Location: Macon County, TN | Metro: Macon County, TN HUD Metro FMR Area
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 | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 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 | $1,020 | $199,693 | 0.51% | F |
| 3BR | $1,350 | $285,459 | 0.47% | F |
| 4BR | $1,580 | $334,420 | 0.47% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 37083 in Lafayette, TN, on the axes of yield and stability reveals a market that leans towards steady cash flow rather than high-yield/low-stability. The primary determinant for yield in this context is the comparison between the Fair Market Rent (FMR) and the median market rent. For fiscal year 2024, the FMR stands at $960, which is notably higher than the market rent of $862. This suggests that rental properties in this area can potentially command rents above the market average, offering a decent yield for investors.
However, the stability of the market is less robust. With only 24.7% of residents being renters, the demand for rental units is relatively low, which could lead to increased competition among landlords and potentially lower occupancy rates. Additionally, the lack of data on days on market (DOM) indicates uncertainty about how quickly properties can be rented out once they become available. The median household income of $61,843 provides some insight into the economic conditions of the area but does not directly correlate with rental stability.
To further analyze stability, consider the median home value of $270,169. This figure suggests that homeownership is prevalent, which aligns with the lower percentage of renters. However, it also implies that the area has a stable housing market, which can support steady cash flow through consistent rental income. Despite the lower renter population, the potential for slightly higher-than-market rents due to the FMR supports the idea that this is not a high-risk market.
In conclusion, ZIP 37083 is best classified as a steady-cashflow zone. The ability to charge rents closer to the FMR of $960 offers a reasonable yield, while the established home values and moderate income levels provide a foundation for stability. Although the renter population is not high, the market conditions still favor long-term investment over short-term, high-risk strategies.
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.