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 | $1,040 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,680 | $315,565 | 0.53% | F |
| 4BR | $1,960 | $385,923 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP code 38651, located within the Memphis, TN-MS-AR HUD Metro FMR Area, exhibits several characteristics that distinguish it from other typical ZIP codes in the region. The Fair Market Rent (FMR) for 38651 in fiscal year 2024 is set at $1510. This figure represents the upper limit for what a landlord can charge for a rental property under the Section 8 program. In comparison, the actual market rent in 38651 is notably lower at $796, indicating that landlords could potentially receive a higher rent payment through the Section 8 program than they would in the open market.
The median home value in 38651 stands at $355,633. While this is a substantial amount, it is important to note that the home values within the broader Memphis, TN-MS-AR HUD Metro FMR Area can vary widely. A home value of $355,633 suggests that 38651 is neither a low-value area nor a particularly high-value premium sub-market. Instead, it appears to be a mid-tier neighborhood within the larger metropolitan context.
The renter share in 38651 is 7.6%, which is relatively low compared to many urban areas where renter shares can be significantly higher. However, the combination of a below-average market rent with a modest renter share does suggest that 38651 could be an attractive location for landlords participating in the Section 8 program. The disparity between the market rent and the FMR indicates a potential value pocket for Section 8 participants, as the gap between the two figures can represent additional income for landlords.
In summary, ZIP code 38651 presents itself as a mid-tier neighborhood within the Memphis, TN-MS-AR HUD Metro FMR Area, with a median home value of $355,633 and a market rent of $796. The FMR of $1510 for the zip code in fiscal year 2024 offers landlords an opportunity to earn more than the typical market rent, making it a potentially valuable investment for those interested in Section 8 properties. Despite the low renter share, the financial metrics suggest that 38651 could serve as a sweet spot for Section 8 investments due to the favorable FMR-to-market-rent ratio.
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.