Location: Grainger County, TN | Metro: Knoxville, 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $381,360 | 0.41% | F |
U.S. Census Bureau data (2024)
In ZIP code 37709, there are several potential issues that could impact a landlord's decision to participate in the Section 8 program. First, tenant turnover is a significant concern. The market rent for the area stands at $967, which is notably below the Fair Market Rent (FMR) of $1050 set for FY 2024. This difference can lead to higher tenant mobility as participants might seek better rental deals outside the program. Second, vacancy exposure is another critical factor. While the Days on Market (DOM) for properties in the area is not available, the potential for vacancies is still a risk due to the limited demand for Section 8 rentals. High turnover rates can exacerbate this issue, leading to prolonged periods where units remain unoccupied.
Deferred maintenance is also a risk, especially considering the typical home value of $332,075 and the median income of $75,799. Landlords must be prepared to manage properties effectively to avoid costly repairs and maintenance issues that can arise from neglect. The financial burden of maintaining properties at this value while receiving a capped rental rate could be substantial, particularly if the property requires frequent upgrades or repairs.
However, these risks are somewhat offset by the high renter share in the area, which stands at 18.5%. A higher proportion of renters often translates into greater demand for housing vouchers, which can provide a steady stream of tenants willing to pay the FMR. This stability can be beneficial for landlords who are looking for consistent rental income.
Despite the potential challenges, the overall risk for a first-time Section 8 landlord in ZIP 37709 is moderate.
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.