Location: Sevier County, TN | Metro: Sevier County, TN
| 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 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 37863 (Pigeon Forge, TN) for Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1,050 cover the debt service on a property valued at $421,775?
No: The FMR does not clear the debt service on a property valued at $421,775. A typical mortgage payment for such a property would exceed $1,050, making it unprofitable to rely solely on Section 8 vouchers.
Yes: Proceed to Step 2.
Step 2: Is the market rent of $1,039 above, at, or below the FMR?
Above: The market rent is slightly below the FMR, indicating that while Section 8 tenants can pay up to $1,050, other tenants might be willing to pay less. This could affect your ability to fill vacancies without relying on Section 8.
At or Below: Proceed to Step 3.
Step 3: Are 52.7% of residents renters and is the number of days on the market (DOM) sufficient to ensure demand?
Yes: With over half of the residents being renters and assuming a reasonable DOM, there is likely enough demand for rental properties. However, the exact number of days on the market is not available, which is critical for assessing how quickly units can be rented out.
No: There is insufficient demand. Even though the percentage of renters is high, the lack of data on DOM suggests that units may take longer to rent, reducing profitability.
It Depends: Given the 52.7% of residents are renters, but the DOM is listed as N/A, it's uncertain whether demand will consistently support your investment. You need to research further to find out the average DOM in Pigeon Forge, TN, to make an informed decision.
In conclusion, based on the provided data, purchasing a property in ZIP code 37863 for Section 8 investment is not advisable due to the FMR not covering the debt service on a $421,775 property. However, if you were to consider a lower-priced property where the FMR could cover debt service, then assessing the market rent and the DOM becomes crucial for ensuring consistent demand.
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.