Section 8 Fair Market Rent (FMR) for ZIP 37379 - 2027

Location: Bledsoe County, TN | Metro: Chattanooga, TN-GA MSA

Investment Score for ZIP 37379

F
Monthly Rent (2BR)
$1,180
Median Price (2BR)
$231,334
1% Rule
0.51%
Annual Yield
6.12%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,040
1 Bedroom$1,080
2 Bedrooms$1,180
3 Bedrooms$1,460
4 Bedrooms$1,550
5 Bedrooms$1,798
6 Bedrooms$2,014
7 Bedrooms$2,175
8 Bedrooms$2,284

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,180 $231,334 0.51% F
3BR $1,460 $357,109 0.41% F
4BR $1,550 $524,309 0.3% F
5BR $1,798 $735,930 0.24% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
29,430
Median Household Income
$88,875
Housing Units
12,257
Renter Percentage
17.5%
Occupancy Rate
92.7%
Renter Occupied
1,984

The ZIP code 37379, located in Soddy-Daisy, Tennessee, is a distinctive area within Hamilton County. With a population of 29,430 residents, it has a relatively low rental rate at 17.5%, indicating that homeownership is prevalent among its inhabitants. The median income in this ZIP is $88,875, which suggests a middle-class community. Notably, the median home value is quite high at $359,732, reflecting a stable and possibly affluent neighborhood.

When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,130. This figure contrasts sharply with the actual market rent, as indicated by the ZORI (Zillow Observed Rent Index), which stands at $1,473. This discrepancy means that landlords accepting Section 8 vouchers in ZIP 37379 will receive less than the market rate for their properties. However, the difference between the FMR and ZORI does not necessarily indicate a lack of demand for subsidized housing; it simply highlights the economic realities of the area.

The data signature for ZIP 37379 reads as stable. The high median home value combined with a middle-class income level suggests that the local economy is solid, and there is little indication of significant transitions or changes in the near future. Homeownership is the dominant trend, with only 17.5% of residents renting, which further supports the stability of the area. While the lower FMR compared to the market rent might affect the attractiveness of Section 8 vouchers to some landlords, the overall economic indicators point to a consistent environment where investment can be made with confidence.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.