Section 8 Fair Market Rent (FMR) for ZIP 37871 - 2027
Location: Sevier County, TN | Metro: Knoxville, TN HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$70,938
Housing Authorities Serving ZIP 37871
The ZIP code 37871, encompassing Strawberry Plains, TN, is a rural area situated in Knox County. It offers a unique blend of serene living conditions and proximity to urban amenities, making it attractive for both residents and investors. This analysis delves into key metrics that can guide landlords and small-portfolio investors in making informed decisions about their investments in this region.
- The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 37871 for fiscal year 2024 is set at $1170. This figure represents the maximum amount a landlord can charge for a unit under the Section 8 program, ensuring affordability for low-income tenants while providing a benchmark for rental rates.
- The average market rent for all types of housing units in Strawberry Plains, TN, according to Census ACS data, stands at $758. This indicates that the actual rents charged are significantly below the FMR, suggesting potential for higher rental yields without exceeding the affordability threshold.
- The median home value in ZIP 37871 is $299,798. This reflects the typical price point for homeownership in the area, which is relatively stable and offers good value for investment properties.
- Renters make up 25.6% of the population in this ZIP code. This percentage points to a moderate demand for rental properties, indicating that there is a steady but not overwhelming reliance on rental housing.
- The median household income in the area is $70,938. This provides insight into the financial capability of potential tenants, suggesting that they are likely able to afford market rents without relying heavily on subsidies.
- Due to limited data availability, the days on market (DOM) for rental listings is listed as N/A. However, this does not necessarily indicate slow turnover but rather the absence of comprehensive tracking in rural areas.
Synthesizing these points, investors in ZIP 37871 can expect a balanced market where rental properties are moderately in demand, and tenants generally have the means to cover market rents. The gap between the FMR and actual market rents presents an opportunity for landlords to achieve better returns without compromising affordability. Given the stability in home values and the moderate renter share, the area offers a solid foundation for real estate investment, particularly for those looking for a mix of affordability and yield.
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.