Location: Cleveland, TN | Metro: Cleveland, TN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 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 |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP 37391 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 37391 in fiscal year 2024 is set at $1070, while the Census ACS data indicates a market rent of $481. This results in a gap of $589, representing a 122.45% difference between the two figures.
Given that the FMR exceeds the market rent, this situation makes ZIP 37391 a yield play for landlords and small-portfolio investors who accept housing vouchers. The higher FMR means that landlords can receive a payment closer to $1070 per month, which is substantially above the current market rate of $481. This scenario benefits investors looking to maximize their rental income without increasing their vacancy rates, as voucher holders provide a steady stream of tenants.
The demographic context of ZIP 37391 supports this analysis. With only 13.0% of the population being renters, the competition for rental units is relatively low, making it easier for voucher holders to secure housing. Additionally, the median home value in the area is $221,644, indicating a moderate cost of living, while the median income stands at $39,464, suggesting that many residents might struggle to afford market-rate rents without assistance. Thus, landlords who participate in the Section 8 program can capitalize on the government's willingness to cover a larger portion of the rent, effectively subsidizing the market rate.
In summary, the gap between FMR and market rent in ZIP 37391 presents an attractive opportunity for yield-focused investments. Landlords can benefit from higher rental payments while providing affordable housing options to those who need them most.
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.