Location: Jackson County, TN | Metro: Macon County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 38588 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $930. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects local rental market conditions more accurately than broader regional averages.
However, the local market rent, according to Census ACS data, is currently at $570. This discrepancy highlights the potential challenges and opportunities landlords face when participating in the Section 8 program. The voucher system aims to bridge the gap between the SAFMR and the actual rent paid by tenants, but it's important to understand exactly how this works.
A Section 8 voucher pays the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. Additionally, utility allowances are included in the reimbursement. To illustrate, if a tenant's income is such that their 30% contribution is $200, the voucher would cover the remaining $730 of the SAFMR. However, since the local market rent is $570, the landlord would receive $570 from the tenant plus the $730 from the voucher, totaling $1,300.
This example assumes the tenant's portion is less than the local market rent, which often isn't the case. If the tenant's portion is higher, say $300, then the voucher would only cover up to $630 of the SAFMR, still resulting in a total payment to the landlord of $930. But since the local market rent is lower at $570, the landlord would receive the full $570 from the tenant and the remaining $360 from the voucher, again totaling $930.
In ZIP 38588, landlords should expect a reimbursement that aligns with the SAFMR of $930, regardless of the local market rent. The key point is that the voucher system aims to make up the difference to ensure the landlord receives the SAFMR amount.
Given these numbers, landlords in ZIP 38588 will find themselves with a surplus when renting a two-bedroom unit at the local market rate. The typical reimbursement gap or surplus in this scenario is a surplus of $360, calculated as the difference between the SAFMR ($930) and the local market rent ($570).
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.