Tennessee Section 8 Markets and Voucher Rents
Tennessee is a strong Southern Section 8 state: Memphis grades A for voucher rents that routinely beat market, with Chattanooga and Knoxville close behind at B. The statewide median 3-bed voucher sits near $1,620/mo, and the no-income-tax state keeps carrying costs unusually light.
The honest note is that the catch here is small. Property tax runs about 0.6% and insurance about 0.7%, so the drag is among the lowest in our coverage; the real work is picking management and the right block, especially in Memphis. Screen any Tennessee address free on CloseHound to lock down cash-on-cash.
Section 8 markets in Tennessee, best cash flow first
Voucher figures are HUD SAFMR 3-bedroom medians (FY2026) across each market's screened ZIP codes. Open a market for the full ZIP-level table.
Tennessee Section 8 FAQ
Is Tennessee a good Section 8 market for cash flow?+
Yes. Memphis grades A, meaning voucher rents routinely beat market for strong cash-on-cash, while Chattanooga and Knoxville grade B and cash-flow with the right property.
What's the Section 8 voucher rent for a 3-bed in Tennessee?+
The statewide median 3-bedroom voucher across Memphis, Chattanooga, and Knoxville is about $1,620/mo for FY2026, from HUD payment standards. Each market carries its own ZIP-level range.
What's the property-tax and insurance drag in Tennessee?+
Both are low: property tax averages roughly 0.6% of value and insurance about 0.7%. That light carrying cost is a big reason Tennessee net yields hold up well.
How do I find cash-flowing Section 8 deals in Tennessee?+
Start in A-grade Memphis, then compare Chattanooga and Knoxville listings, running each address through CloseHound free. The screen weighs the HUD voucher against price and the low ~0.6% tax to confirm yield.
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