Location: Smith County, TN | Metro: Smith County, TN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $397,664 | 0.33% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38547, located in Smith County, Tennessee, reveals several critical points for potential real-estate investments, particularly focusing on Section 8 properties.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $860. However, the lack of specific market rent data means that direct comparison is impossible. Without precise market rent figures, it's challenging to determine if the FMR aligns with what tenants can afford, indicating a need for further investigation into local rental trends.
Moving on to the affordability of property acquisition, the median home value in ZIP 38547 stands at $341,321. This figure suggests that acquiring a property in this area is relatively expensive compared to other parts of the country. The absence of data regarding the number of days on market (DOM) and the percentage of homes that have experienced price cuts indicates a stable market, but also leaves some uncertainty about the ease of finding a good deal.
The third point of analysis concerns tenant demand. With a total population of 2,088, only 1.7% of residents are renters. This low percentage implies that there might be limited demand for rental properties, which could pose challenges for landlords and small-portfolio investors looking to secure long-term tenants.
Verdict: Investing in ZIP 38547 presents a mixed picture. While the FMR provides a clear guideline for rental income, the high median home value and low renter share suggest that finding affordable acquisitions and securing consistent tenant demand could be difficult. Landlords should proceed with caution, ensuring they have a thorough understanding of the local rental market and the potential for long-term occupancy before making any investment decisions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.