Location: Chattanooga, TN | Metro: Chattanooga, TN-GA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $177,063 | 0.68% | D |
| 3BR | $1,480 | $236,210 | 0.63% | D |
| 4BR | $1,580 | $299,244 | 0.53% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 30741, Rossville, Georgia, involve understanding both the SAFMR (Small Area Fair Market Rent) and the local market rent rates. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1,160. This figure represents the maximum amount that the Section 8 program will reimburse a landlord for rent in this specific ZIP code.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), is $1,377. This means that without a voucher, landlords can expect to charge a higher rent based on the current market conditions in Rossville.
A Section 8 voucher does not cover the entire rent amount. Instead, it reimburses the landlord for the difference between the tenant's portion of the rent and the total rent. The tenant is required to pay 30% of their adjusted income towards rent, while the rest is covered by the voucher up to the SAFMR limit.
To illustrate, if a tenant has an adjusted income of $1,500 per month, they would be responsible for paying 30% of that income, which amounts to $450. The remaining rent is covered by the voucher, but only up to the SAFMR of $1,160. Therefore, the voucher would pay the landlord $710 ($1,160 - $450).
In addition to the base rent, Section 8 vouchers also include utility allowances. However, these allowances do not affect the calculation of the rent reimbursement directly; they are separate payments made to the tenant to help cover utilities.
Given the local market rent of $1,377, there is a noticeable gap between what the voucher pays and the market rate. In this case, the reimbursement gap for a two-bedroom apartment is $617 ($1,377 - $760). This means that landlords who choose to participate in the Section 8 program for a two-bedroom unit in ZIP 30741 would see a shortfall of $617 compared to the market rent they could otherwise charge.
For landlords considering whether to accept a Section 8 voucher in this ZIP code, it's important to weigh the guaranteed monthly rent against the potential gap. While the SAFMR of $1,160 provides a stable income source, it falls short of the market rent by $617, indicating a significant surplus when comparing the two figures.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.