Location: Cocke County, 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 | $800 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $194,828 | 0.53% | F |
| 3BR | $1,330 | $272,733 | 0.49% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $960 for ZIP 37821 in Newport, TN, for fiscal year 2024, landlords can align their rental pricing strategies accordingly. The Census American Community Survey reports a market rent of $805, indicating a potential premium for properties that meet higher standards or offer additional amenities. At a median home value of $226,028, Newport presents an attractive investment opportunity for those looking to enter the real estate market without the prohibitive costs seen in larger metropolitan areas.
Given that 29.9% of residents are renters, there is a significant demand for rental properties, which can be leveraged by savvy investors. However, the median income of $44,161 suggests that many tenants may seek affordable housing options, making Section 8 vouchers a viable tenant acquisition strategy. The data does not provide a specific figure for days on market (DOM), but the low price-cut share of 0.2% implies that properties in Newport generally sell at or near their asking price, suggesting strong market confidence and stability.
Investors should note that while the FMR is set at $960, the actual market rent is lower at $805, indicating a competitive landscape where pricing must reflect both quality and affordability. The median home value of $226,028 offers a balance between investment cost and potential returns, especially considering the relatively high renter share of 29.9%. With a median income of $44,161, it's reasonable to expect that a portion of these renters will qualify for Section 8 assistance, providing a steady stream of income for landlords willing to participate in the program.
The lack of data on days on market and the minimal price-cut share further reinforce the idea that Newport is a stable market, likely to reward long-term investments. For landlords and small-portfolio investors, Newport's combination of a manageable median home value, a competitive market rent, and a significant renter population makes it a prime location for Section 8 participation. In conclusion, given the favorable economic indicators and the presence of a substantial rental market, Newport, TN, is a good choice for Section 8 properties.
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.