Location: Roane 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 | $1,120 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $223,293 | 0.63% | D |
| 3BR | $1,770 | $331,161 | 0.53% | F |
| 4BR | $2,010 | $453,107 | 0.44% | F |
| 5BR | $2,332 | $589,012 | 0.4% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP code 37830, which encompasses Oak Ridge, Tennessee, several critical questions arise that any savvy landlord or small-portfolio investor must consider. The foremost concern is whether the Fair Market Rent (FMR) of $1090 for the fiscal year 2024 will sufficiently cover the mortgage on a property valued at $324,000. To address this, let's break down the financials. A typical mortgage rate for a 30-year fixed loan might hover around 5%. On a $324,000 home, this translates to an approximate monthly mortgage payment of $1,700. Given the FMR, it's clear that the rent alone would not cover the mortgage payment, leaving a shortfall of approximately $610 per month. This gap underscores the necessity for landlords to factor in additional income sources or potential rental increases over time.
The second objection relates to the renter demand in the area, measured at 33.9%. While this percentage indicates a moderate level of demand, it does not guarantee a steady stream of tenants. However, Oak Ridge benefits from its proximity to the Oak Ridge National Laboratory and its relatively stable population base, which can help sustain a consistent demand for rental properties. The key here lies in understanding the local job market and demographic trends. If employment remains robust, particularly in sectors like research and technology, the rental demand should hold steady. Yet, without specific data on job growth or tenant turnover rates, it's challenging to provide a definitive answer on the sufficiency of the 33.9% demand figure.
A final critical point is whether Housing Choice Vouchers will keep pace with the market rent of $1,707. Currently, the voucher amount in ZIP 37830 is set at $1090, significantly lower than the market rent. This discrepancy means that voucher holders may struggle to find housing that meets their needs within the parameters of the voucher program. Landlords who rely solely on voucher recipients for tenancy will likely face challenges in covering their mortgage and operational costs. However, the federal government periodically adjusts voucher amounts to better align with market conditions, suggesting that there could be future adjustments to alleviate this disparity. Until such changes occur, landlords should be prepared for the possibility of lower occupancy rates among voucher holders.
In summary, while ZIP 37830 presents opportunities for investment, it also comes with significant financial hurdles. The FMR does not cover the mortgage on a $324,000 home, indicating a need for careful budgeting. The renter demand, though moderate, requires further analysis to ensure sustainability. Lastly, the current voucher amount is insufficient to meet market rents, necessitating vigilance regarding future policy changes. These insights provide a balanced view of the investment landscape in Oak Ridge, TN, highlighting both the potential and the risks involved.
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.