Photograph — farm with silo and barns at sunset — © Jonathan Ross Photography, used with permission.
Shelby County is the southwest corner of Tennessee and its most populous county — Memphis sits on the Mississippi River with Mississippi directly to the south and Arkansas across the river. For lending purposes 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 Memphis area. This page lays out what actually applies — loan limits, USDA eligibility (which skips Memphis and its inner suburbs but reaches Millington and Arlington), a property tax stack where the city line adds thousands a year, 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; Shelby 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. For how we work with Memphis buyers specifically, see our Memphis mortgage broker page.
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 Shelby County
Shelby County is the core of HUD’s Memphis, TN-MS-AR metropolitan area, which also takes in Tipton and Fayette counties in Tennessee plus counties in north Mississippi and eastern Arkansas. HUD sets FHA limits from local median prices, and the Memphis-area median is low enough that the county sits at the floor that applies to every lower-cost county in the country.
| Program | Shelby 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, Shelby County TN, limit year CY2026, last revised 1 January 2026. Retrieved 9 October 2026. HUD records a median sale price of $339,000 for the Memphis TN-MS-AR MSA against $895,000 for the Nashville MSA.
Where the floor starts to bind
$541,287 is not a Memphis-specific calculation — it is the minimum FHA limit nationwide, and Shelby County does not clear the threshold to go above it. With an area median of $339,000 it covers most of what first-time buyers here look at.
In Germantown, Collierville and parts of East Memphis, though, prices can run past $541,287 for FHA and past $832,750 for conventional. Above those lines the choice is a larger down payment, a jumbo loan, or VA with full entitlement, which has no limit at all.
Multi-unit limits for Shelby 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 Tipton and Fayette counties.
USDA Eligibility in Shelby 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 Shelby County about 38% of the land area is eligible, and almost all of it is on the county’s northern and eastern edges.
| City / area | USDA eligible? | What the map shows |
|---|---|---|
| Memphis | No | All 290 sq mi of the city sits inside the ineligible area. |
| Germantown, Bartlett | No | Entirely inside the ineligible area. |
| Collierville | Effectively no | About 99% of the city is ineligible; treat a Collierville address as a USDA no unless it is on the outermost fringe. |
| Lakeland | Split | About 58% of the city is eligible and the rest is not, so the line runs through the city itself. Check the specific address. |
| Arlington | Yes | Essentially all 24 sq mi eligible — the closest fully eligible city to Memphis on the east side. |
| Millington | Yes | All 22 sq mi eligible, which matters for buyers connected to Naval Support Activity Mid-South. |
| Unincorporated county | North: mostly | About 90% of the unincorporated land in the northern half of the county is eligible; in the southern half only about a third is. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer), grid-sampled against U.S. Census Bureau TIGERweb county and place boundaries. Computed 9 October 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 a city line, and it has no relationship to zip codes. A Collierville, Lakeland or Arlington mailing address can cover ground on either side of the line, and the boundary moves through the growing edges of the county where new subdivisions are going in.
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 Memphis area
USDA caps household income by area and household size on top of the geographic test. For the Guaranteed program the current cap in Shelby 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, Shelby County TN, Section 502 Guaranteed limits in effect 9 October 2026.
Property Taxes in Shelby County
Tennessee assesses residential property at 25% of appraised value. Shelby County levies $2.6900 per $100 of assessed value everywhere in the county, and each of its seven cities adds its own rate on top — from $0.9400 in Lakeland to $2.58081 in Memphis.
Worked example — a $300,000 home
Assessed at $75,000. In the unincorporated county: $75,000 ÷ 100 × 2.6900 = $2,017.50 a year, $168.12 a month.
Inside Memphis: $5.27081 combined = $3,953.11 a year, $329.43 a month. That is $1,935.61 a year, or $161.30 a month, for the city line alone. Germantown, at the top of the suburban range, is $3,360.00 a year.
Property tax is a large share of a Memphis payment, so it belongs in the budget before you pick a price range, not after. Run your own: (purchase price × 0.25) ÷ 100 × combined rate = annual tax
| Jurisdiction | City rate | County rate | Combined | Tax on a $300,000 home |
|---|---|---|---|---|
| Unincorporated county | — | $2.6900 | $2.6900 | $2,017.50 / yr · $168.12 / mo |
| Memphis | 2.58081 | $2.6900 | $5.27081 | $3,953.11 / yr · $329.43 / mo |
| Arlington | 1.1300 | $2.6900 | $3.8200 | $2,865.00 / yr · $238.75 / mo |
| Bartlett | 1.6600 | $2.6900 | $4.3500 | $3,262.50 / yr · $271.87 / mo |
| Collierville | 1.6200 | $2.6900 | $4.3100 | $3,232.50 / yr · $269.38 / mo |
| Germantown | 1.7900 | $2.6900 | $4.4800 | $3,360.00 / yr · $280.00 / mo |
| Lakeland | 0.9400 | $2.6900 | $3.6300 | $2,722.50 / yr · $226.88 / mo |
| Millington | 1.2000 | $2.6900 | $3.8900 | $2,917.50 / yr · $243.12 / 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. The county rate fell from $3.3900 in tax year 2024 to $2.6900 in 2025, and Memphis’s from $3.1954 to $2.58081, so older listings and estimates may overstate the tax. Retrieved 9 October 2026. Confirm with the Shelby 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 — and part of the comparison for buyers also looking across the Mississippi line, where wages are taxed.
Down Payment Assistance for Shelby County Buyers
THDA sets assistance limits by county. Shelby’s income caps are set for the Memphis area and are lower than the Nashville-metro counties — and lower than Tipton and Fayette, the two Tennessee counties that border it.
| THDA limit | Shelby County | Tipton / Fayette | Nashville-metro counties |
|---|---|---|---|
| Acquisition cost limit | $500,000 | $500,000 | $500,000 |
| Income limit — 1–2 persons | $102,794 | $113,880 | $139,320 |
| Income limit — 3 or more persons | $118,214 | $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 9 October 2026.
Shelby has targeted census tracts; Tipton and Fayette are targeted countywide
THDA flags Shelby 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 Memphis can still use Great Choice.
Tipton and Fayette counties are targeted in their entirety, which waives the first-time requirement everywhere and raises the income caps to $113,880 and $132,860. Both are also largely USDA-eligible — Atoka, Munford, Gallaway and Piperton sit entirely outside the ineligible area — so for some households the county line changes three things at once.
THDA’s Homeownership for the Brave track offers a reduced rate for military, veterans, reservists, National Guard and surviving spouses. For eligible buyers — including those connected to Naval Support Activity Mid-South in Millington — we compare it side by side with a VA loan, which has no loan limit and no monthly mortgage insurance, and which, unlike USDA, works at a Memphis address.
Older Homes, Flood Zones and Investor Properties
Shelby County’s housing stock is older than most of Tennessee’s and its rental market is one of the largest in the region. Each brings issues that kill closings late when nobody raises them early.
Pre-1978 homes and peeling paint
Much of Memphis was built before 1978. FHA and VA both require chipping or peeling paint on homes of that age to be corrected before closing, and the appraiser will call it out. Agree with the seller early on who fixes it and when, or the repair becomes a last-week scramble.
Flood zones along the rivers and creeks
The Wolf River, the Loosahatchie, Nonconnah Creek and the Mississippi bottoms all carry FEMA special flood hazard areas. A home inside one needs flood insurance for any federally backed mortgage, and the premium can change which price range works. Check the flood map for the address and get a real flood quote before you are under contract.
Earthquake coverage
Shelby County sits near the New Madrid Seismic Zone. Standard homeowners policies exclude earthquake damage and lenders generally do not require a separate earthquake policy, but it is a cost decision worth making on purpose rather than discovering later.
Investment and rental property
Memphis draws investors from across the country. For rentals, a DSCR loan qualifies on the property’s rent rather than your personal income, and two-to-four unit owner-occupied purchases can use FHA at the multi-unit limits above. For owner-occupied loans, the occupancy rules are real: FHA, VA and USDA all require you to live in the home.
What a Shelby 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 Shelby County |
|---|---|
| Down payment | USDA 0% (outside Memphis and its inner suburbs) · 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 | $168.12 to $329.43 a month on a $300,000 home depending on where the property sits. Use the table above for your specific city. |
| Homeowners and flood insurance | West Tennessee carries real wind, hail and tornado exposure, and homes near the rivers and creeks may need flood insurance as well. Get real quotes 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. |
The Mississippi and Arkansas lines run through the metro
Southaven, Olive Branch and Horn Lake in DeSoto County, Mississippi, and West Memphis, Arkansas, are part of the Memphis housing market, and many buyers search both sides of the line. Valor Mortgage is licensed in Tennessee only, so we can finance the Tennessee side — but not a Mississippi or Arkansas address. Both states tax wages where Tennessee does not, which belongs in any side-by-side comparison.
Find Out What Your Address Qualifies For
USDA eligibility on the edges of the county, the city tax difference, flood-zone status, THDA targeted-tract status and which program is cheapest for your file — checked for your specific property. Christopher will review it personally.
Neighbouring Counties
Tipton and Fayette share the Memphis metro area and carry the same $541,287 FHA and $832,750 conforming limits. THDA treats both as targeted countywide, with higher income caps than Shelby, and both are largely USDA-eligible. Madison County, an hour east on I-40, anchors the Jackson area.
Frequently Asked Questions — Shelby County Homebuyers
What is the FHA loan limit in Shelby County, TN for 2026?
$541,287 for a one-unit property — the national FHA floor. Shelby County is the core of HUD’s Memphis, TN-MS-AR metropolitan area, where HUD records a median sale price of $339,000, 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 Shelby County eligible for a USDA loan?
Only on its edges. About 38% of Shelby County’s land area is USDA-eligible. Memphis, Germantown and Bartlett are entirely ineligible and Collierville almost entirely so, but Millington and Arlington are eligible and Lakeland is split. Eligibility is set by street address, so it has to be confirmed on the specific property.
What is the property tax rate in Shelby County, Tennessee?
The county rate is $2.6900 per $100 of assessed value and Tennessee assesses homes at 25% of appraised value. Inside Memphis the city adds $2.58081 for a combined $5.27081. On a $300,000 home that is $2,017.50 a year in the unincorporated county and $3,953.11 inside Memphis. Rates shown are the Tennessee Comptroller’s published 2025 figures.
What are the THDA income limits for Shelby County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Shelby County are $102,794 for a one or two person household and $118,214 for three or more, with a $500,000 acquisition cost limit. Shelby contains targeted census tracts where the first-time homebuyer requirement is waived. Tipton and Fayette counties are targeted countywide and carry higher limits of $113,880 and $132,860.
Does Valor Mortgage work with buyers in Memphis?
Yes. Valor Mortgage is licensed to originate residential mortgages anywhere in Tennessee, and Shelby 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. We are licensed in Tennessee only, so homes on the Mississippi or Arkansas side of the metro, such as Southaven, Olive Branch, Horn Lake or West Memphis, are outside what we can finance.
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, Shelby County TN (and Tipton and Fayette), CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries, grid-sampled against Census TIGERweb boundaries | Computed 9 October 2026 |
| USDA income limits | USDA Rural Development Income Eligibility calculator, Shelby County | 9 October 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: 9 October 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 | Valor Mortgage, LLC is powered by Encore Lending Group, LLC NMLS #1249911 | Equal Housing Opportunity | 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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