Location: Lewis County, TN | Metro: Maury County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
In ZIP 38483, the thesis for Section 8 real estate hinges on the significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR for a two-bedroom apartment in Summertown, TN is set at $1,000, while the market rent stands at $747 according to the Census ACS. This represents a gap of $253, or approximately 33.8%.
The FMR being higher than the market rent means that voucher tenants can afford to pay more than what the open market demands. Specifically, landlords accepting Section 8 tenants can expect to receive a payment that exceeds the local market rate, making it a yield play. Given that only 18.5% of residents are renters, there is a relatively smaller pool of potential tenants who might be willing to pay the higher FMR rates, which makes Section 8 vouchers particularly attractive for landlords.
With a median home value of $301,388 and a median income of $61,293, the financial situation of many residents in ZIP 38483 aligns well with the affordability offered by Section 8 vouchers. Landlords can leverage this gap to achieve higher yields compared to the broader rental market, ensuring better returns on investment.
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.