Location: Lincoln County, TN | Metro: Lincoln County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 38488, located in Lincoln County, TN metro, reveals several key points regarding rental income potential and property investment viability.
The HUD Fair Market Rent (FMR) for the metro area, effective in fiscal year 2026, is set at $1,010. In contrast, the Census American Community Survey (ACS) reports the average market rent in this ZIP code to be $690. This comparison indicates that voucher tenants can indeed provide positive cash flow at the HUD FMR rate, as the FMR exceeds the current market rent by $320 per month.
To further understand the investment landscape, consider the median home value of $314,799. The rent-to-price ratio, calculated by dividing the annual rent ($1,010 * 12 months = $12,120) by the median home value, comes out to approximately 3.85%. This suggests that rental income represents a relatively small portion of the overall property value, indicating that appreciation may be a stronger factor for long-term investment returns compared to cash flow.
While the median Days on Market (DOM) and the percentage of price cuts are not available, these metrics would typically help gauge the health of the local housing market. Given the significant difference between the HUD FMR and the actual market rent, it is likely that landlords can maintain stability while still attracting tenants through voucher programs.
The strongest investor angle in ZIP 38488 is appreciation. With a robust difference between the HUD FMR and the current market rent, combined with the potential for property values to rise over time, investors should focus on the long-term growth of their investment rather than short-term cash flow gains.
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.