Location: Chattanooga, 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 | $1,270 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $268,449 | 0.54% | F |
| 3BR | $1,780 | $334,173 | 0.53% | F |
| 4BR | $1,890 | $419,803 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 37341, which encompasses Harrison, Tennessee, reveals a significant financial dynamic that impacts both landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1370, while the Census American Community Survey (ACS) indicates the average market rent stands at $1283. This means the FMR is $87 higher than the market rate, representing a 6.8% premium.
The gap between FMR and market rent suggests that landlords who accept Section 8 vouchers can expect to receive a slightly higher rental income compared to the open-market rate. This makes it a potentially attractive yield play for those managing properties in Harrison, TN. Given the local context where only 18.6% of residents are renters and the median home value is $341,743, the demand for rental units might be lower, making the consistent payment from voucher tenants particularly appealing.
Moreover, the median income in Harrison, TN is $92,120, indicating that many residents might find it challenging to afford market rents without assistance. The higher FMR provides a buffer against potential financial instability among tenants, ensuring a steady and reliable income stream for landlords. However, it's important to note that the acceptance of Section 8 vouchers also comes with certain administrative and regulatory obligations, which must be weighed against the financial benefits.
In summary, the $87 premium on FMR over market rent in Harrison, TN presents an opportunity for landlords to secure a slightly higher yield than what is typically available in the open market. This financial advantage is especially valuable given the relatively low percentage of renters and the high median home value 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.