Location: Van Buren 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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $196,974 | 0.55% | F |
| 3BR | $1,300 | $285,787 | 0.45% | F |
U.S. Census Bureau data (2024)
In ZIP code 37367, which encompasses Pikeville, TN, and Bledsoe County, the Section 8 program operates under specific economic guidelines. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this area is set at $1020 per month for FY 2024. This figure is important because it is the maximum amount that the housing authority can pay towards the rent subsidy for a unit of this size.
The local market rent for a two-bedroom apartment, based on the latest Census ACS data, is $829 per month. This represents the average rent price that landlords typically charge for similar units in the area.
A voucher payment under Section 8 consists of two parts: the tenant's portion and the housing authority's portion. The tenant's portion is generally calculated as 30% of their adjusted monthly income. If the tenant's income is $1500 per month, their portion would be $450 ($1500 * 0.30).
The housing authority will then pay the difference between the tenant's portion and the SAFMR. In this case, the housing authority would pay up to $570 per month ($1020 - $450). However, if the actual rent charged by the landlord is less than the SAFMR, the housing authority will only pay the difference between the tenant's portion and the actual rent. For instance, if the landlord charges $829, the housing authority would pay $379 ($829 - $450).
Utility allowances are also part of the calculation but are not included in the SAFMR. Landlords should consider these when determining the total compensation they receive. Utility allowances vary based on the region and type of unit, but they do not exceed the SAFMR limit.
To summarize, in ZIP 37367, landlords can expect a typical reimbursement for a two-bedroom unit to be around $379 from the housing authority, assuming the tenant's income is $1500 per month and the landlord charges the local market rent of $829. This leaves a $151 surplus for the landlord compared to the local market rent, as the housing authority pays up to $570 to meet the SAFMR of $1020. However, if the landlord charges more than $829, the surplus will decrease proportionally.
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.