Location: Grundy 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 | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $453,235 | 0.27% | F |
U.S. Census Bureau data (2024)
The ZIP code 37356 stands out due to its unique demographic and economic characteristics. With a population of 2,679 residents, it has a rental rate of 25.9%, indicating a modest but present demand for rental properties. The median income in this area is $59,026, which is relatively stable and provides a solid financial foundation for the local economy. However, the median home value of $361,263 suggests that homeownership is more costly compared to the national average, making rental properties an attractive option for many.
When considering the economics of Section 8 vouchers in ZIP 37356, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $930. This figure is notably higher than the market rent reported by the Census American Community Survey (ACS), which is $752. This discrepancy presents an opportunity for landlords and small-portfolio investors, as they can potentially receive a higher rent subsidy through the Section 8 program than what the market currently offers.
The data signature for ZIP 37356 indicates a stable environment. The median income and home values suggest a consistent economic situation where the demand for affordable housing remains steady. Landlords and investors can expect a reliable flow of tenants who qualify for the Section 8 program, given the higher FMR compared to the actual market rent. This stability is crucial for long-term planning and investment in the area, ensuring that the financial benefits of participating in the Section 8 program can be realized without significant risk of fluctuation.
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.