Location: Cleveland, TN | Metro: Chattanooga, TN-GA 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 | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $193,329 | 0.64% | D |
| 3BR | $1,540 | $286,399 | 0.54% | F |
| 4BR | $1,620 | $399,733 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 37311, located in Cleveland, Tennessee, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1100 per month for fiscal year 2024. This SAFMR is specific to this ZIP code, meaning it reflects the rental market conditions here uniquely.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1417 per month. This is the average rent price that tenants can expect to pay for a similar two-bedroom unit in the same area without a voucher.
When a tenant uses a Section 8 voucher, they contribute a portion of their income towards rent. Typically, this contribution is 30% of their adjusted income. If we assume an average adjusted income of $1800 for a tenant in this scenario, the tenant's portion would be $540. This leaves the Housing Authority responsible for covering the remainder up to the SAFMR limit.
In addition to the base rent, there are utility allowances. These vary but generally add around $200 to the total amount covered by the Housing Authority. Therefore, the total reimbursement a landlord can expect from the Housing Authority for a two-bedroom unit is approximately $1300 ($1100 base rent + $200 utilities).
This means that if the local market rent is $1417, landlords will have a reimbursement gap of $117 per month. This gap represents the difference between the market rent and the total amount reimbursed by the Housing Authority. Conversely, if the rent is set below the market rate, say at $1200, landlords would see a surplus of $100 per month, which is the difference between the reimbursement and the rent charged.
To summarize, landlords in ZIP 37311 should understand that the SAFMR sets a cap on what the Housing Authority will reimburse. With a SAFMR of $1100 and a typical ZORI of $1417, the average reimbursement gap for a two-bedroom unit is $117 per month. This gap must be accounted for in the overall financial planning of the property.
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.