Location: McMinn County, TN | Metro: McMinn 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 | $790 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $184,519 | 0.56% | F |
| 3BR | $1,260 | $285,218 | 0.44% | F |
| 4BR | $1,350 | $361,878 | 0.37% | F |
| 5BR | $1,566 | $413,423 | 0.38% | F |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP code 37303, Athens, TN, include significant tenant turnover due to the disparity between the market rent of $1,210 and the Fair Market Rent (FMR) of $940 for fiscal year 2026. This difference can lead to frequent changes in occupancy, increasing management costs and time spent on screening and leasing processes.
Vacancy exposure is another concern, considering that properties typically stay on the market for 32 days before being rented. This period of time without rental income can strain cash flow and affect overall profitability. Furthermore, the deferred maintenance risk is heightened given the typical home value of $262,218 and the median income of $62,078. Landlords must be prepared to handle maintenance and repair costs that tenants may not be able to afford due to their lower income levels.
However, these risks are balanced by the high proportion of renters in the area, with 29.1% of residents classified as renters. High renter density generally correlates with higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The concentration of renters also suggests a robust local rental market, which can support the long-term viability of Section 8 investments.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.