Location: Smith County, TN | Metro: Smith County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The median income in ZIP code 38552 stands at $71,250, providing a solid economic foundation for potential renters. However, the absence of specific market rate data presents a challenge in fully assessing the affordability landscape. Despite this, we can draw insights based on the Fair Market Rent (FMR) set at $910 for the fiscal year 2024.
Given the median income, a household would need to allocate a significant portion of their earnings towards housing if they were to pay the FMR. This allocation could strain budgets, especially considering other living expenses and financial obligations. The affordability gap becomes apparent when comparing the FMR to the overall income levels, suggesting that many renters might find it difficult to cover market rents without assistance.
With only 12.7% of the 472 population being renters, competition among landlords in ZIP 38552 is relatively low. This means that landlords have a smaller pool of potential tenants to attract, which can be both a challenge and an opportunity. For those who choose to accept Section 8 vouchers, the FMR of $910 offers a stable and predictable income source. However, it also means adhering to government regulations and possibly dealing with lower vacancy rates due to the limited number of voucher holders.
Landlords must weigh the benefits of accepting vouchers against the advantages of attracting cash-paying tenants. While vouchers provide guaranteed payments, cash-paying tenants may offer higher rental income and fewer administrative burdens. The decision should consider the local rental market dynamics, the availability of voucher holders, and the landlord's capacity to manage subsidized housing.
Takeaway: Landlords in ZIP 38552 have a strategic choice between accepting Section 8 vouchers for steady income or targeting cash-paying tenants for potentially higher returns. The low percentage of renters suggests that competition is less intense, allowing for tailored approaches to maximize occupancy and profitability.
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.