Section 8 Fair Market Rent (FMR) for ZIP 37940 - 2027

FY 2027 Fair Market Rent Rates

The potential risks for investing in Section 8 properties in ZIP code 37940 in Unknown, TN, must be carefully considered. Tenant turnover can be a significant issue, especially when comparing the market rent to the Fair Market Rent (FMR) set at $1280 for FY 2024. With no available data on the current market rent, it's crucial to understand that if the market rent is higher than the FMR, landlords might experience higher turnover rates as tenants seek more affordable housing.

Vacancy exposure is another critical concern. The lack of data on the average days on market (DOM) indicates uncertainty regarding how quickly vacant units can be filled, particularly under Section 8. This uncertainty can lead to extended periods without rental income, impacting cash flow and profitability.

Deferred maintenance is also a risk factor. Without specific figures on the typical home value and median income in ZIP 37940, it's difficult to gauge the financial health of property owners and their ability to maintain homes adequately. Poorly maintained properties can result in higher maintenance costs and potential compliance issues with Section 8 requirements.

Despite these risks, the high concentration of renters in the area, indicated by the N/A% renter share, typically translates into a robust demand for housing vouchers. High renter density suggests a larger pool of potential Section 8 tenants, which can help mitigate vacancy concerns and ensure steady occupancy.

Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 37940.

Data Sources: FMR data from HUD (2027).

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.