Location: Cleveland, TN | Metro: Cleveland, TN MSA
| 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 |
U.S. Census Bureau data (2024)
ZIP code 37317 is a small, residential neighborhood with a total population of 2,582. Only 10.9% of residents are renters, indicating a primarily owner-occupied community. The median household income stands at $72,371, reflecting a middle-class area where most residents have stable financial situations. The median home value is $205,323, suggesting that homes are moderately priced and likely appeal to first-time buyers and long-term residents.
The rent economics in ZIP 37317 present an interesting opportunity for investors. According to the Fair Market Rent (FMR) data for the fiscal year 2024, the FMR is set at $860. However, the actual market rent, based on Census ACS data, is lower at $693. This discrepancy means that landlords who accept Section 8 vouchers can potentially receive higher rental payments than the market average, making it a lucrative option for those seeking stable, government-backed income.
Given these factors, ZIP 37317 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the guaranteed income from Section 8 vouchers, which exceeds the current market rent, provides a reliable source of cash flow without the need for active property management. On the other hand, value-add buyers could capitalize on the difference between the FMR and market rent by improving properties and gradually increasing rents towards the FMR level, thereby enhancing their investment returns over time.
Investors should note that while the percentage of renters is relatively low, the potential for growth exists due to the favorable rent-to-income ratio and the government's commitment to maintaining the FMR at $860. This environment supports both passive and active investment strategies, offering flexibility for different types of investors.
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.