Location: Putnam County, TN | Metro: Jackson County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 housing situation in ZIP 38564 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $930 per month for fiscal year 2026, while the average market rent is $837. This means the FMR is $93 higher than the market rent, representing a 11.1% increase.
In this context, where the FMR exceeds the market rent, accepting Section 8 tenants can be seen as a yield play for landlords. Despite the slightly higher rent, the overall financial situation in ZIP 38564 suggests that the median home value is around $241,163, with a median income of $37,326. These figures indicate that the local economy is relatively weak, with a high vacancy rate of 36.3% and a higher-than-average unemployment rate of 8.6%.
The FMR provides a guaranteed income floor for landlords, ensuring that they receive a higher rent than the current market average. This can be particularly beneficial given the low cashflow ROI and the fact that the market rent does not meet the 1% rule. The 1% rule states that the monthly rent should be at least 1% of the property's value; at $837, this falls short of the 1% threshold for a $241,163 home value.
Moreover, the market in ZIP 38564 is currently classified as "cool," with declining home values over the past year. Accepting Section 8 tenants could help stabilize occupancy rates and provide a steady income stream, even if it means renting below open-market rates. However, landlords must be aware of the risks associated with the local economic conditions and the need for active management to ensure tenant stability.
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.