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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $283,803 | 0.49% | F |
| 4BR | $1,480 | $365,922 | 0.4% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 37840 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1050 cover the mortgage on a $243,763 home?
The Fair Market Rent (FMR) of $1050 for ZIP 37840 in fiscal year 2024 does not directly indicate whether it will cover the mortgage on a $243,763 home. To determine if the FMR can sufficiently cover the mortgage, we need to consider the interest rate and loan term. Assuming a typical 30-year fixed-rate mortgage at an average interest rate, the monthly mortgage payment for a $243,763 home could range widely depending on the interest rate. For instance, at a 4% interest rate, the monthly mortgage payment would be approximately $1150. This exceeds the FMR by $100 per month. However, property taxes, insurance, and maintenance costs must also be factored into the total expenses. The investor should ensure that the FMR, combined with other potential sources of income, can cover these additional costs.
Objection 2: Is there enough renter demand at 20.5%?
The 20.5% renter occupancy rate in ZIP 37840 suggests that slightly less than one-fifth of the housing units are rented out. While this percentage may seem low, it does not necessarily reflect a lack of demand. It's important to understand the context of the area. If the population is relatively stable and the number of renters has been consistent over time, the demand for rental properties could still be strong. However, the data alone does not provide insight into the competition for rental properties or the willingness of potential tenants to pay the FMR. A thorough analysis of local rental trends and vacancy rates would be necessary to fully assess the demand.
Objection 3: Will vouchers keep pace with $682 market rents?
The market rent of $682 is notably lower than the FMR of $1050, indicating that voucher holders may find it easier to afford housing in ZIP 37840 compared to the broader rental market. However, the concern remains whether the voucher amounts will continue to match the rising market rents. The data provided does not offer projections for future voucher amounts or any historical trend of how well vouchers have kept up with market rent increases. Therefore, while the current situation appears favorable for voucher holders, long-term sustainability requires monitoring government funding and policy changes affecting voucher programs.
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.