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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $205,894 | 0.56% | F |
| 3BR | $1,410 | $307,575 | 0.46% | F |
| 4BR | $1,850 | $387,816 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 37814, located in Morristown, TN, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1050, while the market rent, as measured by ZORI, stands at $1324. This discrepancy amounts to a difference of $274, representing a 26.1% gap between what the government subsidizes and what landlords can charge in the open market.
In the context of Morristown, TN, where 33.5% of residents are renters, and the median home value is $284,051, the lower FMR poses a challenge for landlords. The median household income in the area is $55,650, which suggests that many potential tenants rely heavily on housing vouchers to afford living in the community. When FMR is below market rent, it means landlords must accept a subsidy rate that is less than the prevailing rental prices in the area. This can result in reduced cash flow compared to non-subsidized rentals, making it a less attractive option for some landlords.
However, for those who understand the dynamics of the local rental market, this scenario presents an opportunity. Landlords can leverage the stability provided by Section 8 tenants, who have their rent subsidized, ensuring consistent occupancy and timely payments. Despite the lower rental income, the overall cost of housing these tenants is offset by the guaranteed payment structure, which can be a reliable source of revenue in a market where rent volatility is common.
To summarize, the gap between FMR and market rent in Morristown, TN, is $274 or 26.1%. While this may initially seem disadvantageous, it can be managed effectively by understanding the local economic conditions and the benefits of long-term, stable tenancy provided by Section 8. This makes the ZIP code 37814 a strategic location for landlords looking to balance risk and reward in their investment portfolios.
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.