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Shelby County/Memphis/38120

38120

ZIPSAFMR
Shelby County, TN
Zillow

ZIP Investment Score

68Below average

095130300
BRFMR
Eff. Rent
0 BR$1,410$1,550
1 BR$1,540$1,260
2 BR$1,680$1,410
3 BR$2,220$1,690
4 BR$2,560$2,490
5 BR$2,944Not available
6 BR$3,386Not available
7 BR$3,893Not available
8 BR$4,477Not available

Purchase Price Calculator

Maximum purchase price
$147,609

Cost breakdown

+Likely effective rent$1,410
HUD FMR$1,680
Market rentUsed$1,410
Est. payment standard (90%)$1,510
-Principal and interest-$746
Loan amount$118,087
Down payment$29,522
Rate6.50%
Term30 years
-Operating costs-$464
Property taxes-$148
Insurance-$175
Utilities$0
HOA$0
Management-$141
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$22,781(77.2% ROI)
Projected value
$158,959
Return breakdown
Property appreciation+$11,350
Loan principal paid down+$4,231
Rental cash flow+$7,200
5-year hold
+$38,942(131.9% ROI)
Projected value
$167,006
Return breakdown
Property appreciation+$19,397
Loan principal paid down+$7,545
Rental cash flow+$12,000
10-year hold
+$83,320(282.2% ROI)
Projected value
$188,952
Return breakdown
Property appreciation+$41,343
Loan principal paid down+$17,977
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.84
1 BR
1.22
2 BR
1.19
3 BR
1.31
4 BR
1.03
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 38120 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38120 (Memphis, TN) is $1,680 a month. That is up 5.0% from $1,600 in FY 2026. Memphis is in the Memphis, TN-MS-AR HUD Metro FMR Area, where HUD requires housing authorities to set voucher payment standards by ZIP code using Small Area FMRs. Among 65 ZIP codes in Shelby County, 38120 has the 7th-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38120 is 60% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 38120
BedroomsFY 2027Change90–110% range
Studio$1,410+6.0%$1,269–$1,551
1BR$1,540+6.2%$1,386–$1,694
2BR$1,680+5.0%$1,512–$1,848
3BR$2,220+5.2%$1,998–$2,442
4BR$2,560+4.1%$2,304–$2,816

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 38120
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,410$1,540$1,680$2,220$2,560
FY 2026$1,330$1,450$1,600$2,110$2,460
FY 2025$1,370$1,500$1,680$2,210$2,590
FY 2024$1,250$1,390$1,570$2,070$2,410
FY 2023$970$1,090$1,250$1,650$1,920

Two-bedroom rent in nearby Shelby County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 38120
38113$1,300−22.6%
38114$1,070−36.3%
38115$1,360−19.0%
38116$1,250−25.6%
38117$1,510−10.1%
38118$1,250−25.6%
38119$1,460−13.1%
38120Current$1,680—
38122$1,240−26.2%
38124$1,300−22.6%
38125$1,590−5.4%
38126$1,000−40.5%

Questions about ZIP 38120 rents

How much will Section 8 pay for a two-bedroom in ZIP 38120?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,680, that basic range is $1,512 to $1,848 a month. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 38120 in?

ZIP 38120 is in the Memphis, TN-MS-AR HUD Metro FMR Area. HUD requires Small Area FMRs in this area, so payment standards are set by ZIP code.

How much did fair market rent change in ZIP 38120 for FY 2027?

The two-bedroom FMR rose 5.0%, from $1,600 in FY 2026 to $1,680 in FY 2027. Since FY 2023 it has risen 34.4%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentMemphis, TN fair market rentTN statewide rentsWhat is SAFMR?Data sources