Location: Pickett County, TN | Metro: Fentress 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 | $1,190 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $222,168 | 0.45% | F |
| 3BR | $1,190 | $275,867 | 0.43% | F |
| 4BR | $1,390 | $329,919 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 38556, Jamestown, Tennessee, are straightforward when analyzed against the local rental market. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $930. This figure represents the maximum amount that the housing authority will pay to landlords participating in the Section 8 program for a two-bedroom unit.
In contrast, the local market rent for a two-bedroom apartment in Jamestown, according to the latest Census ACS data, averages $634. This lower figure reflects the typical rents charged by landlords outside of the Section 8 program.
A landlord's actual reimbursement under the Section 8 program involves several components. First, the tenant is responsible for paying a portion of the rent, which is typically 30% of their adjusted income. If we assume an average adjusted income of $1,500 per month for a Section 8 eligible household, the tenant would contribute approximately $450 towards the rent.
The housing authority then covers the difference between the tenant's contribution and the SAFMR. In this case, it would be $930 - $450 = $480. However, this calculation does not include utility allowances, which can vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 38556, the utility allowance might add another $200 to the reimbursement, bringing the total to $680.
This means that a landlord in ZIP 38556 who participates in the Section 8 program for a two-bedroom apartment would receive a total reimbursement of around $680 per month. Given that the local market rent for a similar unit is $634, there is a surplus of about $46 for the landlord, assuming the local market rent accurately reflects the cost of maintaining the property at a standard acceptable under the Section 8 program.
To summarize, the SAFMR of $930 ensures that landlords receive more than the local market rent of $634, resulting in a positive cash flow. Landlords should also consider the additional utility allowance when calculating their total reimbursement. This economic structure supports landlords in maintaining their properties while providing affordable housing options for low-income families in Jamestown, Tennessee.
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.