Location: Cumberland County, TN | Metro: Cumberland 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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $261,866 | 0.6% | F |
| 3BR | $2,120 | $411,362 | 0.52% | F |
| 4BR | $2,140 | $598,132 | 0.36% | F |
U.S. Census Bureau data (2024)
In ZIP code 38558, which encompasses Crossville, TN, in Cumberland County, the economics of Section 8 housing are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1,410 per month for FY 2026. This figure is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
The local market rent for a two-bedroom unit, based on Census ACS data, is slightly lower at $1,370 per month. Landlords might wonder how these numbers translate into actual payments when a tenant uses a Section 8 voucher. Here's the breakdown:
The voucher program covers the difference between 30% of the tenant's income and the SAFMR. If a tenant's monthly income is $1,000, their share would be $300 (30%).
The remaining amount, up to the SAFMR, is paid by the housing authority. For a two-bedroom unit, this would be $1,410 minus the tenant’s $300, totaling $1,110 covered by the voucher.
Utility allowances are also part of the equation. Cumberland County provides an additional $300 for utilities, bringing the total reimbursement close to the SAFMR. Therefore, the landlord receives $1,110 for rent plus $300 for utilities, summing up to $1,410.
Given that the local market rent is $1,370, landlords participating in the Section 8 program can expect a slight surplus of $40 per month. This surplus comes from the higher SAFMR compared to the actual market rates. It's important to note that the SAFMR sets the maximum limit for voucher payments, so if the market rent were higher than the SAFMR, landlords would face a reimbursement gap instead.
In summary, for a two-bedroom apartment in ZIP 38558, landlords can anticipate receiving the full SAFMR of $1,410, which exceeds the local market rent by $40. This makes Section 8 participation financially viable and beneficial for landlords in this area.
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.