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City Girls JT Out of Prison ... Living in Halfway House

City Girls member JT is one step closer to freedom ... we've learned the rapper is out of prison, and finishing out her sentence in a halfway house.

Law enforcement sources tell TMZ ... JT was just transferred from FCI Tallahassee to a halfway house in the Atlanta area as she awaits her March 7 release.

It's a huge change of scenery for JT after more than a year behind bars ... inmates in halfway houses get tons of extra benefits, like being able to leave the house during the day to work, and visit family and friends.

JT is already taking advantage of her new situation ... releasing a new track, fittingly called "First Day Out."

You'll recall ... JT had been behind bars since June 2018, after turning herself in to authorities on fraud charges. She went to prison just as the City Girls were getting super famous.

In addition to her new music, JT's also rocking fresh bling. As we first reported, her City Girls counterpart Yung Miami hooked her up with some custom diamond jewelry as a welcome home present.

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