Section 8 Fair Market Rent (FMR) for ZIP 38477 - 2027

Investment Score for ZIP 38477

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor analyzing ZIP code 38477 might raise several concerns regarding the feasibility of investing in properties that cater to Section 8 tenants. Here are the most pressing objections and how the data addresses them.

• Will FMR $1,080 (metro FY 2026) cover the mortgage on a $254,395 home?: The Fair Market Rent (FMR) for ZIP 38477 is projected to be $1,080 in fiscal year 2026. This amount must be sufficient to cover the mortgage payments on a property valued at $254,395. Assuming a typical down payment of 20%, the loan amount would be around $203,516. At an average interest rate of 4%, the monthly mortgage payment would be approximately $970, which is comfortably covered by the $1,080 FMR. However, it's important to consider additional costs such as property taxes, insurance, and maintenance, which can significantly affect profitability.

• Is there enough renter demand at 12.7%?: With only 12.7% of the housing units being rented out, some might argue that the demand for rental properties in ZIP 38477 is insufficient. Despite this relatively low percentage, the actual number of renters could still support a small portfolio of Section 8 properties. It's crucial to assess the local vacancy rates and the competition from other rental properties to determine if there's enough demand. Additionally, the presence of a significant number of potential voucher holders could indicate a latent demand that isn't currently met by existing rentals.

• Will vouchers keep pace with $1,054 market rents?: The market rent in ZIP 38477 stands at $1,054. To ensure that Section 8 vouchers will keep up with these rents, we need to look at historical trends and future projections. While the data does not provide explicit figures on voucher amounts, typically they aim to cover the average rent in the area. Given that the FMR is slightly higher than the market rent, it suggests that voucher amounts are likely to be sufficient. However, it's important to monitor any changes in voucher policies and funding levels to ensure long-term viability.

The data provides a snapshot of the financial landscape in ZIP 38477 but does not offer complete assurance on all fronts. Careful consideration of additional factors, including ongoing economic conditions and policy changes, is necessary for a thorough investment analysis.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.