Location: Morgan County, TN | Metro: Morgan County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 37845 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $960 per month for the fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the rental rates unique to the area.
Local market rents are currently unavailable, which makes it difficult to compare the SAFMR directly with what landlords might typically charge. However, the SAFMR serves as an important benchmark for the maximum amount the housing authority will pay towards a tenant's rent under the Section 8 program.
A voucher holder is required to contribute 30% of their adjusted income toward the rent. For example, if a tenant has an adjusted monthly income of $1,000, they would need to pay $300 towards the rent. The remaining $660 of the $960 SAFMR would be covered by the housing authority, provided that the total rent does not exceed the SAFMR limit.
In addition to the base rent, there are utility allowances. These allowances vary but generally cover costs such as electricity, gas, water, and sewer. If we assume a modest utility allowance of $150 per month, the total reimbursement by the housing authority would increase to $810 ($660 for rent + $150 for utilities).
This means that if you, as a landlord, charge $960 for a two-bedroom unit, the housing authority would cover $810, leaving a $150 reimbursement gap that the tenant must make up. Conversely, if your rent is below the SAFMR, say $850, then the housing authority would cover the full $850, and the tenant would still pay their 30%, resulting in a surplus for you as the landlord.
To summarize, in ZIP 37845, the typical reimbursement gap for a two-bedroom apartment at the SAFMR rate of $960 would be $150, assuming a utility allowance of $150. If your rent is lower than $960, you will receive the full amount from the housing authority plus the tenant's contribution, leading to a surplus.
Data Sources: FMR data from HUD (2027). 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.