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Shelby County/Memphis/38126

38126

ZIPSAFMR
Shelby County, TN
Zillow

ZIP Investment Score

133High yield potential

095130300
BRFMR
Eff. Rent
0 BR$840$920
1 BR$910$870
2 BR$1,000$800
3 BR$1,310$1,250
4 BR$1,510$1,220
5 BR$1,736Not available
6 BR$1,997Not available
7 BR$2,297Not available
8 BR$2,641Not available

Purchase Price Calculator

Maximum purchase price
$56,963

Cost breakdown

+Likely effective rent$800
HUD FMR$1,000
Market rentUsed$800
Est. payment standard (90%)$900
-Principal and interest-$288
Loan amount$45,571
Down payment$11,393
Rate6.50%
Term30 years
-Operating costs-$312
Property taxes-$57
Insurance-$175
Utilities$0
HOA$0
Management-$80
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$13,213(116.0% ROI)
Projected value
$61,343
Return breakdown
Property appreciation+$4,380
Loan principal paid down+$1,633
Rental cash flow+$7,200
5-year hold
+$22,397(196.6% ROI)
Projected value
$64,449
Return breakdown
Property appreciation+$7,485
Loan principal paid down+$2,912
Rental cash flow+$12,000
10-year hold
+$46,892(411.6% ROI)
Projected value
$72,918
Return breakdown
Property appreciation+$15,955
Loan principal paid down+$6,938
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.79
1 BR
1.05
2 BR
1.25
3 BR
1.05
4 BR
1.24
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 38126 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38126 (Memphis, TN) is $1,000 a month. That is down 5.7% from $1,060 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, 38126 has the 65th-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38126 is 5% below it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 38126
BedroomsFY 2027Change90–110% range
Studio$8400.0%$756–$924
1BR$910−3.2%$819–$1,001
2BR$1,000−5.7%$900–$1,100
3BR$1,310−5.8%$1,179–$1,441
4BR$1,510−6.8%$1,359–$1,661

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 38126
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$840$910$1,000$1,310$1,510
FY 2026$840$940$1,060$1,390$1,620
FY 2025$930$1,040$1,170$1,540$1,800
FY 2024$720$820$930$1,230$1,430
FY 2023$630$720$830$1,100$1,270

Two-bedroom rent in nearby Shelby County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 38126
38119$1,460+46.0%
38120$1,680+68.0%
38122$1,240+24.0%
38124$1,300+30.0%
38125$1,590+59.0%
38126Current$1,000—
38127$1,180+18.0%
38128$1,350+35.0%
38130$1,300+30.0%
38131$1,300+30.0%
38132$1,180+18.0%
38133$1,590+59.0%

Questions about ZIP 38126 rents

How much will Section 8 pay for a two-bedroom in ZIP 38126?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,000, that basic range is $900 to $1,100 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 38126 in?

ZIP 38126 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 38126 for FY 2027?

The two-bedroom FMR fell 5.7%, from $1,060 in FY 2026 to $1,000 in FY 2027. Since FY 2023 it has risen 20.5%.

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