Location: Hancock County, TN | Metro: Claiborne 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 | $770 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $250,059 | 0.5% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 37879 for Section 8 properties, follow this decision tree:
1) Does FMR $950 (metro FY 2026) clear debt service on a $216,125 property?
Yes. The Fair Market Rent (FMR) of $950 is sufficient to cover the debt service on a property valued at $216,125. This assumes a typical mortgage rate and term that aligns with the FMR threshold.
No. If the FMR does not clear the debt service, then purchasing a property in this ZIP code would be financially unviable under Section 8 guidelines. Landlords must ensure that their rental income meets or exceeds the cost of servicing the mortgage.
It depends. The outcome hinges on the specifics of the mortgage, such as interest rate and term length. If these factors are favorable, then the FMR can indeed cover the debt service. Otherwise, the investment may not be advisable.
2) Is market rent $767 (Census ACS) above, at, or below FMR?
Above. If the market rent exceeds the FMR, the landlord has the flexibility to charge the higher market rate for non-Section 8 tenants while still meeting the program's requirements for eligible tenants. This scenario presents an opportunity for maximizing profits.
At. When the market rent matches the FMR, the landlord can charge the FMR without losing potential tenants to higher-priced alternatives. This equilibrium can provide steady, predictable income.
Below. If the market rent is below the FMR, the landlord will have to accept the lower market rate, which could result in lower-than-expected returns. However, this also means the property is more affordable for low-income families, potentially increasing demand among Section 8 participants.
3) Are 23.4% renters + N/A-day DOM enough demand?
Yes. With 23.4% of residents being renters, there is a reasonable level of demand for rental properties. The lack of data on days on market (DOM) suggests either a stable rental market or a need for further investigation into local market dynamics.
No. If the percentage of renters is too low or if the DOM indicates long vacancy periods, the demand for rental properties may not be strong enough to support a Section 8 investment. Landlords need to ensure they can maintain occupancy rates to sustain cash flow.
It depends. The percentage of renters alone does not fully indicate the strength of demand. Additional factors, such as unemployment rates, average household income, and the number of Section 8 vouchers available, should be considered to make a well-informed decision.
In conclusion, the viability of purchasing a property in ZIP 37879 for Section 8 purposes is contingent upon the answers to these questions. A positive outcome on all fronts suggests a promising investment, while negative or uncertain outcomes may require reconsideration or further analysis.
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.