Location: Claiborne County, TN | Metro: Knoxville, 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 | $760 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $296,338 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 37825 operate under specific parameters that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1050. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a unit in this specific ZIP code. However, it's important to understand how this interacts with the actual local market conditions.
The local market rent for a two-bedroom apartment in ZIP 37825, according to the Census ACS, is currently $703. This is the average rent price that tenants might expect to pay without a voucher. When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent, typically around 30% of their income, which covers utilities as well. The remainder is then subsidized by the government up to the SAFMR limit.
To walk through an example, let's assume a tenant has an income that requires them to pay $300 towards the rent and utilities. In this scenario, the government would cover the difference between the tenant's contribution and the SAFMR, but not exceed the SAFMR cap. Thus, the government would pay $750 towards the rent, making the total payment to the landlord $1050.
If the market rent is below the SAFMR, such as the $703 observed in ZIP 37825, the landlord receives the market rent plus the government subsidy. Therefore, if the market rent is $703 and the tenant contributes $300, the landlord would receive a total of $1003. This leaves a surplus for the landlord, as the total exceeds the market rent by $300.
However, if the market rent were higher than the SAFMR, say $1200, the landlord would only receive $1050 from the combined tenant contribution and government subsidy. This would result in a shortfall for the landlord, who would need to consider this when setting rents for units participating in the Section 8 program.
In ZIP 37825, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus of $300. This means landlords can expect to receive more than the local market rent, providing a financial incentive to participate in the Section 8 program despite the administrative requirements.
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.