Location: Memphis, TN | Metro: Memphis, TN-MS-AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 72325 presents several challenges for potential Section 8 landlords. Tenant turnover can be higher due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $940 for FY 2024. This gap might make it difficult to find tenants willing to pay the higher market rates, leading to frequent changes in occupancy.
Vacancy exposure is another concern. The Days on Market (DOM) figure is currently unavailable, which means there's an unknown period during which a property might remain vacant. This uncertainty can translate into lost rental income and increased management costs.
Deferred maintenance is also a significant risk. With the typical home value and median income both listed as N/A, it's unclear how much financial cushion homeowners have to maintain their properties. This lack of information makes it hard to predict the condition of rental properties over time, potentially resulting in costly repairs and renovations.
However, these risks must be weighed against the positive aspects of the ZIP code. The 100.0% renter share indicates that the majority of residents are renters, creating a robust demand for rental housing. High renter density typically translates into a greater number of Section 8 voucher holders seeking housing, which can provide a steady stream of qualified tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 72325 is moderate. While there are significant risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a strong counterbalance, ensuring a consistent pool of potential tenants.
Data Sources: FMR data from HUD (2027). 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.