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Shelby County/Memphis/38122

38122

ZIPSAFMR
Shelby County, TN
Zillow

ZIP Investment Score

123Above average

095130300
BRFMR
Eff. Rent
0 BR$1,040$1,050
1 BR$1,130$960
2 BR$1,240$1,220
3 BR$1,640$1,440
4 BR$1,890$1,890
5 BR$2,174Not available
6 BR$2,500Not available
7 BR$2,874Not available
8 BR$3,306Not available

Purchase Price Calculator

Maximum purchase price
$119,375

Cost breakdown

+Likely effective rent$1,220
HUD FMR$1,240
Market rentUsed$1,220
Est. payment standard (99%)$1,230
-Principal and interest-$604
Loan amount$95,500
Down payment$23,875
Rate6.50%
Term30 years
-Operating costs-$416
Property taxes-$119
Insurance-$175
Utilities$0
HOA$0
Management-$122
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$19,800(82.9% ROI)
Projected value
$128,554
Return breakdown
Property appreciation+$9,179
Loan principal paid down+$3,422
Rental cash flow+$7,200
5-year hold
+$33,788(141.5% ROI)
Projected value
$135,062
Return breakdown
Property appreciation+$15,687
Loan principal paid down+$6,102
Rental cash flow+$12,000
10-year hold
+$71,974(301.5% ROI)
Projected value
$152,810
Return breakdown
Property appreciation+$33,435
Loan principal paid down+$14,539
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.99
1 BR
1.18
2 BR
1.02
3 BR
1.14
4 BR
1.00
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 38122 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38122 (Memphis, TN) is $1,240 a month. That is unchanged from 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, 38122 is tied for the 52nd-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38122 is 18% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 38122
BedroomsFY 2027Change90–110% range
Studio$1,040+1.0%$936–$1,144
1BR$1,130+0.9%$1,017–$1,243
2BR$1,2400.0%$1,116–$1,364
3BR$1,6400.0%$1,476–$1,804
4BR$1,890−1.0%$1,701–$2,079

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 38122
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,040$1,130$1,240$1,640$1,890
FY 2026$1,030$1,120$1,240$1,640$1,910
FY 2025$1,080$1,190$1,330$1,750$2,050
FY 2024$1,010$1,120$1,270$1,670$1,950
FY 2023$760$860$980$1,300$1,500

Two-bedroom rent in nearby Shelby County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 38122
38115$1,360+9.7%
38116$1,250+0.8%
38117$1,510+21.8%
38118$1,250+0.8%
38119$1,460+17.7%
38120$1,680+35.5%
38122Current$1,240—
38124$1,300+4.8%
38125$1,590+28.2%
38126$1,000−19.4%
38127$1,180−4.8%
38128$1,350+8.9%

Questions about ZIP 38122 rents

How much will Section 8 pay for a two-bedroom in ZIP 38122?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,240, that basic range is $1,116 to $1,364 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 38122 in?

ZIP 38122 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 38122 for FY 2027?

The two-bedroom FMR was unchanged at $1,240 in FY 2027. Since FY 2023 it has risen 26.5%.

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