Location: Claiborne County, TN | Metro: Knoxville, 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 | $760 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $278,194 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 Fair Market Rent (FMR) for ZIP 37870 in fiscal year 2024 is $1050. In contrast, the market rent, as reported by the Census ACS, is $933. This indicates a positive gap of $117, which translates to approximately a 12.5% premium for landlords accepting Section 8 tenants.
This gap makes ZIP 37870 a strong yield play for landlords and small-portfolio investors. With a median home value of $232,046 and a median income of $55,516, the financial landscape suggests that the 17.1% of renters in this area who rely on housing vouchers can provide a consistent and slightly above-market rental income. The higher FMR compared to the actual market rent means that landlords can potentially charge closer to the FMR rate without deterring voucher holders.
However, it's important to note that while the premium exists, the overall rental market is still relatively affordable. This means that landlords should be prepared to offer competitive amenities and maintenance to attract voucher tenants. Furthermore, the reliance on Section 8 payments might introduce some administrative complexities, such as regular inspections and compliance checks.
In summary, the gap between the FMR and the market rent in ZIP 37870 presents an opportunity for higher yields, but it must be balanced against the realities of the local rental market and the needs of voucher recipients. Landlords should consider the long-term benefits of stable rental income and the broader economic context when deciding whether to participate in the Section 8 program.
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.