Section 8 Fair Market Rent (FMR) for ZIP 37950 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,220
1 Bedroom	$1,230
2 Bedrooms	$1,540
3 Bedrooms	$1,930
4 Bedrooms	$2,220
5 Bedrooms	$2,575
6 Bedrooms	$2,884
7 Bedrooms	$3,115
8 Bedrooms	$3,271

The analysis of ZIP 37950 in Knoxville, TN, reveals a unique position in the real estate market when considering yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,280, which is the key figure we have for assessing the potential rental income in this area.

To classify the market, we must consider the following:

• Yield: The FMR of $1,280 suggests a moderate rental yield. While it is a solid income figure, the lack of comparative market and home value data makes it challenging to determine if this is high relative to property costs.
• Stability: There is insufficient data on the percentage of renters, days on market (DOM), and median income levels to fully assess stability. However, the presence of 1,553 rental properties listed on Trulia indicates a robust rental market, suggesting some level of demand.

The classification of ZIP 37950 depends significantly on the missing figures. With only the FMR provided, it leans towards being a steady-cashflow zone rather than a high-yield/low-stability market typical of flipping strategies. The rental market appears active, but without specific figures on vacancy rates and income levels, it's difficult to quantify stability.

To make a more informed decision, landlords and small-portfolio investors should seek additional data on property values, local rental trends, and demographic profiles to better understand the investment landscape in ZIP 37950.

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.