For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 38175 (Memphis, TN) is $1,300 a month. That is up 1.6% from $1,280 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, 38175 is tied for the 21st-highest two-bedroom rent (county range $1,000–$1,950). The median county two-bedroom FMR in Tennessee is $1,048, so ZIP 38175 is 24% above it.
FY 2027 rent by bedroom
FY 2027 fair market rent by bedroom for 38175
Bedrooms
FY 2026
FY 2027
Change
90–110% range
Studio
$1,070
$1,090
+1.9%
$981–$1,199
1BR
$1,160
$1,190
+2.6%
$1,071–$1,309
2BR
$1,280
$1,300
+1.6%
$1,170–$1,430
3BR
$1,690
$1,720
+1.8%
$1,548–$1,892
4BR
$1,970
$1,980
+0.5%
$1,782–$2,178
Fair market rent history, FY 2023–2027
Fair market rent by fiscal year for 38175
Fiscal year
Studio
1BR
2BR
3BR
4BR
FY 2027
$1,090
$1,190
$1,300
$1,720
$1,980
FY 2026
$1,070
$1,160
$1,280
$1,690
$1,970
FY 2025
$1,110
$1,210
$1,360
$1,790
$2,090
FY 2024
$1,030
$1,150
$1,300
$1,710
$2,000
FY 2023
$810
$910
$1,040
$1,380
$1,600
Questions about ZIP 38175 rents
How much will Section 8 pay for a two-bedroom in ZIP 38175?
Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With a two-bedroom FMR of $1,300, that basic range is $1,170 to $1,430 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 38175 in?
ZIP 38175 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 38175 for FY 2027?
The two-bedroom FMR rose 1.6%, from $1,280 in FY 2026 to $1,300 in FY 2027. Since FY 2023 it has risen 25.0%.
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