Location: Grainger County, TN | Metro: Grainger County, TN HUD Metro FMR Area
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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $319,749 | 0.43% | F |
U.S. Census Bureau data (2024)
In ZIP 37708, the economics of Section 8 housing can be straightforward when you understand how the payments are structured. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $860. This figure represents the maximum amount that the government will pay towards the rent of a two-bedroom unit in this specific area.
The local market rent, according to the Census ACS data, averages at $613 for a two-bedroom apartment. This means that landlords participating in the Section 8 program in ZIP 37708 can charge up to $860 for their units, which is higher than the average local market rent.
A landlord's actual reimbursement under a Section 8 voucher is determined by the tenant's contribution plus any utility allowances. Tenants typically contribute 30% of their adjusted income towards rent. If a tenant's adjusted income is $1,000 per month, they would contribute $300 towards the rent. Utility allowances vary but are generally around $100 to $200 per month, depending on the size of the unit and local energy costs.
Let's assume the utility allowance for a two-bedroom apartment in ZIP 37708 is $150. In this scenario, the total reimbursement a landlord would receive for a $860 two-bedroom apartment would be the sum of the tenant's contribution ($300) and the utility allowance ($150), making it $450 from the tenant and the government. Therefore, the landlord would receive $860 in total for the apartment.
To determine if there is a surplus or a gap, compare the total reimbursement to the local market rent. In ZIP 37708, the local market rent for a two-bedroom is $613. Since the total reimbursement of $860 exceeds the local market rent, there is a surplus. This surplus amounts to $247 per month, which is the difference between the SAFMR ($860) and the local market rent ($613).
Landlords in ZIP 37708 should be aware that while the SAFMR provides a higher ceiling for rent compared to the local market, the surplus is based on the average local market rent. Individual properties might command higher rents due to unique features or location, but the government payment will still be capped at the SAFMR. Thus, landlords must ensure that their property meets all necessary standards and that the rent charged does not exceed the $860 limit to avoid losing the subsidy.
Overall, the economics of Section 8 in ZIP 37708 offer landlords a chance to receive a higher rent payment than the local market average, resulting in a monthly surplus of $247 for a two-bedroom apartment.
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.