Section 8 Fair Market Rent (FMR) for ZIP 37601 - 2027
Location: Johnson City, TN | Metro: Johnson City, TN MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$50,686
Housing Authorities Serving ZIP 37601
A skeptical investor considering Johnson City, TN (ZIP 37601), might raise several concerns regarding the feasibility of investing in this area. Let's address these objections with the available data.
- Will FMR $1100 (zip FY 2024) cover the mortgage on a $262,927 home?: According to recent housing market data, the median home value in ZIP 37601 is $262,927. To determine if the Fair Market Rent (FMR) of $1100 can cover the mortgage, we need to consider current mortgage rates. While the exact mortgage rate varies, assuming a typical rate of around 5%, the monthly mortgage payment for a $262,927 home would be approximately $1,375. This means that the FMR alone will not fully cover the mortgage payment, leaving a shortfall of about $275 per month. However, this calculation does not include potential tax benefits or appreciation in home values, which could offset the initial financial burden.
- Is there enough renter demand at 44.1%?: In ZIP 37601, 44.06% of the housing stock is rented, slightly higher than the national average. This indicates a reasonable level of renter demand. Furthermore, the vacancy rate in this ZIP code is 7.33%, significantly lower than the national average, suggesting that rental properties are generally well-occupied. The low vacancy rate and above-average rental percentage point to a stable rental market, which should support steady demand for rental units.
- Will vouchers keep pace with $1,265 market rents?: The FMR in ZIP 37601 is set at $1100 for FY 2024. If the market rents are $1,265, this implies that landlords relying solely on voucher programs might face challenges covering their costs. However, it's important to note that voucher amounts can vary based on individual circumstances and the availability of funds. Additionally, the rental market's stability and relatively high occupancy rates suggest that landlords have the flexibility to seek non-voucher tenants willing to pay market rates.
The data indicates that while there are some financial challenges, such as the gap between FMR and mortgage payments, the rental market in ZIP 37601 is robust enough to sustain investment opportunities. The slightly higher-than-national rental percentage and lower vacancy rate provide evidence of strong tenant demand, making it a viable option for landlords and small-portfolio investors.
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.