Location: Wayne 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 | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $177,817 | 0.57% | F |
| 3BR | $1,210 | $267,094 | 0.45% | F |
| 4BR | $1,350 | $319,960 | 0.42% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 38464 (Lawrenceburg, TN) might question whether the Fair Market Rent (FMR) of $950 will sufficiently cover the mortgage on a $241,126 home. Using a mortgage calculator, we can determine that a 30-year fixed-rate mortgage at an interest rate of 4.5% would result in monthly payments of approximately $1,170, assuming a 20% down payment. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $220 per month. However, it's important to note that this calculation assumes the lowest possible down payment and a standard interest rate. A higher down payment or a lower interest rate could reduce the monthly mortgage payment.
The investor may also be concerned about the level of renter demand in ZIP 38464, given that only 28.9% of the housing units are rented. This figure suggests that there is a significant portion of owner-occupied homes, which could indicate a preference for homeownership over renting. However, it's worth noting that the rental market still exists and there are listings available on platforms such as Coldwell Banker Southern Realty. While the percentage of renters is relatively low, it does not necessarily mean that finding tenants will be difficult. The rental market can be influenced by various factors, including job availability and population growth, which would require further investigation.
A final objection could be whether the Housing Choice Voucher program will keep pace with the market rents of $758. According to the data, there is no direct information on the voucher amounts for ZIP 38464. However, the voucher program is designed to help low-income families afford decent housing, and the amount of assistance provided is typically based on the local fair market rent. If the voucher amounts are close to or above the $758 market rent, they should adequately cover the cost of renting a modest home. It's important to monitor local trends and policy changes that could affect voucher amounts.
In conclusion, while the FMR of $950 does not fully cover the mortgage payment on a $241,126 home, adjustments in down payment and interest rates could make it more feasible. The rental demand at 28.9% indicates a smaller but still present market. Lastly, the adequacy of vouchers in covering market rents remains uncertain without specific data on voucher amounts in ZIP 38464. Further research into local economic conditions and policy updates would provide a clearer picture.
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.