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Average Rent in Shelby, Tennessee
The FY2027 Fair Market Rent for a 2-bedroom home in Shelby is $1,301 a month, on HUD's gross-rent scale that includes utilities. Shelby sits in the Memphis, TN-MS-AR HUD Metro FMR Area, and its figures place it #23 among the 95 county rent listings published for Tennessee — $253 (24%) above the Tennessee county median. With a 2024 population of about 919,173, it is one of the rental markets we track in depth: below is the full bedroom-by-bedroom table, the income each size implies under the 30% rule, and how the county compares with its state and the country.
FY2027 Fair Market Rents in Shelby
| Unit size | Monthly FMR | Rent over a year | Income needed (30% rule) |
|---|---|---|---|
| Efficiency (0 BR) | $1,095 | $13,140 | $43,800 |
| 1 bedroom | $1,191 | $14,292 | $47,640 |
| 2 bedrooms | $1,301 | $15,612 | $52,040 |
| 3 bedrooms | $1,717 | $20,604 | $68,680 |
| 4 bedrooms | $1,981 | $23,772 | $79,240 |
The gaps between sizes tell you how this market prices space. In Shelby, stepping up from an efficiency to a one-bedroom adds $96 a month; stepping up from a one-bedroom to a two-bedroom adds $110 a month; and stepping up from a two-bedroom to a three-bedroom adds $416 a month. Families feel those steps directly, because voucher size standards and the 30% math both key off the bedroom count: a household approved for a 2-bedroom voucher that rents a 3-bedroom pays the difference itself unless the unit still passes the agency's rent-reasonableness test.
The 30% rule in Shelby
Housing is considered affordable when gross rent takes no more than 30% of gross household income. At the FY2027 2-bedroom FMR of $1,301, that means an income of about $52,040 a year — $15,612 of rent spread over twelve months. A 1-bedroom at $1,191 fits an income of $47,640, while a family-sized 4-bedroom at $1,981 needs $79,240. Remember that FMRs are gross rents: if a lease leaves utilities in the tenant's name, the housing agency applies a utility allowance so the combined cost is what gets compared with the payment standard. For workers, the 2-bedroom figure works out to about $25 an hour at full-time hours — a useful yardstick when weighing a job offer against local rent.
How Shelby, Tennessee compares
Against its own state, Shelby's 2-bedroom FMR sits above the statewide ACS median gross rent of $1,284, and $253 (24%) above the Tennessee county median. Against the country as a whole it is $283 above the national median area figure of $1,018. The state's priciest county listing is Cannon at $1,798 and its least expensive is Benton at $995, so Shelby sits within the Tennessee range. The full county-by-county table is on the Tennessee average rent page.
Vouchers and Fair Market Rents in Shelby
This is a metropolitan rent area. In a small number of the largest metro areas HUD also publishes Small Area FMRs by ZIP code, which housing agencies in those areas must or may use for vouchers; the figures here are the standard area-wide schedule. For Housing Choice Voucher holders, the number that matters day to day is the payment standard: the local housing agency sets it between 90% and 110% of the FMR for each unit size, and the subsidy is calculated from the lower of that standard or the actual gross rent. An FMR is not a rent control and not a quote — homes in Shelby lease both above and below these figures — but it is the benchmark every voucher lease is tested against, and a good neutral summary of where the modest end of this market sits. The same figures apply in Crittenden, DeSoto, Fayette, Tipton, which share this rent area.
Shelby rent questions
What is the Fair Market Rent for a 2-bedroom in Shelby, TN?
HUD's FY2027 Fair Market Rent for a 2-bedroom home in Shelby (Memphis, TN-MS-AR HUD Metro FMR Area) is $1,301 a month, gross rent including utilities. The efficiency figure is $1,095 and a 4-bedroom is $1,981.
What income do you need for a 2-bedroom in Shelby?
At the 30% rule, a 2-bedroom at the FY2027 FMR of $1,301 a month takes an annual income of about $52,040 — roughly $25 an hour full-time. Housing agencies may set voucher payment standards between 90% and 110% of the FMR.
How does Shelby compare with the rest of Tennessee?
Its 2-bedroom FMR of $1,301 ranks #23 among 95 county listings in Tennessee, $253 (24%) above the Tennessee county median, and sits above the statewide ACS median gross rent of $1,284.
Sources: U.S. Department of Housing and Urban Development, Fair Market Rents FY2027 (county-level data file, effective October 1, 2026), huduser.gov; U.S. Census Bureau, American Community Survey 2024 1-year estimates, table B25031 (median gross rent), census.gov. Last verified: October 2026.