Location: Moore County, TN | Metro: Bedford County, TN
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 | $850 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $190,910 | 0.57% | F |
| 3BR | $1,440 | $298,275 | 0.48% | F |
| 4BR | $1,510 | $430,310 | 0.35% | F |
| 5BR | $1,752 | $524,872 | 0.33% | F |
U.S. Census Bureau data (2024)
Tullahoma, TN, located in ZIP code 37388, stands out among other areas due to its unique demographic and economic characteristics. With a population of 27,939 residents, Tullahoma has a rental rate of 31.6%, which is slightly above the national average. The median income here is $59,537, indicating a middle-class community. However, the median home value of $295,812 is notably higher than the median income, suggesting that homeownership might be less accessible compared to other regions.
The economics of Section 8 vouchers in Tullahoma are particularly interesting. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $960. This figure is significantly lower than the Zillow Rent Index (ZORI), which stands at $1,474. This discrepancy means that landlords who accept Section 8 vouchers can expect to receive a lower rent payment than the market rate, but it also indicates that there is a substantial gap between government-subsidized housing and private rentals. Landlords should consider the long-term stability and reliability of voucher payments when deciding whether to participate in the program.
Evaluating the overall data signature of ZIP code 37388, it appears to be stable rather than transitional. The relatively high median home value and the moderate rental percentage suggest a balanced real estate market where both homeowners and renters coexist. While the voucher economics present a challenge, they also offer an opportunity for landlords to serve a segment of the population that might otherwise struggle to find affordable housing.
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.