Location: Overton County, TN | Metro: Clay County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 38568, located in Overton County, Tennessee, presents a unique opportunity for both landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for the Overton County metro area for fiscal year 2026 is $1,010. However, due to the lack of available market rent data for ZIP 38568, it's challenging to directly compare the HUD FMR with actual local rents. This absence of comparison data suggests that the local rental market may be less competitive, allowing Section 8 voucher tenants to potentially cashflow at the HUD FMR rate without requiring premium units.
The median home value in this ZIP code is $261,682. Using this figure, we can derive the rent-to-price ratio, which is an important metric for understanding the relative affordability of renting versus buying. Assuming a typical mortgage payment (including principal, interest, taxes, and insurance) is around 1% of the home value per month, the expected monthly mortgage cost would be approximately $2,617. With the HUD FMR at $1,010, this indicates that the rental income from a Section 8 tenant would not cover the full mortgage payment. Therefore, landlords would likely experience negative cash flow unless they have a significant down payment or equity in their properties, reducing their monthly mortgage burden.
The dynamics of the rent-versus-buy market in ZIP 38568 are further complicated by the lack of data on the median days on market (DOM) and the percentage of homes that experienced price cuts. These metrics are typically indicative of how quickly properties sell and whether there is downward pressure on home values, respectively. While these specifics are not available, the relatively stable median home value suggests a consistent housing market, which could provide a sense of security for investors looking to maintain property values over time.
The strongest angle for investors in this market is stability. Given the consistent median home value and the likelihood of steady demand for affordable housing, Section 8 properties in ZIP 38568 offer a reliable investment option with predictable returns and minimal risk of rapid depreciation.
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.