Location: Monroe 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 | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $337,560 | 0.39% | F |
U.S. Census Bureau data (2024)
290302 The median home value in ZIP code 37846 stands at $290,302, providing a solid base for investment opportunities. 771 The average market rent in the area is $771, which is significantly lower than the Fair Market Rent (FMR) set at $1050 for zip code 37846 in fiscal year 2024. This discrepancy suggests a potential for rental income growth above the current market rates. 219 In terms of the housing market dynamics, 21.9% of the residents are renters, indicating a sizeable demand for rental properties. 71786 With a median income of $71,786, tenants have a higher likelihood of being able to afford rents closer to the FMR, especially if they qualify for assistance programs. N/A The data does not provide the days on market (DOM) or the percentage of homes that had their prices cut, which could be indicative of a stable market where homes sell relatively quickly without significant price adjustments. N/A However, the lack of these metrics does not detract from the overall positive outlook given the other favorable indicators. 1050 Landlords and small-portfolio investors should consider the $1050 FMR as a benchmark for setting competitive and sustainable rental prices. 771 Given the current market rent of $771, there is room to increase rents while still remaining attractive to potential tenants. 290302 The median home value of $290,302 supports the notion that the area is economically sound and likely to see steady property appreciation over time.
A final consideration for investors interested in the Section 8 program is the alignment between the local market conditions and the federal guidelines. 771 The market rent of $771 is notably below the FMR, making it easier for landlords to participate in the Section 8 program without facing financial strain. 1050 At the same time, the $1050 FMR provides a reasonable ceiling for rental costs under the program, ensuring a fair return on investment.
Verdict: ZIP 37846 is a viable option for Section 8 investments, supported by favorable market rents and a robust median home value.
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.