Location: Pickett County, TN | Metro: Clay County, TN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 38573, set at $990 for the metro area fiscal year 2026, represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. This figure is not the rent you will charge your tenants; it is the maximum amount that the government will pay toward a tenant's rent if they are part of the Section 8 program. Your actual rent can be higher, but the voucher will only cover up to $990.
To put this into perspective, the average rent in ZIP 38573, according to Census ACS data, is $850. This suggests that the FMR is slightly above the market rate, which could be beneficial for landlords looking to participate in the Section 8 program as it allows for a higher rent ceiling.
With an 18.9% share of renters in the area, there is a solid demand for rental properties, indicating that a Section 8 rental could attract a steady stream of tenants. However, it's important to note that the acquisition cost of a property in ZIP 38573 is around $276,488, which is the median home value. This means that purchasing a property to convert into a rental might come with a significant upfront investment.
Before committing to a Section 8 rental in ZIP 38573, verify that the property meets all the necessary requirements set forth by the local housing authority. These requirements ensure that the property is safe, decent, and sanitary for tenants. Compliance with these standards is crucial for receiving the FMR payments and maintaining a successful Section 8 rental.
In summary, the FMR of $990 provides a benchmark for government payments, which is higher than the average market rent of $850. With a substantial demand for rentals and an acquisition cost of approximately $276,488, the decision to enter the Section 8 market should be carefully considered. Ensuring the property meets the housing authority's criteria is a key step to take before proceeding.
Data Sources: FMR data from HUD (2027). 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.