Location: Van Buren County, TN | Metro: Chattanooga, TN-GA MSA
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 | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $266,879 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 38585 presents a dynamic rental market that reflects a balance between supply and demand, but leans towards a slight surplus of supply over demand. This inference is drawn from the fact that the Fair Market Rent (FMR) set at $890 for the fiscal year 2024 is higher than the actual market rent of $700, based on Census ACS data. The gap suggests that landlords may be offering competitive pricing to attract tenants, indicating a market where supply slightly exceeds demand.
A further indication of this dynamic is the low price-cut share of 0.3%, which implies that while landlords are setting their rents competitively, there isn't a widespread need to significantly reduce prices to secure tenants. This also points to a stable market where landlords have some flexibility in pricing without facing an overwhelming need to adjust downwards.
The median home value of $202,455 suggests that homeownership is accessible to a broad range of income levels, potentially reducing long-term housing pressure on renters. However, the 19.3% renter share highlights that nearly one-fifth of residents prefer or are compelled to rent, which can create a persistent demand for rental properties. This mix of homeowners and renters contributes to a steady rental market, where the needs of both groups are met without significant strain.
In summary, ZIP 38585 is characterized by a rental market that is in flux due to the interplay between supply and demand. Landlords have the advantage of setting competitive rents without needing to frequently cut prices, reflecting a market that is more supply-driven. The presence of a substantial renter population ensures ongoing demand for rental properties, making it a viable investment area for small-portfolio landlords.
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.