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 72332, located in the Memphis, TN-MS-AR HUD Metro FMR Area, presents an interesting opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area stands at $930 per month for fiscal year 2024. In contrast, the market rent based on Census ACS data is significantly lower at $635 per month.
This discrepancy means that voucher tenants can generate positive cash flow at the HUD FMR rate. Landlords and small-portfolio investors can expect to see a substantial difference between the actual market rent and the amount reimbursed by the Section 8 program, allowing for a margin of profit above the typical rental rates.
The median home value in ZIP 72332 is not available, which makes it challenging to derive a precise rent-to-price ratio. However, the higher reimbursement rate compared to the market rent suggests that the rent-to-price ratio would likely favor rental properties over homeownership, making rentals a more attractive option for many tenants in this area.
With the median Days on Market (DOM) and percentage of price cuts also not available, we cannot directly assess the rent-versus-buy dynamics. Nonetheless, given the favorable cash flow potential, rental properties remain a strong investment choice in this ZIP code.
The strongest investor angle in ZIP 72332 is cash flow, due to the significant gap between the HUD FMR and the current market rent. This allows investors to benefit from higher rental income without having to charge premium rents, providing a solid financial advantage in the local real estate market.
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.