Section 8 Payment Standards — Memphis, Tennessee (FY 2026)
HUD Small Area Fair Market Rent (SAFMR) data for Memphis ZIP codes, plus how Section 8 rent compares to typical market asking rents.
Shelby County pairs affordable acquisitions with HUD rents that can exceed estimated market rent on the same property.
County est. 2BR SAFMR
$1,274
County median home value
$222,012
Est. Section 8 yield
6.9%
On a typical Memphis county home, HUD's 2BR limit ($1,274/mo) vs an estimated market asking rent (~$1,776/mo) suggests a +-$502/mo Section 8 premium before utilities, payment standard adjustments, and rent reasonableness.
Sample Memphis ZIP codes — FY 2026 SAFMR
Payment standards vary by ZIP and bedroom count. Always confirm current limits with the local housing authority before underwriting a deal.
| ZIP | 0BR | 1BR | 2BR | 3BR | 4BR |
|---|---|---|---|---|---|
| 38103 | $1,590 | $1,730 | $1,910 | $2,520 | $2,940 |
| 38106 | $960 | $1,040 | $1,150 | $1,520 | $1,770 |
| 38114 | $910 | $990 | $1,090 | $1,440 | $1,680 |
Why Section 8 rent matters in Memphis
Most investors underwrite Memphis rentals using Zillow or market asking rent. Section 8 uses HUD SAFMR payment standards — and in many Tennessee markets the gap between HUD rent and market rent is what makes a property cash-flow.
Local PHAs may set payment standards between 90% and 110% of SAFMR, subtract utility allowances, and run rent reasonableness tests. Use full SAFMR as a ceiling, not a guarantee on every door.
Search live Memphis listings scored on Section 8 rent
Rich from Section 8 merges live for-sale inventory in Memphis, TN with official HUD SAFMR data, rent gap scoring, and instant cash-flow underwriting — not Zillow rent guesses.
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