Location: Rhea County, TN | Metro: Bledsoe County, TN
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 | $1,200 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,900 | $288,306 | 0.66% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37332 in Rhea County, TN, reveals several key points for potential Section 8 real-estate investments.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $1,390, while the current market rent, according to Census ACS data, is $1,029. This indicates that landlords participating in the Section 8 program can expect a significant increase in rental income, making the rent math favorable.
Secondly, regarding the affordability of property acquisition, the median home value in ZIP 37332 is $256,744. However, due to the lack of available data on the average days on market (DOM) and the percentage of homes requiring price cuts, it's challenging to assess the ease or difficulty of acquiring properties at a reasonable cost. Landlords should conduct further research into local real estate trends to determine if they can secure properties without overpaying.
Lastly, there is a need to consider the tenant demand. With a total population of 1,724, only 9.2% are renters. This suggests a limited pool of potential tenants, which could be a concern for landlords seeking to fill vacancies quickly and maintain consistent cash flow. The low renter share might also indicate that the area has a higher proportion of homeowners, potentially reducing the attractiveness for investors focusing solely on rental properties.
Verdict: ZIP 37332 presents an opportunity for Section 8 investments due to the favorable rent math, with a significant gap between the current market rent and the projected FMR. However, the acquisition process may be less straightforward given the median home value and the absence of specific DOM and price-cut data. Additionally, the low renter share poses a challenge for maintaining a steady stream of tenants. Landlords must weigh these factors carefully and possibly seek out strategies to mitigate the risks associated with lower tenant demand before committing to investments in this ZIP code.
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.