Location: Bledsoe County, 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 | $870 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $193,624 | 0.52% | F |
| 3BR | $1,230 | $304,166 | 0.4% | F |
| 4BR | $1,320 | $423,370 | 0.31% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 37327, Dunlap, TN, presents a unique opportunity for landlords and small-portfolio investors. With a median home value of $276,709, the area reflects a stable housing market. The fact that only 0.2% of listings have seen price reductions indicates strong seller's market conditions, suggesting that homeowners are generally satisfied with their property values and unwilling to lower them significantly.
The median days on market (DOM) being listed as N/A suggests either very quick sales or an insufficient sample size for accurate measurement. In either case, it points towards a robust demand for properties in Dunlap, which supports the notion of strong pricing power for the near future. Landlords and investors can expect to maintain or even slightly increase rental rates due to the tight supply and high demand dynamic.
On the rental side, the Fair Market Rent (FMR) for ZIP 37327 in fiscal year 2024 is set at $1020. This is notably higher than the current market rent of $844, as reported by the Census Bureau's American Community Survey. This gap signals potential upward pressure on rental prices, indicating that there is room for rental rate adjustments to align with FMR levels without losing tenants.
For long-term investors, the setup implies a realistic appreciation thesis based on the convergence of market rents toward FMR levels. As rental prices adjust, the overall desirability of the area may increase, potentially leading to gradual property value appreciation. However, the limited data on DOM and the relatively low percentage of price reductions suggest that while appreciation is likely, it will be modest and steady rather than rapid.
In summary, the combination of a stable median home value, minimal price reductions, and a positive spread between current market rents and FMR points to a favorable environment for maintaining and slightly increasing property values and rental rates. Investors should focus on positioning themselves to benefit from the steady growth expected in the area.
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.