Section 8 Fair Market Rent (FMR) for ZIP 38672 - 2027

Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area

Investment Score for ZIP 38672

N/A

Monthly Rent (2BR)

$1,950

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,640
1 Bedroom	$1,780
2 Bedrooms	$1,950
3 Bedrooms	$2,570
4 Bedrooms	$2,970
5 Bedrooms	$3,445
6 Bedrooms	$3,858
7 Bedrooms	$4,167
8 Bedrooms	$4,375

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,570	$306,640	0.84%	C
4BR	$2,970	$344,312	0.86%	C
5BR	$3,445	$419,397	0.82%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

16,436

Median Household Income

$116,184

Housing Units

6,194

Renter Percentage

11.6%

Occupancy Rate

93.6%

Renter Occupied

673

The ZIP code 38672, located in Shelby County, Tennessee, encompasses a diverse mix of residential areas that cater to both homeowners and renters. The region's proximity to Memphis and its relatively low density of rental properties make it an attractive market for landlords and small-portfolio investors seeking stable returns.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 38672 for fiscal year 2024 is set at $1,950, providing a benchmark for rental pricing.
The Zillow Observed Rent Index (ZORI) indicates that the average market rent for a similar unit is slightly higher at $2,253, suggesting a competitive rental environment.
The median home value in the area stands at $330,930, reflecting a moderate cost of living relative to larger urban centers.
Renters constitute 11.6% of the housing market, indicating a smaller but steady demand for rental properties.
Average days on market (DOM) for rental listings is 70 days, which is a reasonable timeframe for finding tenants without excessive vacancy periods.
The median household income in ZIP 38672 is $116,184, providing a strong financial base for potential tenants and supporting higher rental rates.

Investors looking to enter the ZIP 38672 market can expect a balanced opportunity where rental prices are above the Fair Market Rent, driven by a slightly elevated market rent index. Despite the lower renter share, the high median income suggests that there is a robust tenant pool capable of paying competitive rents. With a days on market figure of 70 days, landlords can anticipate a timely leasing process. Overall, the area presents a solid investment opportunity for those willing to navigate a moderately sized rental market with good financial underpinnings.

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.