Location: McMinn County, TN | Metro: Cleveland, TN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $1,000 |
| 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 |
U.S. Census Bureau data (2024)
ZIP 37309, located in McMinn County, TN, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. This designation is supported by the significant spread between the Fair Market Rent (FMR) of $1270 for FY 2024 and the current market rent of $902. This discrepancy ensures a higher-than-average rental income, beneficial for landlords and small-portfolio investors.
The median home value in ZIP 37309 is $254,314, indicating a relatively stable and affordable market for property acquisition. Although the ZIP does not present strong appreciation potential, with no significant price-cut share or days on market (DOM) trends available, the focus should remain on the steady rental income rather than speculative growth.
ZIP 37309 also offers a diversification opportunity within a broader investment strategy, with a 19.1% renter share and a median income of $63,699. However, given the current market conditions, the primary role of properties in this ZIP remains as a cash-flow anchor. The consistent rental rates ensure predictable income, which is crucial for maintaining financial stability and covering mortgage payments and maintenance costs.
Investors should prioritize acquiring properties that align with the FMR, ensuring compliance with HUD regulations while maximizing rental income. The data suggests that ZIP 37309 will continue to offer a reliable source of cash flow, making it a valuable addition to any Section 8-focused real estate portfolio.
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.