Location: Morgan County, TN | Metro: Morgan County, 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 | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $253,493 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 37887 is situated in a suburban neighborhood characterized by a relatively small population of 6,555 residents. With 22.1% of the population being renters, it indicates a modest demand for rental properties. The median household income in the area stands at $65,137, suggesting a middle-class community. The median home value is $221,106, reflecting an affordable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 37887 as of the fiscal year 2024 is set at $860. This is notably higher than the average market rent of $683, as reported by the Census Bureau's American Community Survey. The gap between the FMR and the market rent suggests that there is a potential opportunity for landlords to increase their rental income without significantly exceeding the affordability threshold for Section 8 tenants.
Given these economic conditions, ZIP 37887 could be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the lower market rent compared to the FMR means that they can charge closer to the FMR without risking the loss of tenants who rely on vouchers. For value-add buyers, the potential exists to renovate or improve properties and still remain competitive in terms of pricing, thereby attracting tenants willing to pay above the average market rate but below the FMR.
In conclusion, the ZIP code 37887 presents a balanced environment for real estate investment, particularly for those interested in Section 8 properties. The combination of a moderate rental demand, a middle-income demographic, and favorable rent economics makes it a viable option for both passive and active investors looking to capitalize on the existing market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.