Location: Hancock County, TN | Metro: Claiborne County, TN
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 | $820 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $256,775 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 37752 is built around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,010, while the Census ACS reports the average market rent at $749. This means there is a $261 difference, or a 34.85% gap, between what landlords can charge under the Section 8 program and the prevailing market rate.
Given that the FMR exceeds the market rent, it presents a unique opportunity for landlords and small-portfolio investors. Voucher tenants, who pay only a portion of their rent directly, effectively fill this gap with government subsidies. The result is a yield play where landlords can potentially earn above-average returns by renting to voucher holders. This is especially attractive in ZIP 37752, where 35.5% of residents are renters and the median home value is $234,375. These figures suggest a substantial demand for rental properties, particularly among those with lower incomes—$60,028 being the median income in the area.
The higher FMR compared to the market rent also implies that landlords might face challenges in attracting non-voucher tenants willing to pay the higher Section 8 rates. However, the influx of voucher tenants can mitigate this issue, ensuring steady occupancy and a reliable income stream. Moreover, the financial support provided by the government through the voucher system can cover the difference, making the investment in Section 8 properties a sound strategy for those looking to capitalize on this gap.
In conclusion, the disparity between the FMR and the market rent in ZIP 37752 offers a compelling reason for landlords to consider participating in the Section 8 program. The subsidy structure allows for a higher rental income than the open-market rate, turning this gap into an advantage. With over a third of the population renting and a median income that aligns well with the assistance provided by vouchers, the potential for a successful and profitable venture is clear.
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.