Location: Wayne County, TN | Metro: Lawrence County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 38463 presents a unique opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 2,644, only 4.6% are renters, indicating that this area is primarily dominated by homeowners rather than renters. This suggests that the demand for rental properties using Section 8 vouchers will be relatively low compared to areas with higher percentages of renters.
The median household income in ZIP 38463 stands at $58,059. The market rent for the area is $672, which represents approximately 12% of the median household income. This figure is crucial because it shows that the average rent is well below the median income, making it feasible for residents to afford housing without assistance.
However, comparing the market rent to the Fair Market Rent (FMR) of $990, which is set for FY 2026 for the metropolitan area, highlights a significant discrepancy. The market rent of $672 is nearly two-thirds of the FMR, suggesting that landlords can potentially receive higher rents through Section 8 vouchers than they would in the open market.
In terms of tenant profiles, landlords in ZIP 38463 should anticipate working with tenants who have a strong need for financial assistance due to lower-than-average incomes relative to the broader metropolitan area. These tenants are likely to value stability and affordability, given the limited number of rental units available in a predominantly homeowner-dominated area. While the voucher demand is not deep, it does provide an avenue for landlords to fill vacancies with tenants who are committed to paying their portion of the rent on time and maintaining their living spaces.
To conclude, while ZIP 38463 is not heavily populated with renters, the potential for receiving FMR-based rents through Section 8 vouchers makes it a viable option for landlords looking to serve this segment of the market. The focus should be on providing quality, affordable housing options that meet the needs of financially assisted tenants.
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.