Location: Putnam County, TN | Metro: Jackson County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38545 in Putnam County, TN, reveals key insights for landlords and small-portfolio investors.
The rent math does not favor landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930, whereas the current market rent based on Census ACS data is only $855. This discrepancy means that landlords may struggle to charge rents high enough to cover costs and maintain profitability.
Acquisition appears relatively affordable in this area. With a median home value of $253,511, potential investors can purchase properties at a reasonable price point. However, the lack of data regarding the number of days on the market (DOM) and the percentage of homes that have been discounted indicates uncertainty about the current market conditions and negotiation leverage.
Tenant demand is moderate. The ZIP code has a total population of 1,575, with 27.5% of residents being renters. While this suggests a steady stream of potential tenants, the limited size of the population could pose challenges in finding and retaining a consistent pool of renters.
Verdict: Investing in ZIP 38545 presents mixed opportunities. Although property acquisition is affordable, the lower-than-FMR market rent and modest tenant demand suggest that landlords should approach this market with caution. Profit margins may be thin, and competition for tenants could be intense, especially given the relatively small pool of potential renters. To succeed, landlords must manage costs effectively and be prepared for possibly slower turnover rates.
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.