Location: White County, TN | Metro: Jackson 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 | $910 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $236,581 | 0.53% | F |
| 3BR | $1,680 | $341,814 | 0.49% | F |
| 4BR | $1,780 | $488,362 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 38506, located in Cookeville, Tennessee, presents a unique rental market scenario when considering the financial capabilities of its residents. The median income here stands at $70,279, which is a solid figure for a household. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,644. This amount represents a significant portion of the average household's monthly income.
To put this into perspective, the Federal Market Rent (FMR) for the metro area, as determined for fiscal year 2026, is $1,150. This is the standard payment made by housing vouchers to landlords. Comparing the ZORI of $1,644 to the FMR of $1,150 reveals an affordability gap of nearly $500 per month. For renters, this difference can be substantial, especially when other living expenses are factored in.
In ZIP 38506, approximately 25.3% of the population are renters, with a total population of 30,100. This means there are around 7,600 households renting. Given the disparity between the market rate and the voucher payment, landlords will face competition from those who prefer to offer lower rents to attract tenants with vouchers. Vouchers provide a guaranteed source of income, albeit at a lower rate, while cash-paying tenants might offer higher rents but come with the risk of non-payment.
The takeaway for landlords is clear: understanding the dynamics of the local rental market is crucial. While cash-paying tenants can potentially bring in higher rents, the presence of vouchers in the area suggests a need for flexibility. Landlords should consider the balance between accepting vouchers, which ensures consistent income, and setting market rates that might appeal to a smaller pool of financially capable renters. The choice should align with the landlord's risk tolerance and long-term investment goals in the Cookeville rental market.
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.