Location: Cocke County, TN | Metro: Cocke County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis for ZIP 37727 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which is crucial for landlords and small-portfolio investors. The FMR for Section 8 housing in the metro area for fiscal year 2026 is $930, while the Census ACS reports the average market rent at $639. This creates a gap of $291, or approximately 45.6%, between what the government deems as fair market rent and what the local market is currently charging.
If the FMR exceeds the market rent, as it does here, it suggests that voucher tenants can afford higher rents than those charged by the local market. This makes ZIP 37727 a yield play, where landlords can potentially increase their rental income by accepting Section 8 tenants without significantly raising the rent above market levels. Given that only 16.5% of residents are renters and the median home value is $265,228, there is less competition for rental units, allowing landlords to benefit from the higher FMR payments.
However, the median income in ZIP 37727 is $47,652, which may influence the ability of voucher holders to contribute to the rent. Despite this, the FMR subsidy covers a substantial portion of the rent, making it financially viable for landlords to accept Section 8 tenants even if they cannot charge the full FMR. This scenario presents a unique opportunity to stabilize rental income and attract a steady stream of tenants.
To summarize, the gap between FMR and market rent in ZIP 37727 indicates a favorable environment for landlords who wish to participate in the Section 8 program. By leveraging the higher FMR payments, landlords can achieve better yields without pricing out potential tenants. The local context supports this strategy, with a low percentage of renters and a relatively high median home value.
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.