Location: Grundy County, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
The situation in ZIP code 37366 presents a unique challenge for both renters and landlords. Given the median household income of $58,616, it's crucial to assess whether residents can afford the local rental market rates. Unfortunately, the current market rate for rentals is listed as N/A, indicating a lack of recent data. However, we can still analyze the cost of housing through the lens of the Federal Market Rent (FMR) standards.
The FMR for ZIP 37366 in fiscal year 2024 is set at $1070. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent. Considering the median income, a household would have to allocate a significant portion of their earnings to cover even this subsidized rent amount. The absence of market rate data makes it difficult to provide a precise comparison, but it's reasonable to infer that the actual market rates exceed the FMR, creating an affordability gap for many residents.
With only 5.5% of the population being renters and a total population of 1,216, the rental market in ZIP 37366 is relatively small. This means that landlords face limited competition, which could be advantageous in terms of securing tenants. However, the small number of renters also implies that there might be fewer potential cash-paying tenants who can afford higher rents, especially if the local economy doesn't support a wide range of incomes.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. Given the high FMR relative to the median income, accepting Section 8 vouchers can be a viable option to ensure steady occupancy. While voucher payments are fixed, they offer a reliable source of income without the risk of vacancy. Landlords should weigh the benefits of guaranteed rental income against the administrative complexity and potential delays in voucher processing.
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.