Location: Putnam 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 | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $245,758 | 0.41% | F |
| 3BR | $1,320 | $401,155 | 0.33% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 38574, which includes Monterey, TN, in Putnam County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $930 for fiscal year 2026. This figure represents the maximum amount that a Section 8 housing voucher can cover for rent in this area. However, it's important to note that the local market rent for a two-bedroom unit, according to the Census ACS, is significantly lower at $754.
A landlord participating in the Section 8 program should understand that the reimbursement they receive is based on the voucher holder's income and the total rent amount. Specifically, the voucher holder is expected to contribute 30% of their adjusted monthly income towards rent. For example, if a tenant has an adjusted monthly income of $1,500, they would pay $450 (30% of $1,500) towards rent. The remaining amount, up to the SAFMR of $930, is covered by the housing authority. In this case, the housing authority would reimburse the landlord $480 ($930 - $450).
In addition to the base rent, there are utility allowances that vary depending on the location and the type of unit. These allowances are meant to help cover the cost of utilities such as electricity, water, and gas. For ZIP 38574, the utility allowance is typically around $200 per month for a two-bedroom apartment. This means that the landlord could potentially receive an additional $200 per month to cover utility costs.
To summarize, in ZIP 38574, a landlord can expect to receive a total of $680 per month for a two-bedroom apartment when factoring in the tenant's contribution and the utility allowance. This calculation is based on the SAFMR of $930 and a tenant paying 30% of their adjusted income, which in this example is $450. The utility allowance adds another $200 to the reimbursement.
Given the local market rent of $754, landlords in ZIP 38574 will find themselves with a reimbursement gap of $74 ($754 - $680). This means that landlords will receive $74 less than the average market rent for a two-bedroom unit. Landlords should be prepared for this shortfall and consider whether it aligns with their financial goals and property management strategies.
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.