Location: Roane County, TN | Metro: Morgan 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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $192,293 | 0.54% | F |
| 3BR | $1,380 | $283,882 | 0.49% | F |
| 4BR | $1,650 | $346,963 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 37748 in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $237,667. According to the data, the average mortgage payment for a median-priced home in Harriman, TN, is approximately $1,090. This means that the FMR of $950 falls short by about $140 per month. However, it's important to note that this analysis does not consider other potential income sources such as co-tenants or additional rental properties. Furthermore, the actual cost of the mortgage can vary based on interest rates and down payments.
The second objection concerns the level of renter demand in Harriman, which stands at 24.7%. An investor might wonder if this percentage indicates sufficient tenant interest. The data suggests that while the rental market is not overwhelming, it still represents a significant portion of the housing stock. Additionally, the local job market and population growth trends can influence demand. For instance, if there are growing industries or an influx of new residents, the rental demand could increase. However, the provided data does not offer insights into these factors.
A final concern is whether Housing Choice Vouchers will keep up with the market rents, which average around $792. The data shows that the voucher amount is set to increase slightly but does not specify the exact figure. It is critical for landlords to monitor local HUD announcements for updates on voucher amounts. Historically, the voucher program has aimed to cover at least 30% of the area median gross rent. Given that the current FMR is higher than the market rent, it's likely that voucher holders can afford a unit at $792. Yet, the precise relationship between voucher increases and market rents requires closer attention to ensure financial viability.
In summary, while the FMR of $950 does not fully cover the mortgage on a $237,667 home, the rental market in Harriman, TN, is still robust enough to attract tenants at 24.7%. Moreover, Housing Choice Vouchers are expected to remain competitive with market rents, though investors should stay informed about any changes to the voucher program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.