Location: Hardin County, TN | Metro: Hardin 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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $133,974 | 0.75% | D |
| 3BR | $1,250 | $222,316 | 0.56% | F |
| 4BR | $1,310 | $398,812 | 0.33% | F |
| 5BR | $1,520 | $562,481 | 0.27% | F |
U.S. Census Bureau data (2024)
Savannah, TN, located in the Hardin County, TN metro area (ZIP code 38372), offers a strategic fit within a Section 8 portfolio due to its characteristics as a cash-flow anchor. The primary reason for this classification is the significant spread between the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) and the local market rents.
The HUD FMR for the Savannah, TN metro area for fiscal year 2026 is $930, while the current market rent stands at $768. This means that landlords can expect a positive cash flow from properties rented under Section 8 contracts. The difference of $162 per month provides a cushion against potential increases in operating costs such as maintenance, utilities, and property taxes. Additionally, the median home value in the area is $197,193, indicating a relatively stable housing market that supports consistent rental incomes.
While the area does not present a strong appreciation play with only a 0.2% price-cut share and an N/A-day days on market (DOM), the high renter share of 28.4% and median income of $51,053 suggest that there is a robust demand for rental properties. This demand, combined with the disparity between FMR and market rents, makes Savannah, TN a reliable location for generating steady cash flows.
To summarize, Savannah, TN should be considered a cash-flow anchor within a Section 8 portfolio strategy. Landlords can leverage the $162 monthly spread between HUD's FMR and local market rents to ensure profitability. Although appreciation opportunities are limited, the strong tenant base and stable home values provide a solid foundation for long-term investment.
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.