Location: Marshall County, TN | Metro: Giles County, TN
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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $302,082 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 37047 is a modest-sized residential area with a population of 2,834 individuals. It is characterized by a relatively low percentage of renters at 19.2%, indicating that homeownership is prevalent among its residents. The median income here stands at $64,688, which places it squarely in the middle-income bracket, suggesting a stable economic base. The median home value in this ZIP code is $312,087, reflecting a mix of affordability and desirability for those looking to invest in property.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,000. However, the current market rent, as per the Census ACS, is slightly lower at $969. This difference highlights a potential opportunity for investors to align their rental prices with the government's FMR guidelines, which can be particularly attractive for those interested in participating in the Section 8 program.
The question then arises: Is ZIP 37047 better suited for a hands-off voucher operator or a hands-on value-add buyer? Given the modest size of the rental market and the relatively high homeownership rate, a hands-off approach might struggle due to the limited number of eligible tenants. On the other hand, a hands-on value-add strategy could prove more effective. By improving properties to meet higher standards and potentially increasing rents closer to the FMR, an active investor could create a niche market for themselves, attracting tenants willing to pay slightly more for enhanced living conditions.
To conclude, ZIP 37047 presents a balanced environment where both hands-off and hands-on strategies could find success, but the latter may offer greater returns given the right execution. The economic indicators suggest a stable and moderate investment climate, making it a reasonable choice for Section 8 investors looking to diversify their portfolios or enter a new market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.