Location: Greene County, TN | Metro: Greene County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase a property in ZIP code 37809 for Section 8 investment begins with the Fair Market Rent (FMR) and its ability to cover debt service. The FMR for the metro area in fiscal year 2026 is $980.
1) Does FMR $980 clear debt service on a $206,643 property?
Yes: At $980 per month, the FMR can support a mortgage payment on a $206,643 property, assuming typical financing terms. This means the rent collected would be sufficient to cover the monthly mortgage payments, taxes, insurance, and maintenance costs. Proceed to the next question.
No: If the FMR cannot cover the debt service, purchasing a property for Section 8 in ZIP 37809 would not be financially viable. Do not invest in this ZIP code for Section 8 purposes.
2) Is market rent $825 (Census ACS) above, at, or below FMR?
Above: If the market rent exceeds the FMR, landlords could potentially earn more than the guaranteed FMR by renting to non-Section 8 tenants. However, for strict Section 8 investments, the key metric remains the FMR. Continue to the next question.
At or Below: If the market rent is at or below the FMR, the property's value is aligned closely with Section 8 parameters. This alignment ensures that the property can be rented out under the program without leaving significant financial gaps. Move to the final question.
3) Are 50.0% renters + N/A-day days on market (DOM) enough demand?
It Depends: With 50.0% of residents being renters, there is a substantial rental market in ZIP 37809. However, the lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are leased. If the rental vacancy rate is low and demand is high, this ZIP code can support Section 8 investments. Conversely, if the vacancy rate is high or there are signs of economic downturn, the investment might not be as attractive. Consider local economic trends and the stability of the tenant pool before making a final decision.
To summarize, if the FMR of $980 clears the debt service on a $206,643 property and the market rent is at or below this amount, the investment is feasible. The presence of a 50.0% rental population suggests strong demand, but the absence of DOM data requires additional research into local rental market conditions. Local economic health and tenant stability will ultimately guide the decision on whether to invest in ZIP 37809 for Section 8 purposes.
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.