Location: Overton County, TN | Metro: Overton County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The ZIP code 38570, located in Overton County, TN, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area is set at $930 for fiscal year 2026, while the current market rent is significantly lower at $754. This $176 difference between FMR and market rent provides a substantial cushion for landlords, ensuring steady and reliable cash flow even when the market fluctuates.
The median home value in ZIP 38570 is $240,444, which is relatively low compared to many other regions. This makes it easier for landlords to acquire properties at reasonable prices, further enhancing the potential for positive cash flow. Additionally, the 26.5% renter share indicates a significant portion of the population relies on rental properties, making it a stable market for long-term investments.
While the median income of $41,785 suggests limited growth potential in terms of rental appreciation, the low market rent and high FMR ensure that landlords can maintain profitability without relying on increasing rents. This stability is crucial for a portfolio strategy focused on consistent cash flow rather than rapid appreciation.
ZIP 38570 does not present itself as an appreciation play due to the 0.2% price-cut share and the lack of data on days on market (DOM). These factors indicate a slow-moving market with little pressure to increase prices quickly. Instead, the focus should be on leveraging the current financial metrics to secure a solid base of cash-generating assets within the portfolio.
In conclusion, ZIP 38570 is ideal for landlords and small-portfolio investors looking to establish a cash-flow anchor. With a strong spread between FMR and market rent, combined with a manageable median home value and a significant renter population, this area offers a dependable source of income that can balance out riskier investments within a broader real estate portfolio.
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.