Section 8 Fair Market Rent (FMR) for ZIP 37604 - 2027

Location: Johnson City, TN | Metro: Johnson City, TN MSA

Investment Score for ZIP 37604

Monthly Rent (2BR)

$1,370

Median Price (2BR)

$214,560

1% Rule

0.64%

Annual Yield

7.66%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,070
2 Bedrooms	$1,370
3 Bedrooms	$1,650
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,370	$214,560	0.64%	D
3BR	$1,650	$302,224	0.55%	F
4BR	$1,820	$443,592	0.41%	F
5BR	$2,111	$628,030	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

39,097

Median Household Income

$52,345

Housing Units

19,596

Renter Percentage

49.7%

Occupancy Rate

89.9%

Renter Occupied

8,765

Johnson City, TN, located in the heart of East Tennessee, is a vibrant city known for its rich history and strong community bonds. It serves as a hub for local businesses and offers a blend of urban amenities and natural beauty, making it an attractive location for both residents and investors.

The Fair Market Rent (FMR) for ZIP 37604 in fiscal year 2024 is set at $1,150, providing a benchmark for rental pricing that landlords should consider when setting their rates.
The market rent, as indicated by Zillow's ZORI index, stands at $1,428, reflecting the actual average rent paid by tenants in the area.
The median home value in Johnson City is $280,256, which is a critical figure for understanding the overall real estate market value.
Renters make up 49.7% of the housing market, indicating a nearly equal split between homeowners and renters, which can be favorable for landlords seeking steady demand.
The days on market (DOM) for properties in this ZIP code is 17 days, suggesting a relatively quick turnover rate for listings, which can be beneficial for those looking to sell or lease quickly.
The median household income in Johnson City is $52,345, providing insight into the financial capacity of potential tenants and buyers.

Johnson City presents a balanced real estate market with a significant portion of the population renting, which aligns well with the Fair Market Rent and market rent levels. The quick DOM indicates a robust demand for housing, while the median home value and income levels suggest a stable economic foundation. For landlords and small-portfolio investors, these factors collectively create a favorable environment for investment, ensuring a steady stream of tenants and reasonable property appreciation over time.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.