Section 8 Fair Market Rent (FMR) for ZIP 37322 - 2027

Location: Meigs County, TN | Metro: McMinn County, TN

Investment Score for ZIP 37322

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$268,997

1% Rule

0.39%

Annual Yield

4.73%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$820
2 Bedrooms	$1,060
3 Bedrooms	$1,270
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$268,997	0.39%	F
3BR	$1,270	$340,540	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

9,101

Median Household Income

$57,929

Housing Units

3,943

Renter Percentage

23.3%

Occupancy Rate

87.1%

Renter Occupied

800

Decatur, TN, located in Hardin County, is a small town with a population of around 12,000 residents. The area is characterized by its rural setting and proximity to larger cities such as Jackson, which provides both opportunities and challenges for real estate investment. Here is a concise analysis based on key metrics relevant to the Section 8 housing market:

The Fair Market Rent (FMR) for Decatur, TN, for the metro fiscal year 2026 is set at $930, indicating the maximum amount that can be charged for a Section 8 voucher.
The average market rent for the area, according to the Census American Community Survey, stands at $893, slightly below the FMR but still offering competitive returns for landlords.
The median home value in Decatur, TN, is $275,950, reflecting the overall cost of homeownership in the region.
Renters make up 23.3% of the local housing market, suggesting a moderate demand for rental properties.
The median income for residents is $57,929, providing insight into the financial capabilities of potential tenants.

The data points above suggest that while Decatur, TN, offers a modest market rent environment, the alignment between the FMR and market rent presents a stable investment opportunity for landlords and small-portfolio investors. With a median home value that is relatively high compared to the median income, it indicates that owning a home might be challenging for some, thereby supporting a steady demand for rental units. The 23.3% renter share also signals a consistent tenant base, making Decatur a viable option for those interested in Section 8 housing investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.