Location: Campbell County, TN | Metro: Campbell 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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $181,831 | 0.56% | F |
| 3BR | $1,320 | $263,414 | 0.5% | F |
| 4BR | $1,330 | $524,295 | 0.25% | F |
| 5BR | $1,543 | $958,461 | 0.16% | F |
U.S. Census Bureau data (2024)
ZIP code 37766, located in Lafollette, Tennessee, stands out due to its unique demographic and economic characteristics. With a population of 18,554 residents, 37.1% of whom rent their homes, Lafollette has a median income of $50,063 and a median home value of $230,736. These figures indicate a community that is moderately priced, with a significant portion of residents choosing to rent rather than own property.
The voucher economics in Lafollette present an interesting opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for ZIP 37766 in fiscal year 2024 is set at $930, while the market rent based on Census ACS data is $756. This discrepancy suggests that landlords participating in the Section 8 program can expect higher rental income compared to the local market rate. The difference between the FMR and market rent is a positive indicator for those looking to invest in rental properties within this ZIP code, as it ensures a steady stream of income that is above the typical market rate.
Evaluating the overall data signature, ZIP 37766 appears to be a stable area. The relatively high percentage of renters combined with the median income levels and home values suggest a balanced housing market. The gap between the FMR and market rent further supports the stability, as it indicates that the government's estimate of fair rent is calibrated to ensure affordability without undervaluing the rental market. This balance is particularly attractive for investors who seek consistent returns without the volatility often associated with transitional markets.
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.