Location: Johnson County, TN | Metro: Johnson City, TN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37688 in fiscal year 2024 is set at $960. 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 necessarily the rent you will receive; it is the benchmark used by the Housing Choice Voucher program to ensure that rents are reasonable and affordable.
In comparison, the average rent for ZIP code 37688, according to the Census Bureau's American Community Survey (ACS), is $1,137. This indicates that the market rent is higher than the FMR, which means that landlords participating in Section 8 might receive less rent than they could in the open market. However, the stability of tenants and the government-backed payments can offset this difference.
The 14.1% share of renters in this area suggests a moderate level of demand for rental properties. While not a majority, this percentage still represents a significant portion of potential tenants who might benefit from Section 8 vouchers. This demand, combined with the lower FMR, can make Section 8 participation a strategic choice for landlords looking to fill vacancies and maintain steady income.
If you're considering acquiring a property for your first Section 8 rental, the median home value in ZIP code 37688 is approximately $241,702. This figure helps you assess the potential acquisition costs and weigh them against the long-term benefits of having a stable tenant through the Section 8 program.
Before making a final decision, verify that the property meets all the necessary requirements for Section 8 eligibility. This includes ensuring that the unit passes a housing quality standards (HQS) inspection, which checks for safety, health, and structural issues. Compliance with these standards is mandatory and failing to meet them can result in penalties or loss of tenancy.
In summary, while the FMR of $960 is lower than the local average rent of $1,137, the 14.1% renter share and the median home value of $241,702 suggest a viable opportunity for landlords and small-portfolio investors. The key is to confirm that the property complies with HQS standards to avoid any complications once you've committed to the investment.
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.