Location: Clay County, TN | Metro: Clay County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The ZIP code 38575 is situated in a rural neighborhood characterized by a small population of 865 residents, where only 2.9% of the households rent their homes. This indicates a predominantly owner-occupied area, suggesting a tight-knit community with a strong sense of ownership and stability. The median household income stands at $39,323, which is modest compared to urban areas but reflects a comfortable living standard for the region. Median home values in the area are assessed at $226,084, indicating a relatively affordable market for homeownership.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. However, it's important to note that specific market rent data for ZIP 38575 is currently unavailable, making it challenging to compare the FMR against local market conditions directly. Despite this lack of precise local data, the FMR can still serve as a benchmark for understanding the potential rental income in the area.
Given the low percentage of renters and the modest median income, ZIP 38575 may not be an ideal location for hands-off voucher operators who rely on a higher concentration of tenants eligible for Section 8 assistance. The limited demand for subsidized housing could result in fewer opportunities for such investors. On the other hand, for hands-on value-add buyers looking to improve and manage properties, there might be untapped potential. By enhancing the quality of rental units and actively managing them, these investors could cater to the local needs and possibly command rents closer to the FMR, especially if they target the slightly above-average income level of the area.
In summary, while the overall environment suggests a niche market for rental investments, particularly those tied to government assistance programs, it also opens up possibilities for investors willing to engage in property management and enhancement activities. The modest median income and low renter ratio imply a need for affordability, which aligns well with the FMR, offering a clear path for hands-on investors to find success.
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.