FY2027 Small Area FMR · Spencer, TN
ZIP 38585 Fair Market Rent & Payment Standards
HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 38585 (Spencer, TN) is $1,000 a month, up 3.1% from FY2026. That is 25% below the Chattanooga, TN-GA area-wide FMR of $1,340.
Payment standard range, 2 bedrooms
Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.
FY2027 FY2026
Where 38585 sits in the Chattanooga, TN-GA area
Of the 71 ZIP codes HUD lists for the area, 38585 has the 60th highest two-bedroom Small Area FMR. Chattanooga, TN-GA is one of the 65 metro areas where HUD requires Small Area FMRs for the Housing Choice Voucher program (designated 2023), so local housing agencies must set payment standards from this ZIP code's figure, normally between $900 and $1,100 for two bedrooms.
ZIP code 38585 crosses more than one HUD area. HUD also lists it under Bledsoe County, TN (same figures) and Van Buren County, TN (same figures). The figure that applies depends on which side of the line the home is.
All unit sizes
| Unit | FY2027 SAFMR | Payment standard range | Area-wide FMR | FY2026 SAFMR |
|---|---|---|---|---|
| Studio | $760 | $684 – $836 | $1,181 | $740 |
| 1 bedroom | $770 | $693 – $847 | $1,231 | $750 |
| 2 bedrooms | $1,000 | $900 – $1,100 | $1,340 | $970 |
| 3 bedrooms | $1,200 | $1,080 – $1,320 | $1,657 | $1,260 |
| 4 bedrooms | $1,370 | $1,233 – $1,507 | $1,761 | $1,350 |
A household renting a two-bedroom home at the Small Area FMR of $1,000 needs about $40,000 a year to keep housing costs at 30% of income. The area median family income is $97,400 and the 80% low-income limit for four people is $77,900. ZIP code 38585 lies mainly in Van Buren County and Sequatchie County. See the Chattanooga, TN-GA metro page for the full income limits table and the household check.
Nearby ZIP codes
Questions
What is the Fair Market Rent for ZIP code 38585?
HUD's FY2027 Small Area Fair Market Rents for 38585 are $760 (studio), $770 (1 BR), $1,000 (2 BR), $1,200 (3 BR) and $1,370 (4 BR) a month.
What is the Section 8 payment standard in 38585?
Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 38585 that range is $900 to $1,100 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.
Which income limits apply in 38585?
The FY2026 income limits of the Chattanooga, TN-GA area apply: median family income $97,400, low-income (80%) limit $77,900 for a family of four.