Location: Meigs 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 | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $420,652 | 0.35% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP code 37336 for Section 8 properties starts with understanding the Fair Market Rent (FMR) and how it aligns with the financial metrics of the investment.
Step 1: Clearing Debt Service
The FMR for ZIP 37336 in fiscal year 2024 is $1220. This figure must be compared against the debt service of a property priced at $382,589. If the monthly rental income does not cover the mortgage payment and other costs associated with owning the property, then investing in this ZIP code is not advisable. For instance, if the total debt service is higher than $1220 per month, the answer is No. Otherwise, proceed to Step 2.
Step 2: Market Rent Comparison
The market rent in ZIP 37336, according to Census ACS data, is $882. This is below the FMR of $1220. If you plan to participate in the Section 8 program, this means you can potentially charge the higher FMR rate. However, if you intend to operate outside of the Section 8 program, you will be limited to the lower market rent rate. Thus, if your strategy is to exclusively rent to non-Section 8 tenants, the answer is No. If you are willing to participate in the Section 8 program, proceed to Step 3.
Step 3: Rental Demand Analysis
In ZIP 37336, 12.9% of the population are renters. The days on the market (DOM) for rental properties is listed as N/A, which suggests there might be insufficient data to determine the average time it takes for a rental property to be occupied. Given the rental percentage, if the DOM is short, indicating high demand, then the answer is Yes. High demand means that finding tenants willing to pay the FMR is likely. Conversely, if the DOM is long or if there is a significant oversupply of rental units, the answer is No.
It Depends
To summarize, investing in ZIP 37336 for Section 8 properties hinges on whether the FMR of $1220 can cover the debt service, the willingness to participate in the Section 8 program given the lower market rent of $882, and the overall demand for rentals as indicated by the DOM and the percentage of renters. If all these factors align favorably, the investment can be viable; otherwise, it may not meet your financial goals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.