Location: Hancock County, TN | Metro: Hancock County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 37765, Kyles Ford, TN, hinges on the disparity between the Fair Market Rent (FMR) of $940 for the fiscal year 2026 and the current market rent. Based on the latest data, the market rent for the area is not readily available, but we can infer from the demographic context that the FMR is significantly higher than the median income of $23,289. This implies that the FMR is likely above the market rent, creating a gap that benefits landlords who participate in the Section 8 program.
To quantify the gap, let's assume the market rent is at the median home value level, which is $170,518. However, this figure represents home values, not rental prices. A more accurate comparison would be with the median home value adjusted for rental prices. In ZIP 37765, 30.5% of residents are renters, indicating a significant portion of the population relies on rental housing. Given the lack of precise market rent data, we must rely on the FMR as a benchmark.
If the FMR is indeed higher than the market rent, it means that voucher tenants can pay more than what the open market demands. This makes ZIP 37765 a yield play for landlords. The higher payment from voucher tenants can lead to a better return on investment compared to renting at market rates. For instance, if the average market rent is estimated at $700 based on the median income and typical rent-to-income ratios, the $940 FMR would represent a 34.3% premium over the market rate.
This premium translates directly into increased cash flow and potentially higher profits for landlords. The disparity also underscores the financial strain many residents face, given the low median income relative to the FMR. Therefore, landlords should consider the advantages of participating in the Section 8 program, especially if they seek stable, government-backed rental payments that exceed the local market rates.
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.