Location: Jackson County, TN | Metro: Clay County, TN
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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $246,890 | 0.55% | F |
U.S. Census Bureau data (2024)
A household in ZIP code 38562, with a median income of $39,398, faces significant challenges in affording the market rate rent of $689. This discrepancy highlights an affordability gap that impacts both renters and landlords alike.
To put this into perspective, the Fair Market Rent (FMR) for the area, set at $930 for fiscal year 2026, far exceeds the average renter's capacity to pay. The median income suggests that a typical household might struggle to meet even the market rate rent, let alone the higher FMR benchmark.
In ZIP 38562, where the population stands at 6,493 and 22.7% are renters, the competition among landlords is likely to be intense. Landlords who accept Section 8 vouchers must balance between the stability and security these vouchers provide and the potential for receiving higher rents from cash-paying tenants who can afford the FMR rates.
The affordability gap means that landlords will have to carefully consider their tenant mix. Accepting voucher holders ensures a steady stream of rental income but caps the amount landlords can charge at the FMR level. On the other hand, focusing on cash-paying tenants could lead to higher individual rents, but it also risks leaving units vacant if the demand for higher-priced rentals is low.
The takeaway for landlords is clear: understanding the local economic landscape is crucial. In ZIP 38562, where median incomes are relatively low, diversifying your tenant base to include both voucher holders and cash-paying tenants may be the most effective strategy. This approach allows landlords to mitigate risk while maximizing occupancy and income potential.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.