Section 8 Fair Market Rent (FMR) for ZIP 37354 - 2027

Location: Monroe County, TN | Metro: McMinn County, TN

Investment Score for ZIP 37354

Monthly Rent (2BR)

$1,050

Median Price (2BR)

$235,452

1% Rule

0.45%

Annual Yield

5.35%

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	$810
1 Bedroom	$910
2 Bedrooms	$1,050
3 Bedrooms	$1,370
4 Bedrooms	$1,380
5 Bedrooms	$1,601
6 Bedrooms	$1,793
7 Bedrooms	$1,936
8 Bedrooms	$2,033

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,050	$235,452	0.45%	F
3BR	$1,370	$320,262	0.43%	F
4BR	$1,380	$385,684	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

17,356

Median Household Income

$54,550

Housing Units

7,287

Renter Percentage

28.6%

Occupancy Rate

95.1%

Renter Occupied

1,983

Madisonville, TN, located in the heart of Stewart County, is a small town with a population that primarily relies on local industries and agriculture. The area is characterized by its rural setting and close-knit community, making it an interesting market for real estate investors looking to tap into a stable but modest rental market.

The Fair Market Rent (FMR) for a two-bedroom apartment in the Madisonville metro area for fiscal year 2026 is set at $960.
The average market rent for properties in ZIP code 37354, based on Census American Community Survey (ACS) data, is $788.
The median home value in Madisonville is $286,613, indicating a moderate cost for property acquisition.
Renters make up 28.6% of the housing market in Madisonville, suggesting a decent demand for rental properties.
The median income in the area is $54,550, which can influence the affordability of housing for residents.
Note that the data does not provide the number of days on market (DOM), which would be useful for understanding how quickly properties sell.

The data points highlight a moderate rental market in Madisonville, TN, where the actual market rents are lower than the Fair Market Rent, indicating potential for rental income growth. With a median home value that is neither excessively high nor low, the town offers a balanced opportunity for both purchasing and selling properties. The significant portion of renters in the market suggests ongoing demand for affordable housing options. However, the lack of days on market data means there's an unknown factor regarding how quickly properties turn over, which could affect investment timelines and returns. For landlords and small-portfolio investors, Madisonville presents a stable but not highly lucrative environment, suitable for those seeking long-term, consistent returns rather than rapid appreciation or turnover.

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.