Skip to main content
Loading page
Shelby County/Memphis/38125

38125

ZIPSAFMR
Shelby County, TN
Zillow

ZIP Investment Score

103Above average

095130300
BRFMR
Eff. Rent
0 BR$1,340$1,470
1 BR$1,460$1,480
2 BR$1,590$1,550
3 BR$2,100$1,820
4 BR$2,420$2,140
5 BR$2,783Not available
6 BR$3,200Not available
7 BR$3,681Not available
8 BR$4,233Not available

Purchase Price Calculator

Maximum purchase price
$168,413

Cost breakdown

+Likely effective rent$1,550
HUD FMR$1,590
Market rentUsed$1,550
Est. payment standard (98%)$1,560
-Principal and interest-$852
Loan amount$134,730
Down payment$33,683
Rate6.50%
Term30 years
-Operating costs-$498
Property taxes-$168
Insurance-$175
Utilities$0
HOA$0
Management-$155
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$24,976(74.2% ROI)
Projected value
$181,362
Return breakdown
Property appreciation+$12,949
Loan principal paid down+$4,827
Rental cash flow+$7,200
5-year hold
+$42,739(126.9% ROI)
Projected value
$190,544
Return breakdown
Property appreciation+$22,131
Loan principal paid down+$8,608
Rental cash flow+$12,000
10-year hold
+$91,681(272.2% ROI)
Projected value
$215,583
Return breakdown
Property appreciation+$47,170
Loan principal paid down+$20,511
Rental cash flow+$24,000

Public Housing Authority

Loading Public Housing Authority

Rolodex

Loading Rolodex

Market Alignment

Studio
0.76
1 BR
0.98
2 BR
1.03
3 BR
1.15
4 BR
1.13
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 38125 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38125 (Memphis, TN) is $1,590 a month. That is up 2.6% from $1,550 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, 38125 is tied for the 11th-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38125 is 52% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 38125
BedroomsFY 2027Change90–110% range
Studio$1,340+3.9%$1,206–$1,474
1BR$1,460+4.3%$1,314–$1,606
2BR$1,590+2.6%$1,431–$1,749
3BR$2,100+2.4%$1,890–$2,310
4BR$2,420+1.7%$2,178–$2,662

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 38125
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$1,340$1,460$1,590$2,100$2,420
FY 2026$1,290$1,400$1,550$2,050$2,380
FY 2025$1,350$1,470$1,650$2,170$2,540
FY 2024$1,270$1,410$1,600$2,110$2,460
FY 2023$980$1,100$1,260$1,670$1,930

Two-bedroom rent in nearby Shelby County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 38125
38118$1,250−21.4%
38119$1,460−8.2%
38120$1,680+5.7%
38122$1,240−22.0%
38124$1,300−18.2%
38125Current$1,590—
38126$1,000−37.1%
38127$1,180−25.8%
38128$1,350−15.1%
38130$1,300−18.2%
38131$1,300−18.2%
38132$1,180−25.8%

Questions about ZIP 38125 rents

How much will Section 8 pay for a two-bedroom in ZIP 38125?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,590, that basic range is $1,431 to $1,749 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 38125 in?

ZIP 38125 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 38125 for FY 2027?

The two-bedroom FMR rose 2.6%, from $1,550 in FY 2026 to $1,590 in FY 2027. Since FY 2023 it has risen 26.2%.

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