Photograph — sunflower field at sunset — © Jonathan Ross Photography, used with permission.
Madison County is the hub of West Tennessee — Jackson sits on I-40 between Memphis and Nashville and anchors its own four-county metropolitan statistical area. For lending purposes that means the numbers here are the national baseline figures, not the Nashville-metro ones: the FHA floor, the standard conforming limit, and THDA income caps set for the Jackson area. This page lays out what actually applies here — loan limits, USDA eligibility (which covers most of the county but not the city of Jackson), the county-plus-city tax stack, and THDA limits with the targeted-tract detail that matters for repeat buyers.
Valor Mortgage is an independent broker based in Springfield, Tennessee, licensed to originate across the whole state. Christopher Armantrout (NMLS #1210804) has financed Tennessee homes since 2015; Madison County files run by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose.
Christopher Armantrout — Valor Mortgage
615.671.9178 | christopher@valor.mortgage
724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm
2026 Loan Limits in Madison County
Madison County is in the Jackson, TN metropolitan statistical area with Chester, Crockett and Gibson counties. HUD sets FHA limits from local median prices, and the Jackson-area median is low enough that the county sits at the floor that applies to every low-cost county in the country.
| Program | Madison County 2026 | Nashville-metro counties | Notes |
|---|---|---|---|
| FHA | $541,287 | $1,029,250 | National FHA floor |
| Conventional / conforming | $832,750 | $1,029,250 | National baseline |
| VA | No limit | No limit | Entitlement governs |
| USDA | No stated limit | No stated limit | Income and area tests instead |
FHA and conforming figures: HUD FHA Mortgage Limits lookup, Madison County TN, limit year CY2026, last revised 1 January 2026. Retrieved 11 September 2026. HUD records a median sale price of $209,000 for the Jackson TN MSA against $895,000 for the Nashville MSA.
Why the floor is good news here
$541,287 is not a Jackson-specific calculation — it is the minimum FHA limit nationwide, and Madison County does not clear the threshold to go above it. In practice that is rarely a constraint: with an area median of $209,000, an FHA limit of $541,287 covers nearly every home a first-time buyer here will look at.
The same is true of the $832,750 conforming limit. Jumbo financing, a live issue in the Nashville counties, rarely comes up in Madison County. The questions that do come up are down payment, mortgage insurance and which program is cheapest — and those are decided by your file, not by a ceiling.
Multi-unit limits for Madison County in 2026 — FHA: $693,050 duplex, $837,700 triplex, $1,041,125 fourplex. Conforming: $1,066,250, $1,288,800 and $1,601,750. The same limits apply in Chester, Crockett and Gibson counties, and in non-metro Haywood and Henderson.
USDA Eligibility in Madison County
USDA Rural Development financing offers no down payment for qualified buyers, and unlike VA it is not limited to veterans — but the property has to sit inside an eligible area. In Madison County that test is unusually clear: about 86% of the county’s land area is eligible, and the ineligible 14% is essentially the city of Jackson.
| City / area | USDA eligible? | What the map shows |
|---|---|---|
| Jackson | Effectively no | About 99% of the city’s 59.4 sq mi sits inside the ineligible area. Treat a Jackson address as a USDA no unless it is on the outermost fringe. |
| Three Way | Yes | All 4.5 sq mi of the city is outside the ineligible area — a city address on Jackson’s north side that still qualifies for zero-down financing. |
| Medon | Yes | Entirely eligible. |
| Unincorporated county | Yes | The rural county outside Jackson qualifies throughout. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer, boundary effective 25 July 2023), grid-sampled against U.S. Census Bureau TIGERweb county and place boundaries. Computed 11 September 2026; the sampling inputs and results are retained and available on request.
The boundary does not follow the city limit
USDA eligibility is not the same thing as the Jackson city line, and it has no relationship to zip codes. A small number of addresses inside the city limits sit outside the ineligible area, and the boundary runs through the developing edges of the city — including the north side, where Jackson, Three Way and the county meet.
Because of that, the percentages above cannot tell you about a specific house. Eligibility has to be confirmed by street address before you write an offer. Have Christopher check yours →
USDA income limits in the Jackson area
USDA caps household income by area and household size on top of the geographic test. For the Guaranteed program the current cap in Madison County is $122,800 for a household of one to four people and $162,100 for five to eight. Both tests have to pass, so ask us to run your household against the current published limit before you commit to the program.
Source: USDA Rural Development Income Eligibility calculator, Madison County TN, Section 502 Guaranteed limits in effect 11 September 2026.
Property Taxes in Madison County
Tennessee assesses residential property at 25% of appraised value. Madison County levies $1.8736 per $100 of assessed value; Jackson adds $1.6114, Three Way adds $0.4159, and the Madison County portion of Humboldt carries that city’s $1.8750. Medon levies no city property tax.
Worked example — a $250,000 home
Assessed at $62,500. In the unincorporated county: $62,500 ÷ 100 × 1.8736 = $1,171.00 a year, $97.58 a month.
Inside Jackson: $3.4850 combined = $2,178.12 a year, $181.51 a month. That is $1,007.12 a year, or $83.93 a month, for the city line. Three Way sits in between at $1,430.94 a year.
Note that the Jackson city line is also, very nearly, the USDA line. Outside it you may get both the lower tax bill and the zero-down option. Run your own: (purchase price × 0.25) ÷ 100 × combined rate = annual tax
| Jurisdiction | City rate | County rate | Combined | Tax on a $250,000 home |
|---|---|---|---|---|
| Unincorporated county | — | $1.8736 | $1.8736 | $1,171.00 / yr · $97.58 / mo |
| Jackson | 1.6114 | $1.8736 | $3.4850 | $2,178.12 / yr · $181.51 / mo |
| Three Way | 0.4159 | $1.8736 | $2.2895 | $1,430.94 / yr · $119.24 / mo |
| Humboldt (Madison County portion) | 1.8750 | $1.8736 | $3.7486 | $2,342.88 / yr · $195.24 / mo |
Rates per $100 of assessed value. Source: Tennessee Comptroller of the Treasury, Property Tax Rates, tax year 2025 — the most recent year the state has published. Retrieved 11 September 2026. Rates reset after reappraisal cycles; confirm with the Madison County Trustee and your city before relying on them for a closing figure.
Tennessee has no state income tax, which is part of why a payment that looks tight on paper often works here once real take-home pay is documented.
Down Payment Assistance for Madison County Buyers
THDA sets assistance limits by county. Madison’s income caps are set for the Jackson area and are lower than the Nashville-metro counties — and, unusually, lower than four of the counties that border it.
| THDA limit | Madison County | Gibson / Crockett / Haywood / Henderson | Nashville-metro counties |
|---|---|---|---|
| Acquisition cost limit | $500,000 | $500,000 | $500,000 |
| Income limit — 1–2 persons | $95,400 | $113,880 | $139,320 |
| Income limit — 3 or more persons | $111,300 | $132,860 | $162,540 |
Source: THDA Acquisition Cost & Income Limits by County, Great Choice and HFA Advantage mortgage loan programs, effective 1 August 2026. Retrieved 11 September 2026.
Madison has targeted census tracts; its neighbours are targeted countywide
THDA flags Madison County as containing targeted census tracts, where the first-time homebuyer requirement is waived — decided by the specific property address, so a repeat buyer in the right part of Jackson can still use Great Choice.
Gibson, Crockett, Haywood and Henderson counties are targeted in their entirety, which waives the first-time requirement everywhere and raises the income caps to $113,880 and $132,860. If your household is between the two sets of limits, the county line is a real variable in your search.
THDA’s Homeownership for the Brave track offers a reduced rate for military, veterans, reservists, National Guard and surviving spouses. For eligible buyers we compare it side by side with a VA loan, which has no loan limit and no monthly mortgage insurance — in a market where the FHA floor already covers nearly every home, the VA advantage here is the zero down payment and the monthly cost, not the ceiling.
Rural Property Underwriting Outside Jackson
The eligible, lower-taxed part of Madison County is also the part with well water, septic systems and acreage — row-crop and timber land is common on the county’s edges. These issues are real and they kill closings late when nobody raises them early.
Well and septic
USDA and FHA both require inspections and water quality testing, with specific distance requirements between well and septic components. Schedule the testing early rather than in the final week.
Acreage and outbuildings
Value attributable to barns, shops and excess acreage may not count toward the loan. A property with significant land does not appraise like the comparable sales you found online, and the gap comes out of your down payment. Tell us about the acreage before you are under contract.
Manufactured housing
Manufactured homes are common in West Tennessee and carry their own rules: permanent foundation, HUD tags intact, age restrictions that vary by program. Which programs work is knowable before you tour.
Private roads and shared easements
Several loan products require a recorded road maintenance agreement where access is shared or unmaintained. Creating one means getting neighbours to sign, which takes longer than your contract timeline allows if you find out in week three.
What a Madison County Purchase Actually Costs
We are not quoting an interest rate on a web page. Everything around the rate, though, is knowable now.
| Cost component | What to expect in Madison County |
|---|---|
| Down payment | USDA 0% · VA 0% · FHA 3.5% · conventional 3–5% for many first-time buyers. Which of these you can use is decided partly by the address, per the USDA section above. |
| Property tax | $97.58 to $181.51 a month on a $250,000 home depending on where the property sits. Use the stacking table above for your specific jurisdiction. |
| Homeowners insurance | West Tennessee carries real wind, hail and tornado exposure and carriers have tightened deductibles on it. Get a real quote early — do not let anyone plug in a placeholder. |
| Mortgage insurance | Handled differently by every program: USDA has an upfront guarantee fee plus an annual fee, FHA has upfront and annual MIP, VA has a one-time funding fee with exemptions, conventional uses PMI that comes off with equity. This line alone can flip which program is cheapest for you. |
| Closing costs | Tennessee recordation and transfer taxes, title work, appraisal, and prepaid escrows. |
Find Out What Your Address Qualifies For
USDA eligibility on the edges of Jackson, the city tax difference, THDA targeted-tract status and which program is cheapest for your file — checked for your specific property. Christopher will review it personally.
Neighbouring Counties
Chester, Crockett and Gibson share the Jackson MSA and carry the same $541,287 FHA and $832,750 conforming limits; Haywood and Henderson are non-metro counties with identical limits. THDA treats Gibson, Crockett, Haywood and Henderson as targeted countywide, with higher income caps than Madison.
Frequently Asked Questions — Madison County Homebuyers
What is the FHA loan limit in Madison County, TN for 2026?
$541,287 for a one-unit property — the national FHA floor. Madison County is the core of the Jackson, TN metropolitan statistical area, where HUD records a median sale price of $209,000, so the county does not clear the threshold for a higher limit. The 2026 conforming limit is $832,750, the national baseline. VA loans have no limit with full entitlement.
Is Madison County eligible for a USDA loan?
Mostly, yes. Roughly 86% of Madison County’s land area is USDA-eligible; the ineligible area is essentially the city of Jackson, where about 99% of the city’s 59.4 square miles is excluded. Three Way and Medon are entirely inside the eligible area, as is the unincorporated county. Eligibility is set by street address, so it has to be confirmed on the specific property.
What is the property tax rate in Madison County, Tennessee?
The county rate is $1.8736 per $100 of assessed value and Tennessee assesses homes at 25% of appraised value. Inside Jackson the city adds $1.6114 for a combined $3.4850; Three Way adds $0.4159. On a $250,000 home that is $1,171.00 a year in the unincorporated county and $2,178.12 inside Jackson. Rates shown are the Tennessee Comptroller’s published 2025 figures.
What are the THDA income limits for Madison County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Madison County are $95,400 for a one or two person household and $111,300 for three or more, with a $500,000 acquisition cost limit. Madison contains targeted census tracts where the first-time homebuyer requirement is waived. Four neighbouring counties — Gibson, Crockett, Haywood and Henderson — are targeted countywide and carry higher limits of $113,880 and $132,860.
Does Valor Mortgage work with buyers in Jackson, TN?
Yes. Valor Mortgage is licensed to originate residential mortgages anywhere in Tennessee. The office is in Springfield, in Middle Tennessee, and Madison County files are handled the way most of our files are — by phone, text and a secure online application, with closing at a local title company — the one you or your agent choose.
Where These Numbers Come From
Every figure on this page is taken from the agency that publishes it, not from an aggregator. Here is the audit trail.
| Figure | Source | As of |
|---|---|---|
| FHA and conforming limits | HUD FHA Mortgage Limits, Madison County TN, CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries, grid-sampled against Census TIGERweb boundaries | Boundary eff. 25 Jul 2023; computed 11 September 2026 |
| USDA income limits | USDA Rural Development Income Eligibility calculator, Madison County | 11 September 2026 |
| County and city tax rates | Tennessee Comptroller of the Treasury, Property Tax Rates | Tax year 2025 |
| Assessment ratio (25%) | Tennessee Code Ann. § 67-5-801 | Current statute |
| THDA limits | THDA Acquisition Cost & Income Limits by County | Effective 1 Aug 2026 |
| VA — no loan limit | Blue Water Navy Vietnam Veterans Act of 2019 | Eff. 1 Jan 2020 |
Last updated: 11 September 2026. Loan limits are reset each November for the following calendar year. THDA and USDA limits change periodically. Tennessee property tax rates change after reappraisal cycles. We re-check every figure on this page on that schedule.
Valor Mortgage — Locally Owned, Tennessee Licensed
Christopher Armantrout | 724 S Main St, Springfield, TN 37172
Christopher Armantrout NMLS #1210804 | Encore Lending Group, LLC NMLS #1249911 | Equal Housing Lender | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
All figures on this page are estimates for general information and are not an offer or a commitment to lend. Loan limits, program limits, tax rates and USDA eligibility boundaries are set by the agencies named above and change without notice; every figure must be verified for your specific property and household before you rely on it. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Programs subject to change without notice.
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