Location: Grundy County, TN | Metro: Chattanooga, TN-GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate market in ZIP code 37374 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1280, while the market rent, as reported by the Census ACS, is $722. This discrepancy translates into a difference of $558 per month, representing a 77.3% increase over the market rent.
In ZIP 37374, where only 18.3% of residents are renters and the median home value is $233,635, the median income is $67,826. Given these economic conditions, it becomes clear that voucher tenants can provide a substantial yield advantage for landlords and small-portfolio investors. The FMR exceeds the market rent by a considerable margin, making it financially beneficial to accept Section 8 vouchers.
The higher FMR ensures that landlords receive a rent amount closer to what they would expect in a competitive market, thus mitigating the risk of renting below open-market rates. This is particularly important in an area where the median income is relatively low, and the number of renters is limited. Accepting Section 8 vouchers can stabilize cash flow and offer a predictable income stream, aligning with the broader economic context of the region.
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.