Location: Scott County, TN | Metro: Scott County, TN
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 | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $252,845 | 0.52% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 37841 stands at $50,998, which contrasts sharply with the market rate for rent at $654 per month based on Census ACS data. This suggests that the average household may struggle to meet the rental costs without financial strain. To put this into perspective, the Fair Market Rent (FMR) set at $980 for the metro area in fiscal year 2026 far exceeds the actual market rate, indicating a significant gap between what the government considers affordable and the current market conditions.
In ZIP 37841, where 29.2% of the 10,199 residents are renters, the affordability gap means that landlords face stiff competition when it comes to attracting tenants who can pay the full market rate. Many potential renters might be looking for assistance through housing vouchers to manage their living expenses effectively.
Landlords in ZIP 37841 must consider the dynamics of voucher versus cash-pay strategies carefully. Given that the FMR is significantly higher than the market rate, landlords should be aware that accepting vouchers could offer a stable income source, though it would be lower than the FMR at $980. On the other hand, relying solely on cash-paying tenants may limit the pool of available renters, especially if they expect to charge close to or above the $654 market rate.
The takeaway for landlords is that diversifying their tenant mix to include both voucher recipients and cash-paying renters can provide a balanced approach. Accepting vouchers can help secure long-term, stable tenancy while also allowing landlords to cater to those who can afford the higher market rates, ensuring a competitive edge in the local rental market.
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.