Location: Coffee County, TN | Metro: Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 37018 are defined by the SAFMR (Small Area Fair Market Rent) rates established by HUD (Housing and Urban Development). For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1270. This rate is specific to this ZIP code, reflecting localized rental market conditions.
In contrast, the local market rent for a two-bedroom unit in ZIP 37018, according to Census ACS data, is $930. This lower figure represents the average rent paid by tenants without vouchers for similar units in the area.
A landlord participating in the Section 8 program should understand that the total reimbursement received is not solely based on the SAFMR. It involves the tenant's contribution and any utility allowances. Typically, the tenant pays approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1600 for a family eligible for a Section 8 voucher, the tenant would contribute around $480 toward the rent.
The remaining amount, up to the SAFMR, is covered by the housing authority. In this case, if the SAFMR is $1270 and the tenant contributes $480, the housing authority would pay the difference, which is $790. Additionally, there may be utility allowances that vary but generally range from $100 to $200 per month, depending on the specifics of the housing authority’s policy.
This means the total reimbursement to the landlord could be anywhere between $890 to $990 per month, assuming a utility allowance of $100 to $200. When comparing this to the local market rent of $930, it becomes clear that landlords might face a slight shortfall in their rental income.
To summarize, the typical reimbursement gap for a two-bedroom apartment in ZIP 37018 under the Section 8 program is about $40 to $130, given the assumptions above. Landlords should factor this into their decision-making process when considering participation in the Section 8 program.
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.