Section 8 Fair Market Rent (FMR) for ZIP 37722 - 2027
Location: Sevier County, TN | Metro: Cocke County, TN
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $860 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$55,000
Housing Authorities Serving ZIP 37722
To determine if you should invest in ZIP code 37722 (Cosby, TN) for Section 8 properties, follow this decision tree based on the provided data:
Step 1: Debt Service Coverage Ratio (DSCR)
- If the Fair Market Rent (FMR) of $1,040 per month does not cover the debt service on a property valued at $271,824, then the answer is No. There would be insufficient rental income to meet financial obligations.
- If the FMR of $1,040 does cover the debt service, proceed to Step 2.
Step 2: Market Rent vs. FMR
- The market rent in Cosby, TN, according to the Census ACS, is $1,106 per month. This is above the FMR of $1,040.
- Since the market rent is higher than the FMR, it suggests that there is potential for earning more than the FMR in non-Section 8 rentals. However, this also means that Section 8 tenants might find it harder to afford the same housing outside the program, which could increase demand for Section 8 properties.
Step 3: Demand Analysis
- In Cosby, TN, 17.1% of the population are renters. The data does not provide days on the market (DOM), so we cannot assess how quickly properties are rented out.
- Given the percentage of renters, it indicates a moderate demand for rental properties. However, without knowing the DOM, it's unclear whether there is enough urgency in the market to ensure steady occupancy rates.
Conclusion
- Yes: If the FMR covers your debt service and you are comfortable with the moderate demand indicated by the renter percentage, investing in Section 8 properties in ZIP 37722 can be a viable strategy.
- No: If the FMR does not cover your debt service or you require high-demand areas with quick leasing, then this ZIP code may not be suitable for your investment goals.
- It Depends: The uncertainty around the days on the market makes it challenging to definitively assess the speed at which properties will be leased. Additional research into local real estate trends and vacancy rates is recommended to make a fully informed decision.
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.