Location: White County, TN | Metro: DeKalb 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $260,400 | 0.52% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 38581 in White County, Tennessee, reveals several key points that can guide investment decisions. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1020, which is notably higher than the market rent reported by the Census ACS, currently at $928.
This difference indicates that voucher tenants will generally cashflow at the HUD FMR rate, providing a positive financial outcome for landlords. The higher FMR ensures that rental income from voucher holders covers the cost of renting, leaving room for profit.
The median home value in ZIP 38581 is $252,007, which when compared to the average market rent, yields a rent-to-price ratio of approximately 0.04%. This ratio suggests that the area is relatively undervalued in terms of rental income potential, making it an attractive option for investors looking to capitalize on this discrepancy.
Regarding the days on market (DOM) and price-cut shares, the data shows a median DOM of N/A and a price-cut share of 0.2%. These figures indicate that the market is stable, with minimal need for price adjustments, which bodes well for long-term investment strategies focusing on stability rather than rapid appreciation.
In conclusion, the strongest angle for investors in ZIP 38581 is cashflow, due to the favorable difference between HUD FMR and market rent rates. This allows for a steady stream of income without the risks associated with volatile markets or the need for significant property upgrades to attract tenants.
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.