Section 8 Fair Market Rent (FMR) for ZIP 37807 - 2027

Location: Knoxville, TN | Metro: Knoxville, TN HUD Metro FMR Area

Investment Score for ZIP 37807

Monthly Rent (2BR)

$1,130

Median Price (2BR)

$257,878

1% Rule

0.44%

Annual Yield

5.26%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$900
1 Bedroom	$900
2 Bedrooms	$1,130
3 Bedrooms	$1,410
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,130	$257,878	0.44%	F
3BR	$1,410	$313,051	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

11,069

Median Household Income

$62,673

Housing Units

4,905

Renter Percentage

25.7%

Occupancy Rate

86.2%

Renter Occupied

1,088

To determine if a landlord should buy in ZIP code 37807 (Maynardville, TN) for Section 8 purposes, follow this decision tree based on the provided data:

Step 1: The Fair Market Rent (FMR) for a property in Maynardville, TN for fiscal year 2024 is $1050. This figure must be sufficient to cover the debt service on a property valued at $287,270. If the monthly debt service is less than $1050, then the answer is Yes. If the debt service exceeds $1050, then the answer is No.

Step 2: Compare the market rent, which is $846 according to the Census ACS, with the FMR. If the market rent is above the FMR, then landlords should consider other areas where they can maximize their rental income. If the market rent is at or below the FMR, then proceed to Step 3.

Step 3: Evaluate the demand for rentals. In Maynardville, TN, 25.7% of residents are renters. However, the days on market (DOM) is listed as N/A, which means there is insufficient data to assess how quickly properties are rented out. Given the rental percentage alone, the demand is moderate. To make a final decision:

If you can secure a steady stream of Section 8 tenants and the debt service is covered by the FMR, then the answer is Yes. The rental percentage indicates a reasonable level of demand.
If the debt service is not covered by the FMR or you cannot secure Section 8 tenants reliably, then the answer is No. The financials do not support investment under these conditions.
If the debt service is marginally covered by the FMR and you're unsure about the reliability of securing Section 8 tenants, then the answer is It Depends. Additional research into local tenant availability and market trends is required to make an informed decision.

The key figures are as follows: FMR at $1050, market rent at $846, and a rental population of 25.7%. These numbers form the basis for your decision-making process regarding investment in Maynardville, TN for Section 8 properties.

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.