Location: Monroe County, TN | Metro: Cleveland, TN 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 | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $267,968 | 0.41% | F |
| 3BR | $1,430 | $324,575 | 0.44% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $920 for zip code 37385 in fiscal year 2024, landlords and small-portfolio investors can expect a clear benchmark for rental pricing in Tellico Plains, TN. This figure, set by the U.S. Department of Housing and Urban Development (HUD), surpasses the local market rent of $681 reported by the Census Bureau's American Community Survey (ACS), indicating a strong opportunity for rental income above market rates through Section 8 participation. The median home value stands at $250,742, reflecting a stable housing market where property values have remained consistent, making investment in residential real estate a solid choice.
Currently, 15.8% of the population are renters, suggesting a steady demand for rental properties. However, the median income of $60,472 highlights the financial challenges many residents face, making government-assisted housing programs such as Section 8 increasingly attractive. The absence of a day DOM (Days on Market) statistic suggests that homes in this area sell quickly once listed, reducing the risk of prolonged vacancy periods. Furthermore, the low price-cut share of 0.2% underscores the resilience of the local real estate market, where properties generally retain their asking price.
In summary, the zip code 37385 presents an environment where Section 8 properties can command rents above the local market average, driven by both the HUD's FMR and the economic realities faced by many residents. With a median home value of $250,742 and a median income of $60,472, the potential for successful Section 8 tenancy is high, given the substantial gap between the two figures. The quick sale times and minimal need for price reductions further support the viability of this investment strategy in Tellico Plains, TN. Verdict: Favorable for Section 8 participation.
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.