Section 8 Fair Market Rent (FMR) for ZIP 37329 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 37329

• Etowah Housing Authority (Etowah, TN) - 122 Section 8 vouchers
• Sweetwater Housing Authority (Sweetwater, TN)
• Athens Housing Authority (Athens, TN)

A decision tree for evaluating whether to purchase properties in ZIP code 37329 for Section 8 investment hinges on three key questions.

1) Does the Fair Market Rent (FMR) of $930 cover the debt service on a property valued at $249,184?

• Yes: The FMR of $930 is sufficient to cover the debt service on a property costing $249,184. This means that if you can acquire a property within this price range, the rental income will meet your financial obligations, including mortgage payments and other costs associated with owning the property.
• No: If the property value exceeds $249,184, the FMR of $930 might not be enough to cover the debt service. In this case, purchasing a more expensive property would likely result in insufficient rental income to meet financial obligations.

2) How does the market rent of $792 compare to the FMR of $930?

• Market rent is below FMR: At $792, the market rent is lower than the FMR. This indicates that Section 8 tenants can potentially pay a higher rent subsidy than what the market dictates, making the area attractive for Section 8 investments.
• Market rent is equal to or above FMR: If the market rent were to rise and match or exceed the FMR, then there would be less financial incentive for landlords to participate in the Section 8 program. However, given the current scenario where market rent is below FMR, there is an advantage to participating in the program.

3) Is there sufficient demand with 16.7% of residents being renters and the average days on the market (DOM) being N/A?

• It depends: With 16.7% of residents being renters, there is a moderate level of demand. However, the lack of data regarding the average DOM makes it challenging to assess how quickly properties are typically leased. To make a definitive decision, further investigation into the leasing trends and vacancy rates in ZIP 37329 is necessary.

In conclusion, if you can secure a property within the $249,184 budget, the FMR of $930 covers the debt service and provides a competitive edge over market rents at $792. However, the success of your investment also relies on the availability of Section 8 tenants and the speed at which properties are rented out, which requires additional data to confirm.

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.