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 | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $195,173 | 0.51% | F |
| 3BR | $1,240 | $273,357 | 0.45% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 37397, Whitwell, TN, is set at $1020 for fiscal year 2024. This figure represents the payment standard for Section 8 housing assistance in your area, meaning it's the maximum amount that the Housing Choice Voucher program will pay toward a tenant's rent. It does not represent the total rent you can charge; rather, it's the benchmark used to calculate the subsidy.
To put this into perspective, the average rent for the area, according to the Census Bureau's American Community Survey (ACS), is $807. This indicates that the FMR is higher than the typical market rate, which could be advantageous if you're looking to participate in the Section 8 program. The difference between the FMR and the average rent suggests that there might be some room to negotiate higher rents with voucher holders, but remember, the actual rent charged cannot exceed the FMR.
The 20.3% renter share in Whitwell points to a moderate demand for rental properties. While it's not a high percentage, it still represents a significant portion of the population who rely on renting as their primary form of housing. This demand can translate into a steady stream of potential tenants, particularly those seeking Section 8 vouchers.
If you're considering purchasing a property for a Section 8 rental, the median home value in the area is around $227,264. This figure can help you estimate the initial investment required for acquiring a property suitable for Section 8 tenancy. Keep in mind that the actual price can vary based on the condition and size of the property, but it gives you a good starting point for budgeting.
Before you decide to move forward, it's crucial to verify that the property meets all the necessary Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Failure to meet these criteria can result in disqualification from the Section 8 program, so it's important to inspect and possibly upgrade the property to comply with HQS requirements.
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.