Location: Morristown, TN | Metro: Morristown, 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 | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $215,264 | 0.53% | F |
| 3BR | $1,400 | $324,484 | 0.43% | F |
| 4BR | $1,830 | $357,263 | 0.51% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP 37760, which encompasses Jefferson City, Tennessee, presents an interesting scenario when viewed from the renter’s perspective. The median household income stands at $66,190, while the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,152 per month. This places a significant financial burden on renters, especially considering that nearly 35.9% of the population are renters.
To put this into context, let’s examine how these figures stack up against the federal guidelines. The Fair Market Rent (FMR) for the area, as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024, is $980. This means that the market rate exceeds the HUD standard by $172, or approximately 17.5%. For households earning the median income, paying the market rate would consume roughly 20.4% of their monthly income, which is calculated by taking the annual income ($66,190) and dividing it by 12 months, then comparing it to the monthly rent cost.
The affordability gap between the market rate and the HUD standard has several implications for landlords. With a total population of 13,253, and over one-third of that being renters, there is a notable demand for housing. However, the disparity between what renters can afford and what the market demands suggests a competitive landscape for landlords who rely solely on market-rate rents. Many potential tenants might find it challenging to pay the $1,152 without assistance, making them more inclined towards units that accept vouchers.
The takeaway for landlords is clear: accepting vouchers can be a strategic move to fill vacancies and stabilize cash flow. While the voucher payment standard is lower at $980, it ensures a steady stream of income and reduces the risk of unpaid rent. Landlords should consider the balance between higher market rates and the security of voucher payments, particularly given the economic realities faced by many renters in Jefferson City. By offering both options, landlords can cater to a broader spectrum of tenants and maintain occupancy levels.
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.