Location: Johnson City, TN | Metro: Johnson City, TN 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $267,161 | 0.47% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37658 in fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; it's the payment standard used by the Housing Choice Voucher Program to determine the subsidy amount.
To put this into perspective, the average rent in ZIP 37658, based on Census American Community Survey data, is $677. This suggests that the FMR is higher than the typical market rate, which could be advantageous for landlords participating in Section 8. The difference between the FMR and the average local rent indicates a potential buffer against the costs associated with maintaining and managing a rental property.
The renter share in this area is 25.5%, meaning that over a quarter of households are renters. This provides a solid indication of demand for rental properties, particularly those that offer affordable housing options like Section 8. With a significant portion of the population looking for rental homes, there is a good chance of finding tenants who qualify for the program.
If you're considering purchasing a property to become a Section 8 landlord, the median home value in ZIP 37658 is around $206,425. This figure can help you assess whether the potential income from Section 8 vouchers would cover your investment and ongoing expenses. Remember, the FMR is designed to ensure that the rent is affordable for low-income families, so it might not fully cover the mortgage and other costs if they exceed the FMR.
Before proceeding with your first Section 8 rental in ZIP 37658, you should verify that the property meets all the required standards for habitability and safety. These standards are set by the Housing Quality Standards (HQS) and include items such as ensuring the plumbing works properly, the electrical system is up to code, and the overall condition of the house is satisfactory. Compliance with these standards is mandatory and failure to meet them can result in the loss of your Section 8 contract.
In conclusion, the FMR of $860 in ZIP 37658 offers a clear benchmark for landlords interested in the Section 8 program. Given the local average rent of $677 and a substantial renter share of 25.5%, there is a strong case for demand. However, the acquisition cost of approximately $206,425 must be considered alongside the potential income to ensure financial viability. Ensuring your property meets HQS requirements is crucial before signing any contracts.
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.