Location: Grundy 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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $266,926 | 0.46% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 37387 reveal a market where demand appears to be keeping pace with supply, if not slightly outpacing it. This inference is drawn from the snapshot of the current housing situation, which includes a Fair Market Rent (FMR) of $950 for the fiscal year 2024, a market rent of $405 according to the latest Census American Community Survey (ACS) data, and a low price-cut share of 0.2%. The median home value stands at $192,892, indicating a relatively affordable market for potential homeowners.
A key factor in understanding the long-term housing pressure is the 22.3% renter share. This figure suggests that nearly one-quarter of the households in 37387 are renters, which implies a continuous demand for rental properties. In markets with a higher proportion of renters, there tends to be an ongoing need for rental units, as renters typically do not have the option to purchase their homes, leading to sustained pressure on the rental market.
The FMR being significantly higher than the market rent ($950 vs. $405) could indicate that while the government benchmark is set higher, actual rents might be lower due to competition or other market factors. However, this gap also suggests that there could be opportunities for landlords to increase rents without losing tenants, given that the FMR represents the maximum amount that can be charged for subsidized housing units.
The low price-cut share of 0.2% is noteworthy. It suggests that property owners in this area are not frequently reducing their asking prices, which could imply that the market is stable and that properties are selling close to their original listing prices. This stability is further supported by the median home value, which has remained steady at $192,892.
In summary, ZIP 37387 presents a balanced market with a slight indication of demand possibly outpacing supply, particularly in the rental sector. Landlords and small-portfolio investors should consider the persistent rental demand and the potential for rental increases without significant risk, while also noting the stability in home values and the minimal need for price adjustments.
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.