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)
The classification of ZIP code 37326 hinges on its financial metrics, specifically the Federal Market Rent (FMR) and rental market conditions. For fiscal year 2024, the FMR for ZIP 37326 is set at $860, while the average market rent stands at $577. This discrepancy indicates a potential high-yield market due to the subsidy gap. Landlords can leverage the higher FMR to achieve better returns on their investment properties compared to the local market rates.
Stability in ZIP 37326 is partially indicated by the percentage of renters, which is 52.8%. However, without additional data such as days on market (DOM) and median household income, a complete assessment cannot be made. The high percentage of renters suggests a significant portion of the population relies on rental housing, which can provide consistent cash flow if the demand for rental units remains stable.
Given the available data, ZIP 37326 leans towards being a high-yield market due to the favorable FMR rate. The subsidy difference between the FMR and market rent ($860 vs $577) allows landlords to potentially increase their income per unit beyond what the local market would offer. However, the lack of specific income and DOM data prevents a definitive statement on stability. Assuming the demand for rental units holds steady, the area could support a steady-cashflow strategy, but the high-yield aspect is more pronounced based on the given figures.
To make an informed decision, landlords should consider supplementing the existing data with insights on local employment trends, median household income, and the supply of rental properties. These factors will help determine whether the market is truly stable enough to sustain long-term investments or if it's more suited for short-term flips aiming to capitalize on the subsidy gap.
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.