For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38132 (Memphis, TN) is $1,180 a month. That is down 1.7% from $1,200 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, 38132 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 38132 is 13% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for 38132
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$1,000
$990
−1.0%
$891–$1,089
1BR
$1,080
$1,070
−0.9%
$963–$1,177
2BR
$1,200
$1,180
−1.7%
$1,062–$1,298
3BR
$1,580
$1,550
−1.9%
$1,395–$1,705
4BR
$1,840
$1,790
−2.7%
$1,611–$1,969
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for 38132
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$990
$1,070
$1,180
$1,550
$1,790
FY 2026
$1,000
$1,080
$1,200
$1,580
$1,840
FY 2025
$1,000
$1,090
$1,220
$1,610
$1,890
FY 2024
$920
$1,020
$1,160
$1,530
$1,780
FY 2023
$810
$910
$1,040
$1,380
$1,600
Two-bedroom rent in nearby Shelby County ZIP codes
How much will Section 8 pay for a two-bedroom in ZIP 38132?
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 38132 in?
ZIP 38132 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 38132 for FY 2027?
The two-bedroom FMR fell 1.7%, from $1,200 in FY 2026 to $1,180 in FY 2027. Since FY 2023 it has risen 13.5%.
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