Location: Lawrence County, TN | Metro: Lawrence County, TN
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 38481 is a small neighborhood with a total population of 890 residents. Only 15.7% of these residents are renters, indicating a primarily owner-occupied area. The median household income in this region stands at $49,567, which is relatively modest. The median home value in ZIP 38481 is $168,172, suggesting that it is an affordable residential area.
From an investment perspective, the rental economics in 38481 are noteworthy. According to the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for fiscal year 2026, the metro FMR is $930. In contrast, the actual market rent as reported by the Census Bureau's American Community Survey (ACS) is $628. This significant gap between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR rates through Section 8 vouchers.
The question then arises whether this area is suitable for a hands-off voucher operator or requires a hands-on approach for a value-add buyer. Given the low percentage of renters and the modest median income, a hands-off strategy might be challenging. Landlords would need to ensure that their properties meet the necessary standards to qualify for Section 8 vouchers. On the other hand, a value-add buyer could potentially improve the quality of the rental stock, making it more attractive to tenants and possibly commanding rents closer to the FMR. However, this would require a significant investment and active management to achieve.
In summary, ZIP 38481 offers a niche opportunity for investors interested in the Section 8 program. The disparity between FMR and market rent suggests potential profitability, but it will likely require a hands-on approach to maximize returns and ensure compliance with voucher requirements.
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.