Location: Knoxville, 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 | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $243,061 | 0.53% | F |
| 3BR | $1,600 | $351,778 | 0.45% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 37754, Heiskell, TN, is set at $1200 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, which is designed to help low-income families afford housing. It's important to note that this $1200 is not necessarily the amount you will receive as rent; it is the payment standard used by the Housing Choice Voucher program.
To put this into context, the average rent in Heiskell, TN, based on Census ACS data, is $944. This means that the Section 8 payment standard is higher than the typical market rent, providing an opportunity for landlords to potentially earn more than they might from other tenants.
The 20.7% of residents who are renters indicates a moderate demand for rental properties in Heiskell. While this percentage isn't exceptionally high, it does suggest there is a steady pool of potential tenants looking for affordable housing. This could be particularly beneficial if you're entering the Section 8 market, as it helps ensure a consistent occupancy rate.
If you're looking to acquire a property in Heiskell for your first Section 8 rental, the median home value is approximately $329,066. This figure should be considered when evaluating the total investment required to enter the market, including any necessary renovations to meet the program's requirements.
Before committing to a Section 8 rental property, verify that the property meets all the necessary criteria for the Housing Choice Voucher program. This includes ensuring the unit passes a housing quality standards (HQS) inspection, which checks for safety, habitability, and other basic living conditions. Failure to meet these standards could result in reduced payments or even disqualification from the program.
In summary, the $1200 FMR offers a competitive advantage over the local average rent of $944, supported by a reasonable renter population share of 20.7%. With a median home value of $329,066, the investment can be substantial but is justified by the stability and income guarantees of the Section 8 program. Just remember to confirm that your property meets all HQS requirements to avoid future complications.
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.