Section 8 Fair Market Rent (FMR) for ZIP 37861 - 2027

Location: Grainger County, TN | Metro: Grainger County, TN HUD Metro FMR Area

Investment Score for ZIP 37861

N/A

Monthly Rent (2BR)

$1,000

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$760
2 Bedrooms	$1,000
3 Bedrooms	$1,380
4 Bedrooms	$1,410
5 Bedrooms	$1,636
6 Bedrooms	$1,832
7 Bedrooms	$1,979
8 Bedrooms	$2,078

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,380	$355,429	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

8,608

Median Household Income

$52,265

Housing Units

4,438

Renter Percentage

19.6%

Occupancy Rate

78.6%

Renter Occupied

684

The ZIP code 37861, located in Tennessee, offers a stable market for both landlords and small-portfolio investors. The area has a mix of rental properties and homeowners, with a significant portion of the population relying on affordable housing solutions.

The Fair Market Rent (FMR) for the area is set at $860 per month for a one-bedroom unit in fiscal year 2024, providing a benchmark for rental pricing.
The market rent, according to Census ACS data, stands at $715 per month for a one-bedroom unit, indicating that there is room for slight price increases to align with the FMR.
The median home value in ZIP 37861 is $287,367, suggesting a moderate cost of living and investment potential for property purchases.
Renters make up 19.6% of the housing market, highlighting a substantial demand for rental properties.
The median income in the area is $52,265, which aligns with the rental prices and indicates that the majority can afford the current market rates.
Unfortunately, the data does not provide a specific number for days on market (DOM), but the other metrics suggest a balanced rental market.

Investors looking to enter the ZIP 37861 market should focus on properties that can be rented close to the FMR of $860, as this reflects the maximum payment assistance available through Section 8 vouchers. With a median home value of $287,367 and a median income of $52,265, the area supports a healthy balance between affordability and economic stability. Given the 19.6% renter share, there is a notable opportunity for those willing to invest in rental properties, especially those that qualify for Section 8 programs.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.