Location: Grundy County, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The classification of ZIP code 37365 hinges on its financial metrics and demographic indicators. The Federal Market Rent (FMR) for ZIP 37365 in fiscal year 2024 is set at $890. This figure is notably higher than the market rent of $575, indicating a potential yield advantage for landlords participating in the Section 8 program. However, the median home value in this area stands at $147,359, which is relatively high compared to the average income of residents at $54,907. This suggests that there might be a mismatch between the affordability of housing and the income levels of potential tenants.
On the stability axis, the ZIP code has an occupancy rate of 8.2% for renters, which is low. This percentage indicates that only a small fraction of the population is actively seeking rental housing, potentially leading to longer vacancy periods and increased competition among landlords. The absence of data regarding days on market (DOM) further underscores the uncertainty around how quickly properties can be leased out in this area.
Given these figures, ZIP 37365 leans towards being a high-yield/low-stability market. The significant gap between the FMR and the market rent implies that landlords can achieve higher yields through Section 8 participation. However, the low percentage of active renters and the lack of DOM data suggest that maintaining steady cash flow could be challenging due to potential difficulties in leasing properties promptly. Additionally, the high median home value relative to the average income points to a market where affordability issues could impact tenant retention and stability.
To summarize, while the yield potential is strong, driven by the disparity between FMR and market rent, the stability of cash flow is compromised by the limited number of active renters and the economic conditions that may affect timely tenancy. Landlords should consider these factors carefully when deciding to invest in this ZIP code.
Data Sources: FMR data from HUD (2027). 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.