Location: Scott County, TN | Metro: Morgan County, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 37872, located in Scott County, Tennessee, reveals several key points for landlords and small-portfolio investors.
The rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $860 for the fiscal year 2024 is significantly lower than the market rent of $1,066 as reported by the Census ACS. This disparity suggests that landlords may struggle to cover their costs if they rely solely on FMR guidelines.
Regarding acquisition affordability, the median home value stands at $211,463. However, due to the lack of data on days on market (DOM) and the percentage of homes that have been subject to price cuts, it's challenging to provide a comprehensive assessment. Nonetheless, the median home value indicates a moderate investment cost, which could be attractive for those looking to enter the market at a reasonable price point.
Tenant demand is relatively low in ZIP 37872. With a total population of 2,346, only 24.8% of residents are renters. This limited rental market suggests that finding tenants might be more difficult compared to areas with a higher renter share.
In conclusion, while the median home value offers a potentially manageable entry point into the real estate market, the mismatch between FMR and market rents, combined with a modest tenant demand, makes ZIP 37872 less favorable for landlords and small-portfolio investors. The financial viability of rental properties here is questionable, and the competition for tenants is likely to be intense given the low renter share of the population.
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.