Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $153,717 | 0.96% | C |
| 3BR | $1,940 | $196,476 | 0.99% | C |
| 4BR | $2,240 | $277,410 | 0.81% | C |
U.S. Census Bureau data (2024)
1340 is the Fair Market Rent (FMR) for ZIP 38637, Horn Lake, MS, set for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a rental unit under the Section 8 program. In comparison, the Zillow Observed Rent Index (ZORI), which reflects the average market rent, stands at 1495. This indicates that landlords participating in Section 8 might see a slight decrease in potential rental income compared to market rates. However, the median home value in this area is 202246, suggesting a relatively stable housing market. The renter share is 41.9%, which means nearly half of the households in Horn Lake prefer renting over owning, making it a viable market for rental properties. The median income of 53311 provides insight into the economic profile of the residents, indicating that many may qualify for the Section 8 program. The day DOM (Days on Market) is listed as N/A, possibly due to limited data or recent changes in reporting. Lastly, the price-cut share is 0.2%, which is very low, suggesting that once a property is priced correctly, it's unlikely to need further adjustments. Given these numbers, the verdict on Section 8 participation in Horn Lake, MS is positive, with a strong tenant base and reasonable competition from market rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.