Location: Overton County, TN | Metro: Overton County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 38580 in Overton County, Tennessee, reveals several key points for potential real-estate investors focusing on Section 8 properties.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $930. However, the current market rent, as per Census ACS data, stands at $1,138. This means that landlords participating in the Section 8 program will receive less than the market rate, resulting in a shortfall of $208 per unit per month. The math does not favor landlords looking to maximize their rental income based solely on the FMR versus market rent comparison.
Secondly, regarding the affordability of property acquisition, the median home value in ZIP 38580 is $302,326. Unfortunately, specific data on the number of days on market (DOM) and the percentage of homes requiring price cuts are not available. Without these figures, it's challenging to assess how quickly and at what price adjustments homes might sell. Nonetheless, the median home value suggests that purchasing a property in this area would be a significant investment, particularly for small-portfolio investors.
Lastly, the analysis considers tenant demand. With a total population of 1,609, the renter share is 20.8%. This indicates that there are approximately 335 potential renters in the area. While the renter share is not exceptionally high, it still represents a substantial portion of the local population, suggesting that there is enough demand to fill rental units.
In summary, while ZIP 38580 offers a notable tenant demand, the discrepancy between the FMR and market rent rates poses a challenge for maximizing rental income. The median home value implies that acquiring properties in this area would require a considerable financial commitment. Therefore, landlords and small-portfolio investors should carefully consider these factors before entering the market in 38580, particularly focusing on the economic viability of accepting lower rents under the Section 8 program compared to market rates.
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.