Location: Coffee County, TN | Metro: Coffee 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 | $830 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $310,529 | 0.44% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37342 in the metro area for fiscal year 2026 is set at $930. This figure represents the payment standard for Section 8 housing vouchers, meaning that voucher holders will be able to receive assistance up to this amount. It's important to note that this does not mean you can charge $930 for rent; rather, it indicates the maximum subsidy that the government will provide.
In comparison, the average rent in ZIP 37342, according to the latest Census American Community Survey (ACS), is $913. This suggests that the FMR is slightly above the market rate, which could be beneficial for landlords as it allows for a margin above the typical rent costs.
The local renter share stands at 17.0%, indicating that nearly one in every six residents in the area are renters. This shows a significant demand for rental properties, especially those that qualify under the Section 8 program. The demand for affordable housing can be a reliable source of tenants, reducing the risk of vacancy.
If you're considering purchasing a property in ZIP 37342 to use as a Section 8 rental, the median home value is approximately $330,665. This is the price range you should expect when acquiring a property in this area. While the initial investment might seem high, the steady income from the Section 8 program can make it a worthwhile venture.
Before making your decision, verify that the property meets all the eligibility requirements for Section 8 rentals. This includes ensuring that the unit is safe, decent, and sanitary, as well as confirming that the rent you charge is within the allowable limits set by the Housing Authority. These steps are crucial to ensure that your investment will be successful and compliant with the program.
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.