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Shelby County/Memphis/38127

38127

ZIPSAFMR
Shelby County, TN
Zillow

ZIP Investment Score

115Above average

095130300
BRFMR
Eff. Rent
0 BR$990$900
1 BR$1,080$870
2 BR$1,180$950
3 BR$1,560$1,130
4 BR$1,800$1,380
5 BR$2,070Not available
6 BR$2,380Not available
7 BR$2,738Not available
8 BR$3,148Not available

Purchase Price Calculator

Maximum purchase price
$79,253

Cost breakdown

+Likely effective rent$950
HUD FMR$1,180
Market rentUsed$950
Est. payment standard (90%)$1,060
-Principal and interest-$401
Loan amount$63,402
Down payment$15,851
Rate6.50%
Term30 years
-Operating costs-$349
Property taxes-$79
Insurance-$175
Utilities$0
HOA$0
Management-$95
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$15,565(98.2% ROI)
Projected value
$85,347
Return breakdown
Property appreciation+$6,094
Loan principal paid down+$2,272
Rental cash flow+$7,200
5-year hold
+$26,465(167.0% ROI)
Projected value
$89,668
Return breakdown
Property appreciation+$10,415
Loan principal paid down+$4,051
Rental cash flow+$12,000
10-year hold
+$55,850(352.4% ROI)
Projected value
$101,451
Return breakdown
Property appreciation+$22,198
Loan principal paid down+$9,652
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
1.10
1 BR
1.24
2 BR
1.24
3 BR
1.38
4 BR
1.30
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 38127 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38127 (Memphis, TN) is $1,180 a month. That is down 0.8% from $1,190 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, 38127 is tied for the 55th-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38127 is 13% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 38127
BedroomsFY 2027Change90–110% range
Studio$9900.0%$891–$1,089
1BR$1,0800.0%$972–$1,188
2BR$1,180−0.8%$1,062–$1,298
3BR$1,560−0.6%$1,404–$1,716
4BR$1,800−1.6%$1,620–$1,980

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 38127
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$990$1,080$1,180$1,560$1,800
FY 2026$990$1,080$1,190$1,570$1,830
FY 2025$1,000$1,100$1,230$1,620$1,890
FY 2024$920$1,020$1,160$1,530$1,780
FY 2023$730$820$940$1,240$1,440

Two-bedroom rent in nearby Shelby County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 38127
38120$1,680+42.4%
38122$1,240+5.1%
38124$1,300+10.2%
38125$1,590+34.7%
38126$1,000−15.3%
38127Current$1,180—
38128$1,350+14.4%
38130$1,300+10.2%
38131$1,300+10.2%
38132$1,1800.0%
38133$1,590+34.7%
38134$1,270+7.6%

Questions about ZIP 38127 rents

How much will Section 8 pay for a two-bedroom in ZIP 38127?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,180, that basic range is $1,062 to $1,298 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 38127 in?

ZIP 38127 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 38127 for FY 2027?

The two-bedroom FMR fell 0.8%, from $1,190 in FY 2026 to $1,180 in FY 2027. Since FY 2023 it has risen 25.5%.

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