Location: Nashville-Davidson--Murfreesboro--Franklin, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 37016 is poised for stability and potential growth over the next 12-24 months, based on several key metrics. The median home value stands at $406,694, indicating a robust housing market where property values reflect a blend of affordability and desirability. Despite the median days on market (DOM) being listed as N/A, which typically suggests a fast-moving market where homes are selling quickly, the absence of percentage reduction in listings signals that sellers are maintaining their asking prices without significant concessions. This combination points towards strong pricing power for landlords and small-portfolio investors.
On the rental side, the Fair Market Rent (FMR) for ZIP 37016 is set at $1,270 for fiscal year 2024, compared to the current market rate of $1,094 as per the Census ACS. This discrepancy suggests that rental properties in 37016 are undervalued relative to the government's benchmark for fair market rates. Landlords can leverage this gap to adjust rents upwards, aligning with the FMR, which would improve cash flows and potentially increase the overall profitability of their investments.
For long-term investors, the setup in 37016 implies a realistic appreciation thesis. With stable median home values and a rental market that has room to grow towards the FMR, the fundamentals support gradual price increases. However, the lack of specific data on listing reductions and DOM makes it challenging to predict the exact pace of appreciation. Instead, the data suggests a favorable environment for holding properties, with the potential for steady gains driven by both home value appreciation and rental income growth.
In summary, the median home value, the absence of price reductions, and the upward trend in rental rates all indicate a market where landlords and small-portfolio investors can maintain strong pricing power. The current rental rates below the FMR provide an opportunity for adjustments that can enhance returns, while the overall stability of the housing market supports a positive outlook for property appreciation over the longer term.
Data Sources: FMR data from HUD (2027). 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.