Location: Houston County, TN | Metro: Stewart 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 | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $263,570 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 37178 might raise several valid concerns regarding the feasibility of investing in properties within this area. Let's address these concerns head-on using the available data.
Objection 1: Will FMR $970 (zip FY 2024) cover the mortgage on a $229,145 home?
The Fair Market Rent (FMR) for ZIP 37178 is projected to be $970 in fiscal year 2024. To determine if this will cover the mortgage on a $229,145 home, we must consider the prevailing interest rates and typical loan terms. Assuming a 30-year fixed-rate mortgage with an average interest rate of 5%, the monthly payment on such a property would be approximately $1,200. This means that the FMR of $970 falls short by roughly $230 per month. However, it's important to note that the FMR represents the median rent, and some units could command higher rents depending on their condition and location.
Objection 2: Is there enough renter demand at 6.8%?
The rental vacancy rate in ZIP 37178 stands at 6.8%. This percentage suggests a moderate level of demand; however, it's crucial to understand what constitutes a healthy vacancy rate. A rate below 5% often indicates a tight rental market with high competition among renters, while a rate above 10% can signal a surplus of rental units. At 6.8%, the market is neither overly competitive nor saturated, but it does require careful tenant selection and maintenance of properties to ensure occupancy. The data doesn't provide specifics on the number of renters or the types of units they prefer, which would be beneficial to know for a more comprehensive analysis.
Objection 3: Will vouchers keep pace with $1,042 market rents?
The voucher amount in ZIP 37178 is expected to be $970, while the market rent is estimated at $1,042. This discrepancy of $72 means that landlords relying solely on vouchers may face a shortfall. However, the Housing Choice Voucher Program aims to cover a substantial portion of the market rent, typically up to 30% of the area median income. It's essential to monitor local housing authority policies and federal funding updates to anticipate any changes in voucher amounts. Additionally, landlords might consider supplementing the voucher with a small co-payment from tenants to bridge the gap.
In conclusion, while the data provides insights into the challenges of investing in ZIP 37178, it also highlights potential strategies to mitigate risks. Careful financial planning and understanding of local market dynamics are key to success in this investment climate.
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.