Smith County, TN: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,1462-bedroom FMR, FY2027

$8761-bedroom FMR, FY2027

$68,70080% income limit, family of 4 (FY2026)

$85,900Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Smith County is $1,146 a month, up 9.0% from $1,051 in FY2026. Smith County belongs to the Smith County, TN HUD Metro FMR Area FMR area, so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Smith County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$870	$796	+9.3%	$783 – $957
1 bedroom	$876	$801	+9.4%	$789 – $963
2 bedrooms	$1,146	$1,051	+9.0%	$1,032 – $1,260
3 bedrooms	$1,407	$1,368	+2.9%	$1,267 – $1,547
4 bedrooms	$1,506	$1,392	+8.2%	$1,356 – $1,656

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Smith County that is typically $1,032 to $1,260 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

Can local renters afford the fair market rent?

$44,190median income of renter households

$922Median gross rent, all units

25%Rent-to-income ratio (median rent ÷ median renter income)

37%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $44,190 can afford about $1,105 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,146 is $41 (3.7%) more than that. To rent a two-bedroom at the FMR, a household needs $45,840 a year under the 30% rule, or $41,256 under the common landlord rule that income must be three times the rent.

Smith County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$922 ±$67
Median income of renter households	$44,190 ±$5,052
Renters paying 30% or more of income (cost-burdened)	36.9% ±7.8
Renters paying 50% or more (severely cost-burdened)	18.6% ±6.3
Renter households (where the share can be computed)	1,496

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$621	$922	+48.5%
Median renter household income	$31,444	$44,190	+40.5%
Renters paying 30%+ of income	31.5%	36.9%	+5.4 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

Small Area FMRs by ZIP code (FY2027)

In metro areas HUD also publishes ZIP-level Small Area Fair Market Rents. Housing authorities in designated areas must use them for voucher payment standards; others may opt in. Here the two-bedroom SAFMR ranges from $1,000 to $1,700 depending on the ZIP code.

All 15 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
37012	$1,040	$1,060	$1,190	$1,500	$1,820
37030	$900	$910	$1,190	$1,460	$1,560
37057	$1,120	$1,150	$1,310	$1,680	$1,960
37087	$1,230	$1,280	$1,400	$1,800	$2,170
37090	$1,500	$1,560	$1,700	$2,180	$2,640
37145	$770	$800	$1,000	$1,240	$1,360
37151	$990	$1,020	$1,220	$1,540	$1,740
37184	$1,040	$1,060	$1,190	$1,500	$1,820
38547	$830	$840	$1,060	$1,320	$1,510
38548	$750	$810	$1,030	$1,360	$1,440
38552	$870	$880	$1,150	$1,410	$1,510
38560	$760	$760	$1,000	$1,240	$1,310
38563	$780	$790	$1,030	$1,260	$1,350
38567	$780	$780	$1,020	$1,260	$1,450
38569	$780	$820	$1,020	$1,330	$1,600

Source: HUD FY2027 Small Area FMRs (effective October 1, 2026).

HUD income limits for Smith County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $85,900 (FY2025: $85,200, +0.8%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$18,050 +3.1%	$21,640 +2.3%	$27,320 +2.5%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$30,100 +3.3%	$34,400 +3.3%	$38,700 +3.3%	$42,950 +3.2%	$46,400 +3.3%	$49,850 +3.3%	$53,300 +3.3%	$56,700 +3.3%
Low income (80%)	$48,100 +3.2%	$55,000 +3.3%	$61,850 +3.3%	$68,700 +3.2%	$74,200 +3.2%	$79,700 +3.2%	$85,200 +3.2%	$90,700 +3.2%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.