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 | $860 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $159,060 | 0.85% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 72301, located within the Memphis, TN-MS-AR HUD Metro FMR Area, reveals several key points that should inform investment strategies. The HUD Fair Market Rent (FMR) for ZIP 72301 in fiscal year 2024 is set at $1000. In comparison, the market rent based on Census ACS data stands at $871. This indicates that voucher tenants can cashflow at the HUD FMR, which is significantly higher than the average market rent.
To further analyze the potential of this area, consider the median home value, which is $132,123. Given the HUD FMR of $1000, the rent-to-price ratio for ZIP 72301 is approximately 0.91%. This suggests that rental income represents a relatively low percentage of the property's value, making it less competitive compared to homeownership in terms of financial returns. However, this also means that rental properties are likely to be more affordable for those seeking housing assistance.
The data does not provide a median Days on Market (DOM) or a percentage of homes that have experienced price cuts, but these factors typically influence the rent-versus-buy dynamics. In the absence of such information, we can infer that the current market conditions favor rental investments over home purchases due to the lower median home value and the disparity between market rent and HUD FMR.
The strongest investor angle in ZIP 72301 is cashflow. With the HUD FMR exceeding the market rent, landlords can expect positive cashflow from voucher tenants, which provides a stable and predictable source of income. This makes ZIP 72301 an attractive location for small-portfolio investors looking to generate reliable rental income through Section 8 participation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.