FY2027 Fair Market Rent · Tennessee
Shelby County Fair Market Rent & Income Limits
HUD's FY2027 Fair Market Rent for a two-bedroom home in Shelby County, TN is $1,301 a month, up 2.1% from FY2026. The area median family income is $92,700, and a family of four counts as low income up to $74,150 a year.
Fair Market Rent by unit size
FY2027 FY2026
Fair Market Rents are gross rents: rent plus the cost of all utilities except phone, cable and internet.
Check your household
Enter your household size and total yearly income before taxes to see which HUD income category it falls in for Shelby County, TN.
Low income (80% limit)
A household of 4 earning $72,150 is under the 80% limit of $74,150 for this area. At 30% of income it could pay about $1,804 a month for rent and utilities.
This is a quick comparison with HUD's published limits, not an eligibility decision. Programs count income in their own ways and many have waiting lists; the local housing agency or property decides.
Income limits in Shelby County
HUD's FY2026 income limits for Memphis, TN-MS-AR are based on a median family income of $92,700. Programs such as Housing Choice Vouchers, public housing and HOME use the 30%, 50% and 80% columns; Low-Income Housing Tax Credit properties use the 50% and 60% Multifamily Tax Subsidy Project limits.
| People | Extremely low30% / poverty | Very low50% | 60% (LIHTC)MTSP | Low income80% |
|---|---|---|---|---|
| 1 | $19,500 | $32,450 | $38,940 | $51,950 |
| 2 | $22,250 | $37,100 | $44,520 | $59,350 |
| 3 | $27,320 | $41,750 | $50,100 | $66,750 |
| 4 | $33,000 | $46,350 | $55,620 | $74,150 |
| 5 | $38,680 | $50,100 | $60,120 | $80,100 |
| 6 | $44,360 | $53,800 | $64,560 | $86,050 |
| 7 | $50,040 | $57,500 | $69,000 | $91,950 |
| 8 | $55,720 | $61,200 | $73,440 | $97,900 |
HERA Special area. Tax-credit properties placed in service before 2009 may use HUD's higher HERA hold-harmless 60% limits here: $58,560 for four people, against the regular $55,620.
Rent history
Since FY2017 the two-bedroom FMR here has gone from $835 to $1,301, up 55.8% over ten years. HUD has published a two-bedroom FMR for this area since FY1983, when it was $320.
What it takes to afford the rent
To keep a two-bedroom rent of $1,301 at no more than 30% of income, the usual affordability rule, a household needs about $52,000 a year. That is 56% of the area median family income of $92,700, so a typical family can afford it with room to spare.
| Unit | FY2027 | FY2026 | FY2025 | Income to affordat 30% |
|---|---|---|---|---|
| Studio | $1,095 | $1,060 | $1,105 | $43,800 |
| 1 bedroom | $1,191 | $1,154 | $1,207 | $47,600 |
| 2 bedrooms | $1,301 | $1,274 | $1,355 | $52,000 |
| 3 bedrooms | $1,717 | $1,683 | $1,781 | $68,700 |
| 4 bedrooms | $1,981 | $1,959 | $2,086 | $79,200 |
How Shelby County compares
Shelby County is part of the Memphis, TN-MS-AR HUD Metro FMR Area, together with Crittenden County, DeSoto County, Fayette County and Tipton County. HUD publishes one Fair Market Rent and one set of income limits for the whole area, so the numbers on this page apply in every county of it.
Shelby County has the 24th highest two-bedroom Fair Market Rent of the 95 counties in Tennessee; the population-weighted average across Tennessee is $1,381 and the nationwide average is $1,751.
Small Area FMRs by ZIP code
HUD also publishes Small Area Fair Market Rents for each ZIP code. In Shelby County the two-bedroom figure ranges from $1,000 to $1,950 across 62 ZIP codes, against the area-wide $1,301. Memphis, TN-MS-AR is one of HUD's mandatory Small Area FMR areas (designated 2023), so housing agencies there must set voucher payment standards from these ZIP-code rents.
| ZIP | Place | 2 BR SAFMR | 110% payment std. |
|---|---|---|---|
| 38139 | Germantown | $1,950 | $2,145 |
| 38138 | Germantown | $1,870 | $2,057 |
| 38002 | Arlington | $1,860 | $2,046 |
| 38135 | Memphis | $1,830 | $2,013 |
| 38018 | Cordova | $1,780 | $1,958 |
| 38103 | Memphis | $1,750 | $1,925 |
| 38120 | Memphis | $1,680 | $1,848 |
| 38029 | Ellendale | $1,670 | $1,837 |
| 38017 | Collierville | $1,660 | $1,826 |
| 38016 | Cordova | $1,600 | $1,760 |
| 38125 | Memphis | $1,590 | $1,749 |
| 38133 | Memphis | $1,590 | $1,749 |
| 38141 | Memphis | $1,570 | $1,727 |
| 38117 | Memphis | $1,510 | $1,661 |
| 38119 | Memphis | $1,460 | $1,606 |
| 38104 | Memphis | $1,450 | $1,595 |
| 38115 | Memphis | $1,360 | $1,496 |
| 38128 | Memphis | $1,350 | $1,485 |
| 38027 | Collierville | $1,300 | $1,430 |
| 38055 | Millington | $1,300 | $1,430 |
| 38083 | Millington | $1,300 | $1,430 |
| 38088 | Cordova | $1,300 | $1,430 |
| 38101 | Memphis | $1,300 | $1,430 |
| 38113 | Memphis | $1,300 | $1,430 |
| 38124 | Memphis | $1,300 | $1,430 |
| 38130 | Memphis | $1,300 | $1,430 |
| 38131 | Memphis | $1,300 | $1,430 |
| 38137 | Memphis | $1,300 | $1,430 |
| 38157 | Memphis | $1,300 | $1,430 |
| 38166 | Memphis | $1,300 | $1,430 |
| 38167 | Memphis | $1,300 | $1,430 |
| 38168 | Memphis | $1,300 | $1,430 |
| 38173 | Memphis | $1,300 | $1,430 |
| 38174 | Memphis | $1,300 | $1,430 |
| 38175 | Memphis | $1,300 | $1,430 |
| 38177 | Memphis | $1,300 | $1,430 |
| 38181 | Memphis | $1,300 | $1,430 |
| 38182 | Memphis | $1,300 | $1,430 |
| 38183 | Germantown | $1,300 | $1,430 |
| 38184 | Memphis | $1,300 | $1,430 |
| 38186 | Memphis | $1,300 | $1,430 |
| 38187 | Memphis | $1,300 | $1,430 |
| 38188 | Memphis | $1,300 | $1,430 |
| 38190 | Memphis | $1,300 | $1,430 |
| 38134 | Memphis | $1,270 | $1,397 |
| 38053 | Millington | $1,250 | $1,375 |
| 38054 | Millington | $1,250 | $1,375 |
| 38116 | Memphis | $1,250 | $1,375 |
| 38118 | Memphis | $1,250 | $1,375 |
| 38111 | Memphis | $1,240 | $1,364 |
| 38122 | Memphis | $1,240 | $1,364 |
| 38152 | Memphis | $1,240 | $1,364 |
| 38127 | Memphis | $1,180 | $1,298 |
| 38132 | Memphis | $1,180 | $1,298 |
| 38107 | Memphis | $1,120 | $1,232 |
| 38105 | Memphis | $1,090 | $1,199 |
| 38106 | Memphis | $1,080 | $1,188 |
| 38109 | Memphis | $1,080 | $1,188 |
| 38114 | Memphis | $1,070 | $1,177 |
| 38112 | Memphis | $1,050 | $1,155 |
| 38108 | Memphis | $1,010 | $1,111 |
| 38126 | Memphis | $1,000 | $1,100 |
Questions
What is the Fair Market Rent in Shelby County, TN for 2027?
For FY2027 (October 1, 2026 to September 30, 2027) HUD's Fair Market Rents in Shelby County, TN are $1,095 for a studio, $1,191 for one bedroom, $1,301 for two bedrooms, $1,717 for three and $1,981 for four bedrooms, per month including utilities.
What is the area median income in Shelby County, TN?
HUD's FY2026 median family income for the area is $92,700, up 1.8% from $91,100 in FY2025.
What is 80% of AMI in Shelby County, TN for a family of 4?
The FY2026 low-income limit (80%) for a household of four is $74,150 a year. The very low-income limit (50%) is $46,350 and the extremely low-income limit is $33,000.
What is the 60% AMI limit for tax credit housing in Shelby County, TN?
Under HUD's FY2026 Multifamily Tax Subsidy Project limits, the 60% limit is $38,940 for one person and $55,620 for four. Some older tax-credit properties here use higher HERA hold-harmless limits.
Is the Fair Market Rent the same as the Section 8 payment standard?
No. Housing agencies set their payment standard between 90% and 110% of the FMR (for a two-bedroom here: $1,171 to $1,431), and can ask HUD for exceptions. Check the payment standard with your local housing agency.