Location: McMinn County, TN | Metro: Cleveland, TN 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 | $800 |
| 1 Bedroom | $960 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $171,748 | 0.65% | D |
| 3BR | $1,430 | $245,895 | 0.58% | F |
| 4BR | $1,470 | $308,476 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 37331, which encompasses Etowah, TN, and part of the McMinn County, TN metro area, does not favor landlords. The Federal Market Rent (FMR) for FY 2024 is set at $920, but the actual market rent based on Census ACS data is only $744. This means that landlords aiming to meet the FMR will be overpricing their units relative to the local market, potentially leading to vacancy issues.
Acquisition in ZIP 37331 is relatively affordable, with a median home value of $214,594. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share suggest that homes are not typically sitting on the market long or requiring significant discounts to sell. This indicates that while homes are reasonably priced, they may not be as easily acquired as in areas with higher DOM rates or larger price-cut shares.
Tenant demand is present but limited. With a population of 7,613, 24.8% are renters, translating to approximately 1,896 potential tenants. This figure is not substantial given the size of the population, which could result in stiff competition among landlords for these rental units. The relatively small number of renters also implies that the rental market might not be robust enough to sustain high rents without risking vacancies.
In conclusion, ZIP 37331 presents challenges for landlords due to the discrepancy between the FMR and the actual market rent, suggesting that properties priced at the FMR level may struggle to attract tenants. Acquisition is affordable, but the market dynamics indicate that homes may not be easily acquired at discounted rates. Tenant demand exists but is limited, making it a niche market where careful pricing and management strategies are essential for success. Landlords should consider setting rents closer to the market rate of $744 to ensure occupancy and profitability.
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.