Location: Cumberland County, TN | Metro: Morgan County, 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 | $850 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $180,967 | 0.58% | F |
| 3BR | $1,400 | $272,053 | 0.51% | F |
| 4BR | $1,530 | $373,130 | 0.41% | F |
U.S. Census Bureau data (2024)
In ZIP code 37854 in Rockwood, TN, landlords considering Section 8 investments must first acknowledge several potential challenges. Tenant turnover is a significant risk due to the disparity between the market rent of $814 and the Fair Market Rent (FMR) of $920 for fiscal year 2024. This difference suggests that tenants may struggle to afford the FMR, leading to higher turnover rates as they seek more affordable housing options.
Vacancy exposure is another concern, particularly since the average days on market (DOM) for rental properties is not available. This lack of data makes it difficult to predict how long a property might remain vacant between tenancies. High vacancy periods can lead to financial strain on landlords, especially when they rely on consistent rental income.
The deferred maintenance exposure is substantial, considering the typical home value of $229,318 and the median income of $55,856. Landlords may find themselves responsible for significant repairs and maintenance costs, which can be challenging to manage without a robust financial cushion. The lower median income indicates that tenants may have limited resources to contribute towards such expenses, placing the burden squarely on the landlord.
However, these risks are tempered by the high renter share of 30.7%. A large percentage of renters often correlates with higher demand for Section 8 vouchers, providing a steady stream of qualified tenants. This demand helps mitigate some of the financial risks associated with vacancy and turnover, ensuring a more stable rental income over time.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 37854.
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.