Is Memphis a Good Section 8 Market for Cash Flow?
Memphis, in Shelby County, is an A-grade Section 8 market on CloseHound, meaning voucher rent routinely beats the open market and the math supports real cash-on-cash before financing. The median 3-bedroom voucher pays $1,595/mo, and 0.6% property tax plus 0.7% insurance keep the carrying costs light across the city's 10 screened ZIP codes.
The honest catch is that an A grade rewards execution, not autopilot. Memphis is a classic ~9% cash-on-cash voucher market with low taxes, but property management makes or breaks it here, so pick your operator carefully. Screen any Memphis address free on CloseHound to see where it lands against the $160,000 supported price.
Memphis HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 38106 | $1,150/mo | $1,520/mo | $1,770/mo |
| 38108 | $1,060/mo | $1,390/mo | $1,620/mo |
| 38109 | $1,080/mo | $1,430/mo | $1,660/mo |
| 38111 | $1,240/mo | $1,640/mo | $1,910/mo |
| 38114 | $1,090/mo | $1,440/mo | $1,680/mo |
| 38115 | $1,360/mo | $1,800/mo | $2,090/mo |
| 38116 | $1,250/mo | $1,650/mo | $1,920/mo |
| 38118 | $1,230/mo | $1,620/mo | $1,890/mo |
| 38127 | $1,190/mo | $1,570/mo | $1,830/mo |
| 38128 | $1,350/mo | $1,780/mo | $2,080/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
Classic ~9% cash-on-cash Section 8 market. Low taxes; pick management carefully.
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Memphis Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Memphis?+
The median 3-bedroom voucher in Memphis pays about $1,595/mo on FY2026 numbers, with the screened range running from $1,390 to $1,800 depending on the ZIP.
Is Memphis a good Section 8 market?+
Yes. CloseHound grades Memphis an A, its top tier, because voucher rent routinely beats market and supports strong cash-on-cash. It's a classic ~9% cash-on-cash market with low taxes.
What's the property-tax and insurance drag in Memphis?+
Memphis carries roughly 0.6% effective property tax and about 0.7% insurance, both low. The bigger variable here is management quality, not the line-item costs.
How do I find cash-flowing Section 8 deals in Memphis?+
Run the address through CloseHound's free screener. It checks the property price against the local 3-bed voucher rent (around $1,595/mo) and a $160,000 1%-rule supported price to flag whether it cash-flows.
Screen Memphis deals free
See which Memphis listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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