Location: Rhea 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 | $1,140 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $340,764 | 0.48% | F |
U.S. Census Bureau data (2024)
The economic landscape of ZIP code 37373 presents a nuanced situation for both renters and landlords. The median household income stands at $54,974, which places significant constraints on the ability of residents to afford the market rate rent of $1,027 per month, according to recent Census Bureau data. This figure represents approximately 22% of the median annual income, exceeding the recommended threshold of 30% for housing affordability.
Further complicating the financial picture is the Federal Market Rent (FMR) standard for Section 8 vouchers, set at $1,370 for the fiscal year 2024. This amount is significantly higher than the current market rate, potentially offering a more lucrative option for landlords who are willing to accept vouchers. However, it also highlights a substantial affordability gap for renters paying out-of-pocket, as the voucher rate is nearly 34% above the market rate.
With only 13.4% of the 3,273 population being renters, competition among landlords for tenants is likely to be fierce. Landlords must carefully consider their rental strategies to attract and retain tenants. Accepting Section 8 vouchers could provide a steady stream of income, albeit at a fixed rate, while focusing on cash-paying tenants might allow for more flexibility in pricing but could result in longer vacancies due to the limited pool of financially capable renters.
The takeaway for landlords: While the voucher rate exceeds the market rate, it offers a reliable source of income and access to a government-backed tenant pool. Landlords should weigh the benefits of guaranteed payments against the potential administrative complexities of participating in the Section 8 program. For those who opt to target cash-paying tenants, competitive pricing and appealing property features will be crucial to stand out in a market where many households struggle to meet even the current rental costs.
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.