Section 8 Fair Market Rent (FMR) for ZIP 37343 - 2027

Investment Score for ZIP 37343

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,350
1 Bedroom	$1,410
2 Bedrooms	$1,530
3 Bedrooms	$1,890
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,530	$280,178	0.55%	F
3BR	$1,890	$339,164	0.56%	F
4BR	$2,010	$438,119	0.46%	F
5BR	$2,332	$557,482	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 37343 (Hixson, TN) #### Section 8 Voucher Dynamics In ZIP code 37343, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1570 per month for 2026. This amount represents 22.9% of the median household income in Hixson, which is $82,227. The FMR is designed to reflect the average rent that a tenant can afford based on their income level. However, it is important to understand how these figures compare to actual rents in the area. Actual rental rates in Hixson are likely higher than the FMR due to the high price-to-FMR ratio observed. According to Zillow, the median price for a two-bedroom home is $281,100, translating to a price-to-FMR ratio of approximately 14.9 times. This suggests that the actual rental costs could be significantly above the FMR. For instance, if we assume a typical rental yield of 5%, the monthly rent for a property priced at $281,100 would be around $1171 per month, which is still below the FMR but indicates that the actual market rent could be much higher. The constraints for voucher holders include finding landlords who accept Section 8 vouchers and securing units that fall within the FMR guidelines. Given the high price-to-FMR ratio, many properties might exceed the FMR, making it difficult for voucher holders to find suitable housing. Additionally, landlords may be hesitant to accept vouchers due to the administrative burden and potential delays in receiving payments. #### Affordability & Renter Profile The population of Hixson is 45,101, with 24.0% of residents being renters. This means there are approximately 10,824 renters in the area. The occupancy rate stands at 95.1%, indicating a relatively tight rental market where most available units are occupied. This tightness could lead to higher rents and competition among tenants. Given the median household income of $82,227, the majority of renters in Hixson are likely employed individuals or families who can afford market-rate rents. However, there is a segment of the population that relies on Section 8 vouchers to secure affordable housing. These voucher holders face significant challenges due to the high price-to-FMR ratio, which suggests that the rental market is not aligned with the FMR guidelines. #### Investor Angle From an investor’s perspective, the key question is whether the rental market in ZIP 37343 offers cash-flow positive opportunities at the FMR levels. Given the Zillow median price for a two-bedroom home at $281,100, the expected rental yield at the FMR of $1570 would be approximately 6.3%. This is calculated by taking the annual FMR ($1570 * 12 = $18,840) and dividing it by the median home price ($281,100). A yield of 6.3% is generally considered competitive but depends on the investor’s cost structure, including mortgage payments, maintenance, and other expenses. The investment grade for this ZIP code would be moderate. While the rental market appears to be tight, the high price-to-FMR ratio suggests that the actual rents may be above the FMR, potentially leading to lower occupancy rates for properties priced at the FMR. Investors should consider the possibility of higher vacancy rates and the need to attract voucher holders, who may require additional support and management. #### Specific Actionable Insights 1. **Target Properties Below Zillow Median**: Investors should focus on acquiring properties priced below the Zillow median of $281,100. This will ensure a higher rental yield and better alignment with the FMR. For example, a property priced at $250,000 would offer a rental yield of about 7.5% at the FMR of $1570, making it more attractive financially. 2. **Consider Multi-Family Units**: Given the high FMR for larger units (e.g., three-bedroom at $1960), multi-family units such as duplexes or small apartment buildings could provide better cash flow. These units can be rented out individually or as a whole, allowing investors to capture higher rents while still offering affordability to voucher holders. 3. **Engage with Local Landlords**: Building relationships with local landlords who already accept Section 8 vouchers can help navigate the administrative complexities and increase the likelihood of successful tenancies. This approach can also provide valuable insights into the local rental market dynamics and tenant preferences. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 37343 is to **Hold**. The high price-to-FMR ratio makes it challenging to find properties that are both affordable and cash-flow positive. While there are opportunities to invest in properties below the Zillow median price, the overall tightness of the rental market and the administrative burden of accepting vouchers suggest that this ZIP code is not ideal for new investors looking to enter the Section 8 market. Existing investors with a strong understanding of the local market and established relationships with voucher holders may find some success, but new entrants should proceed with caution.

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.