Location: Cleveland, TN | Metro: Cleveland, TN 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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $305,056 | 0.47% | F |
U.S. Census Bureau data (2024)
930 is the Fair Market Rent (FMR) for ZIP code 37307 as of fiscal year 2024, indicating the maximum amount a Section 8 voucher holder can pay for housing. 613 is the average market rent based on Census ACS data, suggesting that properties priced below the FMR could attract both voucher holders and non-subsidized tenants. 261,844 represents the median home value in the area, which is a critical figure for assessing property investment potential. 24.9 is the percentage of the population that rents, highlighting a significant demand for rental properties. 73,854 is the median income, providing insight into the financial capabilities of residents. However, the lack of data on days on market (DOM) and the percentage of price-cut share indicates stability in the local real estate market, without frequent price adjustments or long periods of unsold inventory.
930 FMR sets a benchmark for rental pricing, ensuring landlords receive competitive rates when renting to Section 8 participants. 613 average market rent is lower than the FMR, implying that there's room for landlords to adjust their rates to cater to subsidized renters without significantly undercutting the market. 261,844 median home value suggests that residential properties in 37307 hold steady value, making it a reliable area for real estate investments. 24.9% of the population being renters underscores the ongoing need for rental units, supporting the viability of rental properties. 73,854 median income, while not high, is sufficient for many to afford housing costs, especially if they receive assistance through Section 8.
The absence of fluctuating market conditions, as evidenced by the N/A values for DOM and price-cut share, points to a stable market where landlords can expect consistent returns. This stability, combined with the strong demand for rentals and the alignment between market rents and FMRs, makes ZIP 37307 an attractive option for landlords and small-portfolio investors looking to participate in the Section 8 program. The verdict for Section 8 participation in 37307 is positive, given the favorable economic indicators and the potential for steady cash flow.
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.