Location: Scott County, TN | Metro: Morgan County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The market in ZIP code 37852 is characterized by a significant disparity between the Fair Market Rent (FMR) and the actual market rent. With an FMR set at $860 for fiscal year 2024, and the Census ACS reporting a market rent of $465, it's evident that there is considerable room for rental rate increases. This suggests that demand could be growing relative to supply, but the lack of specific data on price-cut shares and days on market (DOM) makes it challenging to definitively conclude whether supply is outpacing demand or vice versa.
The median home value in the area stands at $162,199, which indicates a relatively affordable market for homeownership. However, with only 12.4% of residents identified as renters, there is a strong inclination towards ownership. This low renter share can imply several things: first, it might suggest that the area has been historically attractive for buyers rather than renters, leading to a higher concentration of owner-occupied homes. Second, it could indicate that the area is experiencing or has experienced long-term housing pressures that have driven many residents to seek homeownership as a more stable alternative to renting.
The dynamics of this market are such that while rents are currently lower than the FMR, the potential exists for them to rise if the demand for rental properties increases. The low renter share also points to a community that values homeownership, which could mean that any increase in rental demand could quickly translate into increased competition for rental units, potentially pushing rents closer to the FMR level. Landlords and small-portfolio investors should closely monitor trends in both rental demand and the broader economic conditions affecting the area, as these factors will play a crucial role in determining the future trajectory of the market.
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.