Location: Overton County, TN | Metro: Clay County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38541 within the Overton County, TN metro reveals several key points that can help landlords and small-portfolio investors make informed decisions. The Fair Market Rent (FMR) for 38541 is set at $1,220 for fiscal year 2026, which is higher than the market rent figure of $1,033. This suggests that the government's estimate for rental affordability exceeds what the market currently supports, potentially indicating an opportunity for price adjustments.
The median home value in ZIP 38541 stands at $260,611, which is a critical metric for understanding property investment potential. When compared to typical ZIP codes in Overton County, this figure may suggest that 38541 is a mid-tier neighborhood. However, the determination of whether it qualifies as a value pocket, a mid-tier neighborhood, or a premium sub-market requires a broader context of the county's average home values and rental rates.
A notable aspect of ZIP 38541 is its 18.9% renter share, which is a significant portion of the population. In areas where the renter share is high and home values are below the metro average, this often signals a sweet spot for Section 8 properties. Given the disparity between the FMR and the actual market rent, along with the substantial renter share, it's reasonable to infer that 38541 could be particularly attractive for Section 8 investments. Landlords who can leverage the higher FMR while maintaining rents closer to the $1,033 market rate might find themselves in a favorable position.
To conclude, based on the specific figures provided, ZIP 38541 appears to be a mid-tier neighborhood with potential as a value pocket for Section 8 investments due to its high renter share and lower home values compared to the suggested FMR. This makes it a strategic area for those interested in affordable housing investments within the Overton County, TN metro.
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.