For FY 2027, HUD's Fair Market Rent for a two-bedroom unit in ZIP 38161 (Memphis, TN) is $1,301 a month. That is up 2.1% from $1,274 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. The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38161 is 24% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for 38161
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$1,060
$1,095
+3.3%
$986–$1,205
1BR
$1,154
$1,191
+3.2%
$1,072–$1,310
2BR
$1,274
$1,301
+2.1%
$1,171–$1,431
3BR
$1,683
$1,717
+2.0%
$1,545–$1,889
4BR
$1,959
$1,981
+1.1%
$1,783–$2,179
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for 38161
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$1,095
$1,191
$1,301
$1,717
$1,981
FY 2026
$1,060
$1,154
$1,274
$1,683
$1,959
FY 2025
$1,105
$1,207
$1,355
$1,781
$2,086
FY 2024
$1,031
$1,146
$1,298
$1,711
$1,995
FY 2023
$800
$902
$1,032
$1,365
$1,584
Questions about ZIP 38161 rents
How much will Section 8 pay for a two-bedroom in ZIP 38161?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,301, that basic range is $1,171 to $1,431 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 38161 in?
ZIP 38161 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 38161 for FY 2027?
The two-bedroom FMR rose 2.1%, from $1,274 in FY 2026 to $1,301 in FY 2027. Since FY 2023 it has risen 26.1%.
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 Fair Market Rents. 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