Location: Warren County, 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $184,536 | 0.57% | F |
| 3BR | $1,250 | $280,221 | 0.45% | F |
| 4BR | $1,380 | $366,109 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 37110, located in McMinnville, TN, within the Warren County area, reveals several key points for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1020. In contrast, the Zillow Observed Rent Index (ZORI), which reflects actual market conditions, stands at $974. This indicates that voucher tenants generally cashflow at the FMR level, with a slight margin above the market rate.
To further evaluate the investment potential, consider the median home value of $254,451. The rent-to-price ratio can be derived by comparing the monthly rent to the total home value. At the HUD FMR, the annual rent would be $12,240, leading to a rent-to-price ratio of approximately 4.8%. This suggests that rental income is a modest portion of the property's value, making it less attractive purely on a cashflow basis but still viable for investors seeking stable returns.
The median days on market (DOM) for properties in this area is 85 days, indicating a relatively quick turnover for homes when they come up for sale. Additionally, the price-cut share of 0.3% implies that sellers rarely need to lower their asking prices, suggesting strong demand and stability in the housing market. These factors indicate that the rent-vs-buy dynamics favor stability over rapid appreciation.
In conclusion, while the primary investor angle in ZIP 37110 is stability due to consistent demand and minimal price adjustments, there is also a positive cashflow component when accepting Section 8 vouchers at the HUD FMR. This makes the area an ideal choice for investors looking for reliable, steady returns.
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.