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 | $960 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $259,716 | 0.53% | F |
| 3BR | $1,730 | $353,893 | 0.49% | F |
| 4BR | $1,810 | $451,967 | 0.4% | F |
| 5BR | $2,100 | $588,772 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 37312, located in Cleveland, TN, is situated within the larger Cleveland, TN Metropolitan Statistical Area (MSA). To understand its position relative to other ZIP codes within the same MSA, we can analyze several key metrics: Fair Market Rent (FMR), market rent, home values, and the percentage of renters.
ZIP 37312 has an FMR of $1210 for fiscal year 2024. This figure represents the threshold set by the U.S. Department of Housing and Urban Development (HUD) for determining eligibility for housing assistance programs such as Section 8. The market rent in this ZIP code is slightly higher at $1,390, indicating that rental properties are priced above the HUD's FMR but still remain relatively affordable compared to some other areas.
The median home value in ZIP 37312 is $350,232. This value is reflective of the overall real estate market in Cleveland, TN MSA, where home values typically range from moderate to high. However, the significant 33.1% renter share suggests a substantial portion of the population relies on rental housing, which is higher than the national average and indicates a strong demand for rental units.
When comparing these figures to typical ZIP codes within the Cleveland, TN MSA, it becomes evident that ZIP 37312 offers a balanced mix of affordability and demand. The FMR and market rent suggest it is not a premium sub-market but rather a mid-tier neighborhood where rental income can be competitive without being excessively high. The higher-than-average renter share combined with below-metro average home values could signal a potential sweet spot for landlords participating in Section 8 programs.
However, to conclusively determine if 37312 is a value pocket, further analysis would be required. A value pocket is characterized by lower property values and rents compared to the broader MSA, while still maintaining a reasonable renter share. In contrast, a premium sub-market would have higher property values and rents, attracting a different demographic.
In summary, ZIP 37312 appears to be a mid-tier neighborhood within the Cleveland, TN MSA. It offers a good balance between rental income and property values, with a notable renter share that makes it a suitable area for landlords interested in Section 8 participation. The slightly elevated market rent over the FMR also indicates a healthy rental market, though not necessarily premium.
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.