Location: DeKalb County, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $302,147 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 37012 in the DeKalb County, TN metro area reveals a strong cashflow opportunity due to the disparity between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for ZIP 37012 is set at $1270 for fiscal year 2024, which is significantly higher than the market rent of $749 reported by the Census ACS. This indicates that voucher tenants will cashflow at FMR levels, providing a substantial margin above the local market rates.
To further illustrate the financial advantage, consider the median home value in ZIP 37012, which stands at $298,549. Using the HUD FMR of $1270, we can calculate a rent-to-price ratio of approximately 0.43%, suggesting that rental income from Section 8 vouchers can be highly profitable relative to property values. This ratio is derived by dividing the annual rent ($1270 x 12 months) by the median home value and multiplying by 100 to get a percentage.
The dynamics of days on market (DOM) and price-cut shares are not applicable in this scenario since the focus is on rental properties rather than sales. However, the strong cashflow potential is the most compelling angle for investors in ZIP 37012, making it an attractive investment opportunity for those seeking consistent and reliable returns.
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.