HUD Fair Market Rent · FY 2027 · Effective Oct 1, 2026 to Sep 30, 2027
Fair Market Rent in Shelby County, Tennessee (FY 2027)
HUD's FY 2027 Fair Market Rent for a two-bedroom in Shelby County is $1,301 a month. That's the number the housing authority starts from when it sets Section 8 payment standards here.
Two-bedroom FMR
$1,301
+2.1% from FY 2026
Payment standard
$1,171–$1,431
90% to 110% of the FMR, two-bedroom
Income to afford
$52,040
a year, with rent at 30% of income
Rank in Tennessee
24th of 95
by two-bedroom FMR, highest first
FY 2027 Fair Market Rents
Payment standard is the 90% to 110% band a housing authority can set. Income needed puts rent at 30% of gross income, and the hourly wage assumes a 40-hour week.
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs FY 2026 |
|---|---|---|---|---|---|
| Studio | $1,095 | $986–$1,205 | $43,800 | $21.06/hr | +3.3% |
| 1 bedroom | $1,191 | $1,072–$1,310 | $47,640 | $22.90/hr | +3.2% |
| 2 bedroom | $1,301 | $1,171–$1,431 | $52,040 | $25.02/hr | +2.1% |
| 3 bedroom | $1,717 | $1,545–$1,889 | $68,680 | $33.02/hr | +2.0% |
| 4 bedroom | $1,981 | $1,783–$2,179 | $79,240 | $38.10/hr | +1.1% |
Five to eight bedrooms (PropMetrics estimates)
HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.
| Bedrooms | Estimated FMR | Payment standard |
|---|---|---|
| 5 bedroom Estimate | $2,278 | $2,050–$2,506 |
| 6 bedroom Estimate | $2,575 | $2,318–$2,833 |
| 7 bedroom Estimate | $2,872 | $2,585–$3,159 |
| 8 bedroom Estimate | $3,170 | $2,853–$3,487 |
Source: HUD Office of Policy Development and Research, FY 2027 Fair Market Rents. Rents include utilities. huduser.gov
Market check
Two-bedrooms in Memphis are asking $1,009. HUD says $1,301.
That's 22% below the county FMR. Median asking rent across 19 Memphis ZIP codes with active 2BR listings. FMR includes utilities and asking rents usually don't, so the true gap is a little smaller.
No card needed
What a voucher pays here
The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Shelby somewhere between $1,171 and $1,431. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.
$1,301 a month is affordable, by HUD's 30% rule, on an income of roughly $52,040 a year. Put another way, $25 an hour full time.
Worked example for a two-bedroom renting at the payment standard. The tenant pays 30% of monthly income and the voucher covers the rest.
| Monthly household income | Tenant pays (30%) | Voucher pays at 90%$1,171 | Voucher pays at 100%$1,301 | Voucher pays at 110%$1,431 |
|---|---|---|---|---|
| $2,500 | $750 | $421 | $551 | $681 |
| $4,000 | $1,200 | $0 | $101 | $231 |
Rate history
The two-bedroom rate went up 2% from FY 2026 ($1,274) to FY 2027 ($1,301). Since FY 2020 it's up 47% in total, about 5.7% a year. The Tennessee median moved up 7% over the same year.
| Fiscal year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR change |
|---|---|---|---|---|---|---|
| FY 2020 | $665 | $755 | $884 | $1,203 | $1,374 | — |
| FY 2021 | $686 | $784 | $911 | $1,228 | $1,412 | +3.1% |
| FY 2022 | $694 | $792 | $912 | $1,219 | $1,404 | +0.1% |
| FY 2023 | $800 | $902 | $1,032 | $1,365 | $1,584 | +13.2% |
| FY 2024 | $1,031 | $1,146 | $1,298 | $1,711 | $1,995 | +25.8% |
| FY 2025 | $1,105 | $1,207 | $1,355 | $1,781 | $2,086 | +4.4% |
| FY 2026 | $1,060 | $1,154 | $1,274 | $1,683 | $1,959 | -6.0% |
| FY 2027In effect | $1,095 | $1,191 | $1,301 | $1,717 | $1,981 | +2.1% |
About this rate
Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2027 that's October 1, 2026 through September 30, 2027. In Shelby, that runs from $1,095 for a studio up to $1,981 for four bedrooms, all five rates in the table above.
This is a metro rate. The county doesn't get one of its own. HUD lumps Shelby in with 4 other counties in the Memphis metro, DeSoto County, Tipton County, Crittenden County among them, and every one of them gets $1,301 for a two-bedroom. Where you are inside the metro doesn't change the county number. It does change the ZIP number, covered below.
Among Tennessee's 95 counties, Shelby ranks 24th for two-bedroom FMR. That's about 24% above the state median of $1,048 and about 22% above the national median county at $1,063. About 919,173 people live here, 1st in the state.
Rates by ZIP code
Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $1,000 in 38126 (Memphis) and $1,950 in 38139 (Germantown), with the 63 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.
| ZIP | City | 2BR rate | vs county |
|---|---|---|---|
| 37501 | Memphis | $1,301County rate | — |
| 37544 | Memphis | $1,301County rate | — |
| 38002 | Arlington | $1,860 | +43.0% |
| 38014 | Brunswick | $1,301County rate | — |
| 38016 | Cordova | $1,600 | +23.0% |
| 38017 | Collierville | $1,660 | +27.6% |
| 38018 | Cordova | $1,780 | +36.8% |
| 38027 | Collierville | $1,300 | -0.1% |
| 38028 | Eads | $1,410 | +8.4% |
| 38029 | Ellendale | $1,670 | +28.4% |
| 38053 | Millington | $1,250 | -3.9% |
| 38054 | Millington | $1,250 | -3.9% |
| 38055 | Millington | $1,300 | -0.1% |
| 38083 | Millington | $1,300 | -0.1% |
| 38088 | Cordova | $1,300 | -0.1% |
| 38101 | Memphis | $1,300 | -0.1% |
| 38103 | Memphis | $1,750 | +34.5% |
| 38104 | Memphis | $1,450 | +11.5% |
| 38105 | Memphis | $1,090 | -16.2% |
| 38106 | Memphis | $1,080 | -17.0% |
| 38107 | Memphis | $1,120 | -13.9% |
| 38108 | Memphis | $1,010 | -22.4% |
| 38109 | Memphis | $1,080 | -17.0% |
| 38111 | Memphis | $1,240 | -4.7% |
| 38112 | Memphis | $1,050 | -19.3% |
| 38113 | Memphis | $1,300 | -0.1% |
| 38114 | Memphis | $1,070 | -17.8% |
| 38115 | Memphis | $1,360 | +4.5% |
| 38116 | Memphis | $1,250 | -3.9% |
| 38117 | Memphis | $1,510 | +16.1% |
| 38118 | Memphis | $1,250 | -3.9% |
| 38119 | Memphis | $1,460 | +12.2% |
| 38120 | Memphis | $1,680 | +29.1% |
| 38122 | Memphis | $1,240 | -4.7% |
| 38124 | Memphis | $1,300 | -0.1% |
| 38125 | Memphis | $1,590 | +22.2% |
| 38126 | Memphis | $1,000 | -23.1% |
| 38127 | Memphis | $1,180 | -9.3% |
| 38128 | Memphis | $1,350 | +3.8% |
| 38130 | Memphis | $1,300 | -0.1% |
Counties sharing the Memphis metro rate
HUD sets one rate for the whole metro, so every county here carries the same $1,301 two-bedroom figure as Shelby.
Nearby counties
Two-bedroom FMR, with how each compares to Shelby.
Tipton County
23 mi · 61,553 people
$1,301
same rate
Fayette County
29 mi · 43,267 people
$1,301
same rate
Haywood County
44 mi · 17,475 people
$995
-24%
Lauderdale County
48 mi · 24,784 people
$995
-24%
Hardeman County
54 mi · 25,433 people
$995
-24%
Crockett County
63 mi · 13,944 people
$1,093
-16%
Madison County
69 mi · 99,295 people
$1,375
+6%
Dyer County
70 mi · 36,508 people
$995
-24%
Questions people ask
$1,301 a month for FY 2027, which runs October 1, 2026 through September 30, 2027. The other rates are $1,095 for a studio, $1,191 for one bedroom, $1,717 for three and $1,981 for four.
Tools for this county
Fair Market Rent lookup
Any ZIP code's Small Area FMR by bedroom count
Section 8 rent calculator
Payment standard and tenant share for a specific rent
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords
Rent affordability calculator
The income a household needs for a given rent
What does a rental in Shelby actually go for?
HUD's number is one input. Search any address in Shelby for a rent estimate built from nearby comps. Free to start, no card.
Free tier. No credit card.