Section 8 Fair Market Rent (FMR) for ZIP 37151 - 2027
Location: Smith County, TN | Metro: Smith County, TN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $990 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$102,168
To determine if a landlord should buy in ZIP code 37151 for Section 8 purposes, follow this decision tree:
- Does FMR $980 clear debt service on a $302,830 property?
- If yes: The Fair Market Rent (FMR) of $980 is sufficient to cover the debt service on a property valued at $302,830. This means that a landlord can expect the rental income to meet their financial obligations.
- If no: The FMR of $980 is insufficient to clear the debt service on a property worth $302,830. A landlord would likely face financial strain trying to manage a property under these conditions.
- Is market rent above, at, or below FMR?
- If market rent is above FMR: Landlords can potentially charge more than the FMR of $980, which could provide additional income beyond what is necessary to cover debt service. However, this does not guarantee that tenants will be able to afford the higher rates.
- If market rent is at FMR: The market rent aligns with the FMR of $980, indicating that the rental income will closely match the fair market value set by HUD.
- If market rent is below FMR: Landlords cannot charge more than the FMR of $980, which might limit potential rental income. This scenario requires careful consideration of the property's cost and expenses.
- Are 0.0% renters and N/A-day days on market enough demand?
- If there is enough demand: Despite the low percentage of renters, the days on market (DOM) being N/A suggests that properties are either rented quickly or there is limited inventory available, indicating strong demand.
- If there is not enough demand: With 0.0% renters and N/A-day DOM, the demand for rentals in ZIP 37151 is too low. Landlords would struggle to find tenants willing to pay the FMR or market rent.
The decision to invest in ZIP 37151 hinges on the answers to these questions. If the FMR clears debt service and the market rent is favorable, landlords must still consider whether the demand is robust enough to ensure occupancy. In this case, the lack of data on the percentage of renters and DOM makes it difficult to assess the overall demand accurately.
Note: Specific figures for market rent and percentage of renters were not provided, leading to some branches being less definitive.
Data Sources: FMR data from HUD (2027). 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.