Location: Johnson County, 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 | $930 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $229,589 | 0.44% | F |
| 3BR | $1,350 | $295,530 | 0.46% | F |
| 4BR | $1,400 | $389,880 | 0.36% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37683, which includes Mountain City, TN, is set at $960 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit, based on the payment standard established by the U.S. Department of Housing and Urban Development (HUD). It's important to note that this is not the actual rent you will receive; it is the benchmark against which rents are compared.
In contrast, the average rent for the area, according to the Census Bureau's American Community Survey (ACS), is $671. This indicates that the FMR for Section 8 is significantly higher than the typical market rent, providing an incentive for landlords to participate in the program.
The FMR also helps gauge the demand for rentals in the area. With 23.1% of residents being renters, there is a notable portion of the population who might be interested in Section 8 housing. This percentage suggests a steady pool of potential tenants looking for affordable housing options.
When considering the acquisition cost of a property in Mountain City, TN, it's useful to know that the median home value is approximately $240,976. This gives you an idea of the investment required to purchase a property suitable for a Section 8 rental. While the FMR is higher than the average market rent, it still needs to be evaluated against your total costs, including mortgage payments, maintenance, and other expenses.
Before making the decision to enroll a property in the Section 8 program, it is crucial to verify that your property meets HUD's minimum property standards. These standards ensure that the rental unit is safe, decent, and sanitary for tenants. A thorough inspection by a qualified professional can help you determine if your property is ready for Section 8 tenancy without requiring costly renovations.
To summarize, the FMR of $960 is the ceiling for rent in the Section 8 program, which is higher than the local average of $671. With a 23.1% renter share, there is a significant demand for rental properties. The median home value of $240,976 provides insight into the acquisition cost. However, landlords must ensure their property meets HUD's minimum standards before participating in the program.
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.