Location: Lawrence County, TN | Metro: Lawrence 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 | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $269,583 | 0.44% | F |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 38469 for Section 8 purposes must evaluate several factors to make an informed decision.
1. Does the Fair Market Rent (FMR) of $930 cover the debt service on a $238,660 property?
Yes: The FMR of $930 can indeed support the debt service on a property priced at $238,660. Assuming a standard mortgage rate and term, this FMR would be sufficient to meet monthly payments and maintain profitability.
No: If the FMR cannot cover the debt service, then purchasing a property in this ZIP code for Section 8 is not advisable. However, based on the provided data, the FMR does cover the expected debt service.
2. How does the market rent of $688 compare to the FMR?
Market Rent Below FMR: At $688, the market rent is below the FMR of $930. This indicates that Section 8 tenants can afford higher rents than what the market currently offers, potentially allowing for higher occupancy rates among Section 8 tenants.
Market Rent Above FMR: Not applicable in this case since the market rent is lower than the FMR.
Market Rent Equal to FMR: Also not applicable here, as the market rent is lower than the FMR.
3. Is there enough demand with 11.7% of residents renting and the unknown days on market (DOM)?
It Depends: With 11.7% of residents renting, the demand for rental properties is present but not overwhelming. The unknown DOM figure makes it challenging to assess how quickly properties are leased. If the DOM is low, indicating quick leasing, then the demand is likely sufficient. Conversely, if the DOM is high, suggesting slow leasing, then the demand might not be strong enough to justify investment solely based on Section 8 tenants.
To conclude, the ZIP code 38469 is viable for Section 8 investments given that the FMR clears the debt service on a property valued at $238,660 and exceeds the current market rent of $688. However, the strength of demand for rentals is contingent upon the actual DOM, which needs to be determined to finalize the investment decision.
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.