintain their asking rents without significant concessions, which is a positive sign for those looking to invest in rental properties. This low rate of price cuts also implies that there is not an overwhelming surplus of units available, as would typically be seen if supply far exceeded demand.
The median home value of $245,569 provides a benchmark for property investment, reflecting the overall stability and value of the housing stock in the area. While the lack of specific days on market (DOM) data makes it challenging to assess the speed of transactions, the other indicators suggest a healthy pace of sales and rentals.
The 17.4% renter share of the population is noteworthy. This figure, while not exceptionally high, still points to a segment of the population that is likely to remain renters due to financial constraints or lifestyle choices. A higher proportion of renters can create sustained long-term housing pressure, as these individuals will continue to seek rental accommodation even as the broader economy fluctuates. For landlords and small-portfolio investors, this means a relatively stable demand for rental properties, reducing the risk of vacancies and ensuring a consistent income stream.
In summary, ZIP 38462 presents a market where demand is robust enough to support rental prices and limit the need for price reductions, yet the presence of a significant but not overwhelming renter share suggests a balanced environment. Investors should consider these factors when evaluating the potential returns and risks associated with rental investments in this area.
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.