Location: Sevier County, TN | Metro: Sevier County, TN
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 | $980 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $399,240 | 0.25% | F |
| 2BR | $1,150 | $447,146 | 0.26% | F |
| 3BR | $1,490 | $493,477 | 0.3% | F |
| 4BR | $1,510 | $778,260 | 0.19% | F |
| 5BR | $1,752 | $1,310,007 | 0.13% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1,120 for ZIP 37862 in Pigeon Forge, TN, landlords should set their rental prices strategically to attract tenants while ensuring profitability. The Zillow Observed Rent Index (ZORI) stands at $1,749, indicating that market rents are significantly higher than the FMR, which is beneficial for property owners looking to maximize their returns. However, the median home value of $448,896 suggests that the area is not solely composed of rental properties but also includes a substantial number of owner-occupied homes. This balance is further evidenced by the fact that only 38.8% of the population are renters, leaving a significant portion of the market untapped by landlords.
The median income of $59,792 in the region highlights a potential challenge for landlords seeking to attract tenants who can afford the higher market rents. While the median income is not exceptionally high, it is still above the national average, providing some assurance that there is a stable tenant base capable of paying rents close to the ZORI. The Days on Market (DOM) of 69 days indicates that properties take about two months to sell, which is relatively quick compared to other markets. This short DOM period is indicative of a robust real estate market where demand outpaces supply, making it an attractive area for investment.
Moreover, the price-cut share of 0.3% shows that very few sellers are forced to reduce their asking prices, suggesting strong pricing power for both buyers and sellers. This low percentage of price cuts also reflects a competitive market where properties are valued accurately from the outset. Given these figures, landlords and small-portfolio investors can confidently expect solid performance from their investments in Pigeon Forge, TN.
Based on the data, the verdict for Section 8 participation in ZIP 37862 is positive. With a median income of $59,792 and a significant gap between the FMR and ZORI, landlords can leverage Section 8 to fill units that might otherwise remain vacant due to affordability concerns, thereby stabilizing occupancy rates and maintaining cash flow.
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.