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 | $1,110 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,740 | $246,731 | 0.71% | D |
| 4BR | $2,010 | $294,077 | 0.68% | D |
U.S. Census Bureau data (2024)
1220 is the Fair Market Rent (FMR) for ZIP code 38680 for fiscal year 2024, indicating the maximum amount Section 8 participants can pay for a two-bedroom rental unit. 2005 is the Zillow Observed Rental Index (ZORI), which represents the average market rent for the same area, suggesting landlords could potentially charge nearly $800 more than the FMR if they are not participating in the Section 8 program. 260150 is the median home value in this ZIP code, providing a benchmark for property values but also highlighting the disparity between home ownership and rental costs. 31.4 is the percentage of households that are renters, illustrating a significant portion of the population relying on rental housing, which is crucial for landlords to consider when setting their investment strategies. 59503 is the median income figure, revealing the financial capacity of residents in ZIP 38680, essential for understanding the local rental market dynamics. N/A indicates that there is no available data on the average days on market (DOM) for rental listings, which might suggest a stable rental market where units are leased out quickly. N/A also signifies that there is no reported percentage of price-cut share among rental properties, possibly implying that landlords maintain steady pricing without frequent reductions.
Given these figures, it's evident that ZIP 38680 offers a balanced opportunity for landlords and small-portfolio investors. The gap between the FMR and market rent suggests potential for higher returns outside the Section 8 program, while the substantial renter share and median income indicate a robust demand for rental properties. However, the lack of DOM and price-cut share data could be seen as a positive sign of a smoothly functioning rental market. In conclusion, 38680 presents a viable option for Section 8 participation, offering stability and predictable cash flows for those willing to adhere to the program's guidelines.
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.