Location: Scott County, TN | Metro: Campbell County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 37847 operate under specific guidelines that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $860 per month for the fiscal year 2024. This SAFMR figure is specifically tailored to reflect the rental market conditions of ZIP 37847, ensuring that the rate is set for this particular area.
A Section 8 voucher works by covering a portion of the rent for eligible tenants, while they are responsible for paying the remainder. The voucher payment is calculated based on the SAFMR and the tenant's ability to pay, which is typically around 30% of their income. For instance, if a tenant's income is $1,000 per month, they would be expected to contribute $300 towards rent, leaving the remaining $560 to be covered by the voucher program.
In addition to the base rent, the voucher also includes utility allowances. These allowances are designed to help cover the cost of utilities such as electricity, gas, water, and sewage. However, the exact amount of these allowances can vary and is determined by the local housing authority. It is important for landlords to factor these utility allowances into their overall financial planning when accepting Section 8 vouchers.
To illustrate, if the utility allowance for an apartment in ZIP 37847 is $150 per month, the total reimbursement from the voucher program would be $860 (rent) + $150 (utilities) = $1,010. If the tenant contributes $300, the landlord receives a total of $1,010 per month. This amount is fixed and does not fluctuate with changes in the local market rent, which is currently not available for ZIP 37847.
Given that the SAFMR is $860, landlords should be aware that there may be a reimbursement gap if the local market rent exceeds this amount. Conversely, if the market rent is below the SAFMR, landlords could see a surplus. In ZIP 37847, due to the lack of specific market rent data, it is unclear whether landlords will face a gap or enjoy a surplus. However, landlords should prepare for potential discrepancies between the voucher reimbursement and the actual market value of their properties.
In conclusion, the typical reimbursement for a two-bedroom voucher in ZIP 37847 is $860 for rent plus any applicable utility allowances, totaling $1,010 in this example. The exact reimbursement gap or surplus cannot be definitively stated without current market rent data, but landlords should be mindful of this potential discrepancy.
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.