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 72384, located within the Memphis, TN-MS-AR HUD Metro FMR Area, serves as a strategic cash-flow anchor in a Section 8 portfolio. The Fair Market Rent (FMR) for the area is set at $930 for fiscal year 2024, while the market rent stands at $830. This creates a positive spread of $100 per unit, ensuring that landlords receive above-market rents through Section 8 vouchers.
The higher guaranteed rent provides stability and predictable cash flow, crucial for maintaining a healthy investment portfolio. Unlike speculative investments that rely on future appreciation, the ZIP 72384 offers immediate financial benefits. Landlords can count on consistent rental income without the need to constantly adjust rates based on market fluctuations.
Although the median home value is not available, the significant renter share of 42.3% indicates a strong demand for rental properties. Additionally, the median income of $51,250 suggests that residents have the financial capacity to participate in the Section 8 program, further supporting the viability of this ZIP code as a cash-flow anchor.
In conclusion, ZIP 72384 is best categorized as a cash-flow anchor due to its favorable spread between the HUD FMR and market rent, providing landlords with a reliable source of income that outperforms local market conditions. This makes it an attractive option for those looking to stabilize their real estate investment portfolios with secure, above-market rental income.
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.